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WLFI Token Sees Drastic Decline Just One Day After Launch

WLFI Token Sees Drastic Decline Just One Day After Launch

CointurkCointurk2025/09/02 21:30
By:Fatih Uçar

In Brief WLFI token significantly dropped a day post-launch, despite increased trading volume. A new proposal suggests using liquidity pool fees for buyback and permanent token burning. Experts question the strategy’s impact, citing uncertainties in economic influence.

WLFI token experienced a significant drop just a day after its Labor Day launch, despite witnessing a nearly tenfold increase in trading volume. The governance token fell from $0.33 to $0.21 late Monday before stabilizing around $0.245. Data from CoinGecko revealed a trading volume spike from approximately $259 million at launch to $2.5 billion.

Fluctuations in WLFI Price

Compared to its initial price of $0.28, WLFI’s value has decreased by about 14%. However, it’s still enjoying a substantial increase for early whitelist investors who acquired tokens at approximately $0.015.

In light of recent developments, a new proposal has emerged in the project’s governance forum. This proposal requests that all fees from the project’s liquidity pools be directed towards buyback and permanent token burning operations.

According to the proposal, all fees generated from protocol-owned liquidity on Ethereum $4,322 , BSC, and Solana $208 would be used to purchase WLFI tokens from the market. These tokens would then be sent to a burn address, permanently reducing the supply.

If approved, WLFI will collect fees from its liquidity positions, use those fees to buy tokens from the market, and send those tokens to a burn address.

Could the New Proposal Make an Impact?

However, some suggest the proposed strategy might not significantly impact WLFI’s token economy. Min Jung, a senior analyst at quantitative trading firm Presto, mentioned that “The buyback and burn model can provide structural support for the token price, but given WLFI’s large speculative valuation and relatively low circulating supply, its impact could be limited.”

Conversely, the sharp loss in value just hours after WLFI’s launch highlights the risk factor of first-day volatility in cryptocurrency projects. Yet, the buyback and burn strategy proposed through governance aims to bolster token value by reducing supply.

Moreover, this strategy could lend an air of corporate discipline to the project in investors’ eyes. However, according to experts, the sustainability of this impression will depend on the project’s real-world performance and adoption level.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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