The WLFI price has struggled in the past two days as investors remained on the sidelines. World Liberty Finance’s coin was trading at $0.2253 today, September, down from Monday’s high of $0.324. So, will it rebound or fall further?
Why the WLFI Price Has Crashed
The WLFI price initially jumped on Monday when it started trading in popular exchanges like Binance, OKX, Coinbase, and Upbit.
Like most newly launched coins, these gains were short-lived as the coin plunged. This plunge likely occurred as many investors and whales began selling for a significant profit.
As we wrote on Monday, it is common for newly launched tokens to pump and then dump. A good example of this is Pi Network, which initially went parabolic after its mainnet launch, only to retreat by almost 90% to where it is today.
WLFI coin has also plunged because of the memories of Official Trump (TRUMP) meme coin, which launched earlier this year. After soaring before his inauguration, the coin has plunged by over 90%, leading to billions of dollars in losses.
Most notably, investors are bracing for a supply surge in the coming months. There are now 24.6 billion WLFI tokens in circulation against a maximum supply of 100 billion.
As the ongoing Pi Network unlocks have shown, token unlocks could have a major impact on the price. To address this issue, the company is considering a significant token burn and a buyback mechanism to enhance its tokenomics.
There are also concerns about how WLFI holders will benefit from the ongoing USD1 boom. Data shows that USD1’s supply has jumped by 24% in the last 30 days to $2.7 billion, while the adjusted volume soared by 784% to $13.3 billion.
USD1’s stablecoin addresses have soared by 463% to 607k in this period. If the stablecoin remains in this range, it means that the company may make over $108 million in interest. These funds will likely benefit Trump’s family instead of the broader WLFI holders.
The WLFI price has slumped as other cryptocurrencies remain on edge this month, with most tokens falling ahead of the nonfarm payrolls data.
Will the World Liberty Coin Price Rebound?
A closer look at the most recently launched tokens reveals that many often plunge initially due to insider or sniper sales.
Many of them bounce back temporarily as investors buy the dip and then resume the downtrend.
The same may happen with the WLFI token, where it bounces back in the coming weeks and then crashes as the TRUMP meme coin did. Pi Network price also did that in May.
READ MORE: Raydium Partners With WLFI To Launch USD1 Stablecoin On Solana
