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Trump family associated Token WLFI big dump 36%: 100% tariffs trigger market bloodbath, coin price falls 50% Slump from historical high.
Affected by the announcement from U.S. President Trump about a 100% additional tariff on Chinese goods, the crypto market experienced a flash crash, and the price of the crypto asset project World Liberty Financial (WLFI), associated with the Trump family, plummeted. WLFI fell by as much as 36% this week, with a 24-hour decline of 28.9%, reaching a low of $0.1046. The current price of the token is now 61% lower than its ATH of $0.3313 on September 1. This big dump triggered over $7 billion in on-chain liquidations, amplifying the sell pressure on risk assets like WLFI on mainstream CEX.
Macroeconomic Shock: Tariff Escalation Triggers a "Waterfall" Drop in WLFI Prices
The big dump of WLFI Token is a typical case of global macro-political risks transmitting to leveraged trading in the crypto market.
· Big dump market: WLFI price fell to 0.128 USD, with a daily low of 0.1046 USD. Although its 24-hour trading volume still reached 910 million USD, massive sell pressure caused its price to continue to decline.
· Compared to the peak: The current price of WLFI is 0.3313 USD, which is down more than 61% from its ATH on September 1.
· Chain liquidation: Following Trump’s announcement of a 100% tariff on Chinese goods starting November 1, market panic quickly spread. Bitcoin fell below $110,000 (intraday decline of 10% to 12%), while mainstream altcoins such as Ethereum, Solana (SOL), XRP, and Dogecoin experienced declines ranging from 15% to 30%. This severe price volatility resulted in the liquidation of long positions across the network, with liquidation amounts exceeding $7 billion, exacerbating the downward pressure in the spot market.
· Concentrated liquidity: The liquidity of WLFI Token is mainly concentrated on mainstream CEX, with the WLFI/USDT trading pair on mainstream CEX being the most prominent. Concentrated liquidity is more susceptible to chain sell-offs during market panic.
Family Ties: Project and Trump's Financial Connections
World Liberty Financial, although clarifying that it is not a political entity, has attracted attention in the market fluctuations due to its financial ties with President Trump and his family.
· Financial Connection: According to the disclosure on the World Liberty Financial official website, the project has a financial relationship with U.S. President Trump and his family through the affiliated entity DT Marks DEFI LLC.
· Equity and Token Distribution:
· DT Marks DEFI LLC owns approximately 38% of World Liberty Financial, Inc.2 holding company WLF Holdco LLC.
· DT Marks DEFI LLC and some members of the Trump family jointly hold 22.5 billion $WLFI Tokens and are entitled to 75% of the token sale proceeds according to the service agreement.
· Clarification of positioning: The website also clarifies that, despite the financial connections to the Trump family, World Liberty Financial is not a political entity or a campaign-related project.
Market Rotation: Altcoins Suffer Heavy Losses While AI Concepts Rise Against the Trend
While mainstream coins and WLFI experienced a big dump, other altcoins in the market also suffered widespread damage, but some AI concept Tokens attracted funds against the trend.
· Hard hit area: Story (IP) fell by 49% within 24 hours, with a weekly decline of over 55%. Internet Computer (ICP) and VeChain (VET) both dropped over 32%. Pump.fun (PUMP) and Arbitrum (ARB) also experienced a drop of about 30%.
· Capital rotation: Market observers point out that as large-scale liquidations are completed, traders are shifting their funds towards altcoins that have fundamental support.
· Counter-trend dark horse: The small market cap project ChainOpera AI (COAI) has performed remarkably, soaring an astonishing 1,785% in the past seven days, mainly due to the market's enthusiasm for the AI concept. Although its daily increase has moderated to 1.5%, its weekly performance has become the focus of the market.
Conclusion
The sharp fall of the WLFI Token once again highlights the significant market risks associated with linking Crypto Assets to high-risk political figures and macro events. The flash crash triggered by Trump’s tariffs is a brutal acceleration of the ongoing correction since its ATH in early September. Although the high trading volume of WLFI and the liquidity of mainstream CEX reflect the market's continued attention to it, whether this Token can find strong support in the range of $0.10 to $0.12 amid a lack of practical application scenarios and facing significant selling pressure will be a core issue that investors need to closely monitor in the coming days.
Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions with caution.