Bitget App
Trade smarter
Open
HomepageSign up
Bitget>
News>
WLFI Token Sees Drastic Decline Just One Day After Launch

WLFI Token Sees Drastic Decline Just One Day After Launch

Cointurk2025/09/02 21:30
By: Fatih Uçar
WLFI+2.12%SOL+0.83%ETH+1.37%
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.

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.
PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

ZEC surges 6 times in a month, what is driving this frenzy?

The halving event, privacy narrative, and endorsements from well-known institutions and investors have jointly driven ZEC to surpass its 2021 peak.

BlockBeats2025/10/27 16:53
Can x402 break the crypto concept of "hype equals peak"?

Unlike typical crypto concepts, x402 has attracted the attention of many Web2 tech giants, and these companies have already begun to adopt the protocol in practice.

ForesightNews 速递2025/10/27 16:44
When the Tide Goes Out: Who Is "Swimming Naked"? A Discussion on the Acquisition Fates of Clanker and Padre

Where does value accumulate? If value accumulates in equity entities, why buy tokens? Are all tokens just meme coins?

ForesightNews 速递2025/10/27 16:43

Trending news

More
1
BTC price eyes record monthly close: 5 things to know in Bitcoin this week
2
ZEC surges 6 times in a month, what is driving this frenzy?

Crypto prices

More
Bitcoin
Bitcoin
BTC
$115,478.02
+1.58%
Ethereum
Ethereum
ETH
$4,220.09
+3.59%
Tether USDt
Tether USDt
USDT
$1
+0.00%
XRP
XRP
XRP
$2.69
+2.58%
BNB
BNB
BNB
$1,147.73
+1.58%
Solana
Solana
SOL
$202.02
+1.37%
USDC
USDC
USDC
$0.9998
+0.00%
Dogecoin
Dogecoin
DOGE
$0.2053
+1.27%
TRON
TRON
TRX
$0.3001
+0.32%
Cardano
Cardano
ADA
$0.6821
+0.92%
How to buy BTC
Bitget lists BTC – Buy or sell BTC quickly on Bitget!
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new users!
Sign up now
Trade smarter