WLFI Proposes Token Burn After Post-Launch Price Drop: What’s Next?

Key Insights:

• World Liberty Financial has introduced a buy-back program proposal to reduce $WLFI circulating supply and boost long-term value.
• The proposal comes after WLFI’s price dropped sharply following its launch this week.
• Some traders have raised concerns about possible insider activity and price manipulation around the newly launched WLFI token.

World Liberty Financial (WFLI) has proposed a plan for a buy back burn program that will help reduce the supply of $WFLI and boost the token’s long-term value.  The plan will involve using fees collected from the project’s own liquidity reserves to finance a series of buybacks. Once bought, the program will go ahead to burn them and reduce the supply.

The proposal comes after WLFI’s price dropped sharply following its launch this week, as short sellers sold off the token. WLFI fell about 36% from a high of $0.331 to a low of $0.210, before recovering slightly to $0.229.

WFLI Releases Token Burn Governance Proposal

World Liberty Financial has proposed a plan to utilize all fees generated from its Ethereum, BNB Chain, and Solana liquidity pools to repurchase WLFI tokens.

If approved, the plan would reduce the number of WLFI tokens available in the market. The project stated that this would give long-term holders a larger share of ownership and tie the token’s scarcity directly to the platform’s usage.

Possibility of Insider Activity and $WLFI Price Manipulation

Some traders have raised concerns about possible insider activity and price manipulation around the newly launched WLFI token.

On X, a user posting under the name StarPlatinumSOL claimed to have detected insider trading patterns, citing wallet activity that suggested certain holders may have sold tokens before the broader market downturn.

Others on the platform criticized Eric Trump, who has been publicly associated with World Liberty Financial. In response to his posts, commenters accused him of promoting a project that quickly lost value, saying he had tied his name to what they described as a questionable venture.

Skepticism over the project’s tokenomics also spread quickly. One commenter described WLFI as a “pump and dump scam,” a phrase often used to describe schemes in which insiders artificially inflate the price of an asset before selling it at a profit. A move that is more likely to happen at the expense of later investors.

Similar views surfaced across dozens of replies, with many suggesting the sharp price drop showed the risks of backing a token with close political ties. The WLFI team has not directly addressed the accusations, but the debate has raised questions about the project’s sustainability and the credibility of its governance proposals.

Traders Who Placed Shorts

One trader drew attention after moving $3 million in USDC to Hyperliquid to short WLFI. The move was flagged on-chain by users tracking derivatives wallet activity.

These short positions meant that traders were betting on WLFI’s price to fall, a wager that aligned with the steep drop the token experienced after its launch.

On X, some users pointed to the trade as evidence that big players were actively positioning against the project, further fueling concerns about WLFI’s stability.

Future Outlook

After the release of the proposal, influencer Andrew Tate is showing renewed confidence in the Trump family-linked World Liberty Financial (WLFI) token.

On Tuesday, Tate’s earlier long position on WLFI was liquidated for $67,500. However, instead of backing out, he quickly doubled down by opening another long position, signaling his belief that the token’s price could rise.

Data from blockchain analytics firm Lookonchain confirmed the move in a post on X. Tate’s latest move adds to the growing sense that WLFI could stage a recovery, even after recent volatility.