Donald Trump’s family-backed crypto project, World Liberty Financial (WLFI), launched its native token on September 1, sparking huge interest in the market. However, within 24 hours, WLFI’s price crashed nearly 50% from its peak of $0.46, falling to as low as $0.2096 before recovering slightly to around $0.2279. 
The sharp decline was driven by several key factors. A major catalyst was the unlock of 20% of presale tokens, valued at more than $1.85 million, which triggered heavy profit-taking from early buyers. Large whale investors also contributed to the sell-off, dumping their holdings and fueling market panic.
Adding to the pressure, security researchers flagged phishing exploits tied to Ethereum’s EIP-7702 standard, which enabled hackers to drain WLFI tokens from investor wallets. These exploits heightened fears and weakened buying momentum.
Market conditions also played a role, with overall sentiment in the “fear” zone (index at 39) and investors favoring safer assets instead of speculative new tokens.
Despite the drop, the Trump family’s net worth surged by nearly $6 billion with WLFI’s launch, thanks to its massive initial valuation. The project has since proposed a buyback-and-burn mechanism to stabilize prices, using liquidity fees across Ethereum, BNB Chain, and Solana to reduce circulating supply and potentially create upward pressure.
While optimism remains for WLFI’s long-term potential, its early price action highlights the risks of new token launches, especially when combined with security threats and whale-driven volatility. Investors are advised to stay cautious and closely track ongoing governance decisions and market performance.
