The WLFI token, associated with Donald Trump’s family, is experiencing the most aggressive buyback cycle in the project’s history. The team is trying to contain a prolonged decline in the asset, which is trading at almost half its launch price.
Massive $8M buyback in a few hours
According to Arkham, in one Friday evening the project spent $7.79 million on a buyback, collecting 46.56 million WLFI tokens at an average price of $0.1674. This is actually eight times larger than the September buyback, which was only $1.06 million.
The buyback was the result of a governance proposal adopted in September, where 98% of holders supported the idea of regular burns and buybacks to control supply.
Price rises, but token still deep in the red
Despite a revival in the WLFI market and a 13% gain over the past seven days, the price remains 48% below the listing price.
At the same time, estimates of the Trump family’s capital have also risen: after the unlocking of 24.6 billion tokens, the family’s share increased to approximately $5 billion, but the October market crash reduced the potential value of the assets by nearly $1 billion.
Arkham shows that the wallet associated with WLFI still holds more than $7.5 billion in tokens.
Experts warn: buyback strategy may hurt reserve sustainability
Phoenix One’s research indicates that aggressive use of the treasury to support the price may have long-term consequences. Key findings of the report:
- Buybacks create scarcity and support the price in the short term (this effect is confirmed by the nearly 10% token rise after the last operation).
- But large spending on buybacks can lead to a reduction in treasury liquidity by almost 30%, making it harder to maintain the ecosystem and fund integrations (lending, liquidity, infrastructure).
- WLFI’s reliance on the USD1 stablecoin custodian—primarily Jump Crypto—increases systemic risk: in calm periods this stabilizes the market regime, but in stressful moments it acts as a crash amplifier.
Risks of central custodian and speculative pressure
Phoenix One also notes that:
- Large fund movements by the custodian can significantly affect WLFI volatility, especially given the low liquidity on the secondary market.
- RWA and governance token investors are starting to factor in the risks of capital concentration with single custodians.
- There is a rise in speculative trades linked to large USD1 movements, increasing the likelihood of strong price swings.
WLFI profitability in question, but team remains active
The project’s revenue decline—from $40 million to $27.3 million in November—has heightened concerns about the team’s ability to maintain the current level of buybacks. However, WLFI claims that the supply will continue to be regulated depending on market conditions and platform objectives.
Meanwhile, the community is divided:
- some accuse the team of lack of transparency
- others support the treasury management strategy
- a third group demands an audit of WLFI reserves to ensure the project is not preparing for a large-scale exit
What’s next?
The token remains one of the most watched assets of the month. The $8 million buyback created short-term support, but analysts warn: without growth in the USD1 stablecoin ecosystem and an influx of new users, WLFI may face renewed selling pressure.
All attention now shifts to the next reserves report and the behavior of USD1 custodians—they may become key players in shaping the trend for the coming weeks.
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