- WLFI token plunged 50% to $0.16 after debut hype, rebounding slightly to $0.175.
- South Korea led trading volumes, while U.S. platforms like Coinbase lagged behind.
- Analysts warn retail investors could face heavy losses, even as presale buyers remain in profit.
World Liberty Financial’s governance token, WLFI, just hit its lowest price since launching earlier this week—marking a rough start for the high-profile DeFi project backed by U.S. President Donald Trump.
WLFI Price Crash After Hype-Fueled Debut
According to CoinGecko data, WLFI sank to $0.16 on Thursday, a steep fall from its $0.33 peak on Monday. That’s about a 50% drawdown in just a few days. The token has since clawed back to around $0.175, but it’s still down more than 20% on the day.
A spokesperson for the project brushed off concerns, saying: “The World Liberty Financial team is focused on building and shipping great products, as they have since the very beginning.” Still, the quick collapse echoes the pattern seen earlier this year with Trump’s Solana-based meme coin, TRUMP, which spiked on hype before diving nearly 90% from its all-time high.
South Korea Leads Trading, U.S. Lags Behind
Interestingly, most of the action in WLFI isn’t coming from U.S. traders despite listings on Coinbase and Kraken. South Korea’s Upbit and Bypit exchanges are driving the volume, handling about $190M and $95M in trades over the last 24 hours, compared to Coinbase’s $70M and Kraken’s tiny $5.5M.
That trend suggests global interest—particularly in Asia—is far stronger than domestic demand right now, even though the token plays a central role in World Liberty’s governance model.
Analysts Sound Alarm for Retail Traders
Analysts at Compass Point, an investment bank, are waving red flags. In a recent note, they warned that WLFI’s high debut valuation could “decimate” retail investors who jumped in late.
They compared the current situation to the meme coin bubble from earlier in 2025, where countless newcomers were left holding the bag after brutal drawdowns. “TRUMP remains 80% below all-time highs, while many retail traders have yet to fully recover… This could be another catalyst that crushes smaller investors,” the note stated.
Early Investors Still in Profit
It’s worth remembering, though, that presale buyers are sitting pretty. Accredited investors were able to grab WLFI at just $0.015 before exchange trading began. Even with today’s slump, those early backers are still deep in profit.
World Liberty Financial had already raised $500M before WLFI became transferable, so institutional and insider support remains significant. But the gap between presale pricing and retail entry levels is exactly what has some analysts worried about fairness—and whether regular traders are once again the ones left footing the bill.
