WLFI Token Collapse: Is This DeFi Token Repeating TRUMP’s 90% Crash Playbook?

Donald Trump–linked WLFI (World Liberty Financial) token has suffered a brutal start. In less than three days since listing on Binance, WLFI has collapsed by over 64%, falling from highs above $0.46 to around $0.17 on Sept. 4.

WLFI Mirrors TRUMP’s Infamous Debut

Interestingly, WLFI may be following the same trajectory as the Official Trump (TRUMP) memecoin, which endured a staggering 90% crash in its first 70 days before finding a long-term floor.

Price action paints a striking resemblance. TRUMP launched in early 2025 with a wave of hype around Donald Trump’s presidential campaign and NFT ventures.

Within weeks, the token went parabolic before insiders reportedly began offloading holdings. By March, TRUMP had lost nearly all of its gains, bottoming near $7 after peaking above $75.

WLFI is showing a similar pattern. After an explosive opening candle, volumes have dried up while the price continues to grind lower to new record lows.

Adding to the bearish fractal, WLFI faces allegations that Trump-linked partners and early backers are unloading tokens on retail traders.

Last year, these so-called “insiders” bought WLFI in private sales for as little as half a cent.

JUST IN: On-chain data shows insiders are already dumping millions of $WLFI tokens.

This is a blatant pump-and-dump scam launched today, and @EricTrump is shamelessly shilling it to his sheep. pic.twitter.com/MRxEUpsqEe

— Jacob King (@JacobKinge) September 1, 2025

This echoes earlier complaints around TRUMP, where Trump’s business partners were accused of cashing out while marketing the coin as a patriotic, community-driven project.

So far, neither Trump’s campaign nor WLFI’s promoters have provided transparent disclosures about insider allocations or lock-ups, fueling further skepticism.

TRUMP Found a Bottom: Will WLFI Follow Suit?

For speculators, the irony is that TRUMP’s early collapse eventually set the stage for a powerful rebound once the dust settled. After its March low, TRUMP rebounded more than 100% as new retail waves arrived and Trump’s election victory narrative took hold.

WLFI’s 64% wipeout may thus tempt contrarians looking for an early entry point, betting that, just like TRUMP, the token could stabilize and later revive on political or community hype.

Analyst Scott Melker says WLFI “will do exceptionally well”

Still, without transparency on tokenomics and insider control, the risk of deeper declines remains high.

A Short-Term Buying Opportunity Next?

WLFI is testing the lower trendline of its prevailing descending channel pattern, with levels around $0.172. On Monday, it bounced from the same lower trendline, rallying 24.75% before finding resistance at the channel’s upper trendline.

Such a bounce could push the WLFI token price to over $0.20 in the coming days. A break below the lower trendline, on the other hand, will send WLFI into a bottom discovery mode, similar to how TRUMP memecoin did.