WLFI futures saw a dramatic sell-off as traders quickly turned on the Trump-linked digital asset, sending its value down 44% during the opening weekend. The cryptocurrency, officially known as World Liberty Financial (WLFI), is connected to the family of former President Donald Trump and debuted recently to much anticipation — and immediate downside pressure.
Massive Price Drop Marks WLFI’s Trading Debut
On August 23, WLFI futures launched on the decentralized trading platform Hyperliquid, opening at $0.44 per token. However, in just a few hours, its price plunged below $0.25, marking a sharp 44% decline. This steep drop came amid high trading activity as investors rushed to place bearish bets on the token.
Initially, WLFI was proposed as a non-tradable token. That stance was reversed following a key decision in mid-July, when a vote made WLFI tradable. This paved the way for both futures trading and an upcoming rollout of spot trading and a token distribution phase expected in September.
Market Valuation and Volatility
Based on its total supply of 100 billion tokens, WLFI’s brief launch price equated to a fully diluted valuation of approximately $44 billion. With the subsequent price drop, that figure has now contracted to around $24 billion. The dramatic decrease signals a mismatch between early valuation expectations and actual market sentiment.
Chart showing WLFI’s sharp decline against USD on Hyperliquid during its futures market debut.
Hyperliquid reported over $59 million in trading volume during the initial period, with current open interest resting at $57 million. These numbers highlight strong participation from speculative traders, especially those betting against the token’s success.
Negative Funding Rates Add Pressure
Funding rates—a metric used in perpetual futures to align the price of futures with the spot market—have turned deeply negative for WLFI. Currently sitting at an annualized -35%, these rates reflect the dominance of short sellers who are confident the price will decline further. With negative funding, traders holding short positions are required to pay fees to those holding long positions, a sign that the bearish sentiment is strong and widespread.
Unlike tokens like Bitcoin (BTC) and Ethereum (ETH), which have experienced declines but maintained relatively flat or positive funding rates in recent months, WLFI stands out with rare and extreme negative sentiment. The steep rate suggests traders view the token as grossly overvalued and are willing to incur costs to maintain their short bets.
Looking Ahead: Spot Market Launch and Challenges
The WLFI token’s future remains uncertain as the community awaits the upcoming spot market launch and a broader token distribution in September. Given the bearish debut of its futures, the spot market may face similar turbulence unless sentiment shifts dramatically.
How WLFI performs in the long term will likely depend on whether it can cultivate broader utility and investor confidence, beyond its high-profile political associations. For now, early trading indicates the market is deeply skeptical.
