Binance has initiated a $40 million airdrop of its WLFI token, exclusively rewarding users who hold the World Liberty Financial USD (USD1) stablecoin on its platform through February 20, 2026. The program, as detailed in reports from BingX News and Ecoinimist, requires users to have completed KYC and hold USD1 in supported products like Spot, Margin, or Futures wallets. Notably, using USD1 as collateral can apply a bonus multiplier of roughly 1.2x to the accrued WLFI rewards.
The large-scale, exchange-led distribution is designed to boost short-term demand for USD1 on Binance and align incentives between the exchange and the stablecoin issuer. However, it has also intensified scrutiny over the stablecoin's market structure. Forbes reported that approximately 87% of circulating USD1 is held on Binance, creating a significant concentration risk. Crypto researcher Molly White highlighted the "theoretical risk if assets become inaccessible during an exchange failure or legal process." Both Binance and World Liberty Financial have pushed back on criticism, arguing that such concentration patterns are not uncommon for stablecoins.
The airdrop announcement coincides with a 20% price surge for the WLFI token itself. As of February 18, WLFI was trading at $0.1178, with spot trading volume more than doubling to $224 million. Analysts attribute the rally to positioning ahead of the exclusive World Liberty Forum at Mar-a-Lago and significant on-chain activity. Analytics platform Onchain Lens reported that 313.31 million WLFI tokens (worth ~$33.76 million) were withdrawn from Binance in an 11-hour window, a move often interpreted as accumulation for longer-term holding.
The forum, attended by high-profile executives from Coinbase, NYSE, Nasdaq, and Goldman Sachs, focuses on digital asset regulation and TradFi-crypto integration. This, coupled with the announcement of an upcoming World Swap forex and remittance platform, has fueled market speculation. Despite the rally, WLFI remains 64% below its all-time high from September 2025.
