World Liberty Financial (WLFI) has proposed a buyback-and-burn program following a dramatic 50% price collapse shortly after its launch. The token initially surged 130% to $0.48 before plummeting to $0.210, representing a 36% drop from its $0.331 high, with current trading at $0.229.
The burn proposal would utilize trading fees from protocol-owned liquidity pools on Ethereum, BNB Chain, and Solana to repurchase and permanently remove WLFI tokens from circulation. With day-one unlocking of 24.6 billion tokens and 75.4 billion still waiting, the mechanism aims to create supply scarcity by recycling trading fees into buybacks. At recent volumes of $128 million, this could generate approximately $384,000 in fees (at 0.3% per trade) for burning.
Serious allegations of insider trading and price manipulation have emerged, with on-chain analysts detecting suspicious wallet activity suggesting insiders sold before the downturn. Critics on social media have labeled WLFI a "pump and dump scam," particularly targeting Eric Trump's association with the project. The controversy intensified when a trader moved $3 million in USDC to Hyperliquid to short WLFI, betting on further decline.
Whale concentration remains extreme, with the top 100 wallets controlling 98.23% of supply. Notably, TRON founder Justin Sun unlocked 20% of his WLFI position worth nearly $200 million, with his total holdings valued at $891.2 million. Despite the turmoil, influencer Andrew Tate demonstrated renewed confidence by opening a new long position after his previous $67,500 position was liquidated.