In-Depth Analysis of the Trump Family's Encryption Project WLFI: Business, Background, Token, and Valuation Expectations

Introduction

Recently, after Circle went public, its stock price surged, and global stablecoin concept stocks performed actively. The U.S. stablecoin bill "Genius Act" has passed the Senate vote and is currently under review in the House of Representatives. There are reports that the Trump family's encryption project World Liberty Financial may unlock its Token early, becoming a major hotspot in the altcoin market.

This article will analyze the business status, project background, Token mechanism, and valuation expectations of World Liberty Financial from multiple dimensions, providing readers with several perspectives to observe the project.

Business: Product Status and Core Competitive Advantages

World Liberty Financial(WLFI) is a decentralized financial platform, with its core product being the USD stablecoin USD1. USD1 is a stablecoin pegged 1:1 to the US dollar, fully backed by cash and US Treasury bonds. WLFI also plans to launch lending and DeFi applications, which are not yet live.

USD1 business data

As of June 2025, the circulation of USD1 is approximately 2.2 billion, of which BNBchain issued 2.156 billion, Ethereum 48 million, and Tron 26,000. BNBchain has 248,000 holding addresses, Ethereum 66,000, and Tron only 1.

93.7% of USD 1(, approximately 2.02 billion ), on BNBchain is concentrated in two addresses on a certain trading platform, with 1.9 billion in one address.

The market value of USD1 was only around 130 million before May 1, 2025, but on May 1, it surged to 2.13 billion, increasing by nearly 2 billion overnight. This was mainly due to a 2 billion equity investment by Abu Dhabi investment company MGX in a certain trading platform, choosing USD1 as the payment currency.

Business Cooperation

WLFI has established cooperation with multiple institutions:

• Collaborating with the London encryption fund Re7, launching a USD 1 vault on the Ethereum lending protocol Euler Finance and the BNB Chain staking platform Lista.
• A major decentralized lending platform has approved a proposal to introduce USD1 in the Ethereum and BNBchain markets.
• USD1 has been listed on multiple centralized and decentralized trading platforms.

Competitive Advantages of World Liberty

The powerful influence of the Trump family in politics is its greatest advantage and may serve as a conduit for the interests of certain business and political entities. However, the main risks include:

• The Trump family's channels for利益输送 are numerous, WLFI may not necessarily be the first choice.
• WLFI Token is decoupled from the actual value of the project.
• The Trump family may abandon project operations after selling their tokens.

Background: Core Team and Financing Details

Core Team Background

The core team of WLFI comes from the political and business sectors, which is the source of its core competitiveness.

• Donald Trump and his three sons are the key figures of the project, with their titles on the official website changed from "Chief Encryption Advocate" and "Web3 Ambassador" to "Honorary Co-Founder" and "Co-Founder".
• Donald Trump's long-time business partner, New York real estate mogul Steven Witkoff, serves as the honorary co-founder.
• The technology and operations are managed by professionals from the encryption industry, such as former Paxos co-founder Richmond Teo.

Changes in the Trump family's equity in WLFI

The Trump family’s stake in WLFI has decreased from an initial 75% to 40%, likely transferred to other investors.

Financing history and investment institutions

Since its launch in September 2024, WLFI has raised over $700 million through multiple rounds of financing, with its valuation rapidly increasing.

The Trump family can receive 75% of the net revenue from the Token sales and 60% of the net profit from future businesses.

Token: Allocation Details, Functions and Protocol Revenue

Token distribution and unlocking details

The total supply of WLFI is 100 billion coins, and the distribution plan is as follows:

• Public offering 25%
• Private placement 10%
• Ecosystem 30%
• Team 15%
• Reserve 20%

Except for the public offering portion, the specific unlocking terms of other Tokens are not yet clear.

Token功能

WLFI is a purely governance Token, without any rights to dividends or income, and does not represent equity in the project company.

Protocol Revenue Distribution

The protocol income mainly belongs to the entity company behind WLFI, and the WLFI Token itself is not directly linked to business revenue.

Valuation: WLFI Long-term Value Expectation

Referring to a listed competitor's "Market Cap/Stability Coin Market Cap" ratio, the WLFI project's valuation may be between 1.452-1.672 billion dollars, corresponding to a token price of 0.0145-0.0167 dollars.

But WLFI may achieve a higher valuation due to the following factors:

• Early circulation is small, which may enjoy a premium.
• Great growth potential
• Political resources bring premiums
• The encryption market sentiment is more aggressive.
• May issue Token at the timing of passing the "Genius Act"

There are also risk factors:

• The stablecoin industry has a Matthew effect.
• Token lacks value capture
• The business volume may be inflated.
• May only be a short-term "white label" project
• The liquidity in the altcoin market is depleted.

The price movement of WLFI after its listing will depend on the progress of the "Genius Act" and whether the Trump family will use it as a medium for core interests exchange.