Momentum 6 partner shares $WLFI investment logic: Why dare to bet tens of millions of dollars?

As the Trump family crypto project $WLFI is about to launch, market attention is heating up. Dennis Liu, General Partner at Momentum 6, delves into the investment value of $WLFI in this article. He not only analyzes in detail the stablecoin mechanism of the token pegged to US Treasuries and its strong institutional backing, but also publicly discloses his seven-figure investment position and $1 price target. The author believes that $WLFI, which integrates political, financial, and highly speculative attributes, is one of the most noteworthy events of this cycle. The following is the original article, compiled by PANews.

What is $WLFI? Why is it important?

$WLFI is the official Trump token, with co-founders including Eric Trump, Donald Trump Jr., and Barron Trump. Trump himself was listed as part of the team even before taking office as president. This project is not a simple memecoin, but is closely tied to the regulated stablecoin USD1. USD1 is backed by US Treasuries, giving $WLFI both political tool and financial attributes.

Position and Strategy

I have been buying $WLFI through pre-market futures, with my first entry price at $0.40, then adding at $0.30, and making large purchases in the $0.22 to $0.24 range. My average entry cost is $0.28, while the current price is $0.25. Yes, you can even enter now at a cheaper price than I did.

The key to my strategy is using only 1x leverage, which means no leverage at all. The pre-market is highly volatile, and even 1.5x leverage could get you liquidated. Using 1x leverage is essentially the same as spot trading, with no liquidation risk and no funding rate to pay. This is why I can comfortably hold a seven-figure USD long position in $WLFI.

Price Target and Institutional Positioning

My price target is for $WLFI to reach $1 (corresponding to a fully diluted valuation of 100 billions USD).

For reference, a previous Trump memecoin, which lacked utility and was barely promoted, still reached a peak FDV of 73 billions USD. In contrast, $WLFI is not only officially recognized, but also pegged to US Treasuries and launched during Trump's presidency, all of which greatly enhance its credibility and potential ceiling.

Institutional investors have also positioned themselves in advance:

• DWF Labs invested $25 millions at a price of $0.10;
• Aqua One Fund invested $100 millions at a price of $0.125;
• Nasdaq-listed ALT5 Sigma invested $1.5 billions at a price of $0.20.

Compared to the current price of $0.25, this is only 25% higher than the investment price of the Nasdaq-listed company.

Diversified Investment Strategy

In addition to holding directly, I am also running a $WLFI trading bot on Pionex. The grid range is set between $0.10 and $0.42. Within 22 hours, it has already brought me a 2.5% profit (annualized return as high as 960%). For investors unwilling to hold long-term, volatility alone can capture considerable returns.

In addition, there are two higher-risk ecosystem projects worth watching:

• One is $BLOCK (Blockstreet), founded by the CIO of $WLFI, which is the launchpad for USD1;
• The other is $DOLO (Dolomite), led by the CTO of $WLFI, which is the DeFi service provider for USD1.

These projects have smaller market caps, meaning greater potential upside, but also higher risk.

If the price of $WLFI doubles, the prices of these two tokens could rise 3 to 4 times; but if $WLFI falls, their declines could be even more severe. Therefore, achieving balance in your portfolio is crucial.

Overall, $WLFI is undoubtedly one of the most significant token events of this cycle. Its identity is not just a narrative, but a combination of political influence, financial attributes, and speculative value. As the official Trump token, with institutional backing and a stablecoin relationship pegged to US Treasuries, it has become a focal point of intense market attention.