Trump Linked WLFI Token Plunges 40 Percent Despite Burn Event
According to Cointelegraph, the Trump family-linked World Liberty Financial token has declined over 40% since launching on Monday. The WLFI token fell despite a large-scale burn event that permanently removed 47 million tokens from circulation. The burn aimed to tighten supply and boost value of remaining tokens.
Major cryptocurrency investors lost millions betting on the token's price appreciation. Whale wallet 0x432 lost more than $1.6 million after closing a leveraged WLFI long position. The investor opened a second long position just 15 hours after closing a previous trade with $915,000 profit.
Out of more than 85,000 pre-sale participants, 60% still hold the token while 29% sold completely. The token price fell another 18% in 24 hours leading to Thursday, marking total decline of 41% since Monday launch.
Market Confidence Erodes Among Large Holders
The WLFI losses reflect broader patterns in whale behavior during 2025. CoinDesk reports World Liberty Financial blacklisted Tron founder Justin Sun's address containing 595 million unlocked tokens worth $107 million. The move followed several outbound transactions from Sun's wallet including one worth $9 million.
Professional traders are experiencing heightened volatility risks this year. Recent analysis shows institutional investors now prioritize diversified exposure over concentrated positions in single tokens. The WLFI decline demonstrates how quickly sentiment can shift even with prominent backing.
We recently covered how French Riviera city Cannes leads global crypto adoption with ambitious 2025 plans, targeting 90% merchant adoption. This contrasts sharply with speculative token performance affecting investor confidence.
Institutional Strategy Shift Reshapes Crypto Landscape
The WLFI situation illustrates changing dynamics in cryptocurrency investing during 2025. Advanced analytics show whale activity now drives capital reallocation between established assets like Bitcoin and Ethereum rather than speculative tokens. Institutional investors accumulated $2.59 billion in cross-chain transfers from Bitcoin to Ethereum this year.
Large-scale investors are reducing exposure to celebrity-backed tokens in favor of utility-focused assets. The shift represents maturation beyond speculative trading toward fundamental value assessment. Traditional financial institutions now seek sustainable revenue streams rather than short-term price momentum.
Regulatory uncertainty continues affecting token launches tied to political figures. The WLFI experience may deter similar projects while encouraging focus on compliance and clear use cases. Market participants increasingly distinguish between genuine innovation and promotional ventures in their investment decisions.
