Trump-backed WLFI token plunges 30% amid regulatory probes and bitcoin sell-offs
World Liberty Financial (WLFI), a cryptocurrency token linked to a Trump-family-backed stablecoin project, is facing growing scrutiny and market turbulence. Its price has dropped by 2.72% in a day and over 30% in recent weeks, now trading near $0.0990—well below former support levels. The decline comes as U.S. lawmakers investigate a $500 million investment tied to foreign sovereign capital, raising questions about transparency and market stability.
WLFI's troubles began with a sharp sell-off, pushing prices below a three-month range. The token lost key support zones between $0.106 and $0.176, with the former demand area of $0.10–$0.115 now acting as resistance. Traders expect a brief rebound to test this zone before another potential drop toward $0.086.
The pressure follows reports that WLFI sold $50 million in bitcoin, signalling weak market confidence. This move coincided with broader crypto downturns, including bitcoin's bearish trends since late 2023 and spot ETF outflows. Adding to concerns, WLFI transferred 235 million tokens to Binance during the decline, reinforcing seller dominance.
Regulatory scrutiny is intensifying. California Representative Ro Khanna launched an investigation into the $500 million Abu Dhabi-linked deal, which allegedly secured a 49% stake in WLFI before President Trump's inauguration. Trump has denied knowledge of the transaction. WLFI now has until 1 March to provide requested documents to investigators.
The token's struggles also tie to its planned USD1 stablecoin, set for a February 2026 launch. Market uncertainty and geopolitical risks continue to weigh on investor sentiment.
WLFI's price remains under heavy bearish pressure, with technical levels and regulatory probes adding to the downturn. The token's short-term outlook hinges on whether it can hold above $0.086, while long-term stability depends on resolving investigations and broader stock market today conditions. Investors are watching closely as the 1 March document deadline approaches.
