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The decentralized finance (DeFi) initiative, World Liberty Financial (WLFI), associated with Donald Trump, has ceased the circulation of 7.89 million WLFI tokens, valued at approximately 1.43 million dollars. This strategic move followed a recent buyback totaling 1.06 million dollars across different networks. The project aims to stabilize prices by reducing supply.
Details of Token Burn and Buyback
According to Lookonchain data, the WLFI team amassed approximately 4.91 million tokens valued at 1.01 million dollars. Additionally, with revenues from liquidity pools amounting to 1.06 million dollars, 6.04 million WLFI were purchased from the market. These tokens were subsequently burned on the BNB Smart Chain and Ethereum $3,992 networks to remove them from circulation. Furthermore, it was indicated that 3.06 million WLFI (around 638 thousand dollars) remained on the Solana $201 network, with a possibility of future burns.
The process excluded community funds or third-party pools, utilizing only the income from liquidity pools managed by WLFI. This was aimed at controlled reduction of the supply.
Governance Approval and Market Impacts
The burn plan received 99% approval in a vote held earlier this month, highlighting harmony between the community and project management. Despite a 33% decline in WLFI price over the last month, the token showed a 6% recovery in the last 24 hours. It is currently trading at 0.2049 dollars, yet still 38% below its all-time high.
A significant reason for interest in the project is its direct connection to the Trump family. Reports suggest that entities linked to the Trump family control WLFI tokens worth approximately 5 billion dollars. This underscores the potential major impact of large wallets on the price dynamics. Similarly, the market witnessed speculative moves following the launch of a new memecoin allegedly linked to Elon Musk last week. These instances underscore the significant roles political figures can play in the crypto market .
In conclusion, WLFI’s burn and buyback program stands out as an effort to boost market confidence. However, high supply and the actions of large investors could result in significant price volatility. Consequently, investors should assess the project not only through short-term price movements but also consider the long-term sustainability.
