What happened?
The value of World Liberty Financial’s (WLFI) derivatives has significantly increased as users anticipate the first token release of the Trump-linked project. According to Coinglass, there was a 530% increase in the 24-hour trading volume for WLFI derivatives, reaching $3.95b on Monday, with open interest also rising by over 60% to $931.9m. The token is due to be unlocked soon, which will allow 20% of the initial round of tokens to be claimed, totaling about 5% of the total supply.
Who does this affect?
This event impacts early investors in the WLFI token who stand to make significant gains on their investments, potentially more than twenty times what they initially put in. Notably, founders including Donald Trump Jr. and Eric Trump are excluded from this initial release. After the token unlock, the restriction will limit these early investors to selling only a fifth of their allocations.
Why does this matter?
The performance of WLFI will test the power of the Trump name in enhancing the value of the 100 billion-token supply. With pre-market valuations hinting at a fully diluted valuation of nearly $40b, WLFI could break into the top 20 digital assets, prompting more exchanges to list it. This would highlight the influence of well-known personalities on the crypto market and could impact market speculation and future investment strategies.