World Liberty Financial has repurchased roughly $8 million worth of WLFI

WLFI, a token backed by President Donald Trump’s family, has repurchased roughly $8 million worth of the tokens, aiming to artificially cut the supply and mitigate the downtrend. On-chain data from Arkham revealed that the company spent over $7.79 million in five hours to acquire 46.56 million WLFI tokens at an average price of $0.1674.

Arkham’s historic data retrieved from the platform revealed that World Liberty Finance’s $8 million token repurchase is significantly larger than the September 27 $1.06 million buyback, which resulted in over $1.43 million worth of tokens being burned. 

The Trump family-linked crypto project voted to pass a governance proposal on September 19 to reduce the token’s outstanding supply through burns and repurchases, aiming to boost the token’s value, reported Cryptopolitan. The vote was unanimous with 98% support, while only 0.06% voted against it. WLFI previously said that passing the governance proposal serves as the cornerstone of the platform’s strategy for token repurchases. 

WLFI’s buyback pushes prices up 13%     

The repurchases came as the WLFI surged 13% over the past seven days, according to CoinMarketCap data. However, the price still remained 48% below its launch price. 

The president’s family’s stake also reportedly rose to roughly $5 billion following a schedule to unlock around 24.6 billion tokens at the beginning of September. 

A Reuters investigation also revealed that crypto initiatives linked to the Trump family generated approximately $802 million during the first half of 2025. The investigations found that the majority of the $802 million came from income related to the WLFI token. The income was generated solely from a passive yield on the WLFI USD stablecoin (USD1) and the Official Trump memecoin.  

However, the token took a hit after the October 10 market wipeout, reportedly reducing the company’s fortune from roughly $7.7 billion at the beginning of September to $6.7 billion by the end of November.  Meanwhile, data retrieved from Arkham showed that the WLFI-tagged wallet address still holds over $7.5 billion worth of tokens as of the time of publication.

Token’s repurchase casts doubt over long-term treasury sustainability

A study published by Phoenix One raised concerns about whether the company’s decision to allocate such a substantial amount to buybacks hurts long-term treasury sustainability. The report also noted that the token’s repurchasing strategy causes a notable scarcity, indicating that this may signal potential price support in the short term. An observed 10% post-buyback price surge substantiates this hypothesis. 

The study’s computational analysis also revealed that allocating massive amounts of treasury assets to buybacks could lead to the depletion of nearly 30% of treasury liquidity. That could, in turn, jeopardize funding for essential services, such as borrowing and lending integrations.

Meanwhile, WLFI’s reliance on USD1 custodians such as Jump Crypto also reshapes its volatility landscape. It also asserted that the combination of liquidity under a single custodian can stabilize the market during periods of calm, but also make potential downturns worse in unfavorable conditions. 

Observations from recent trends in trading also suggest that large movements by established custodians significantly influence price action. The report claimed that this can lead to notable volatility and speculative behavior when trading assets with lower market caps. Additionally, the sentiment of investors towards RWAs (real-world assets) and governance-based tokens may be influenced by perceived risks associated with the structures of custodianship.

The report further emphasized that the overall impact of the repurchases and Jump Crypto’s position in the market shows a compounded interplay. However, the interaction enhances efficiency in the market(s) while increasing systemic risk. The implications of Jump Crypto’s USD1 stablecoin dominance call for a closer look at how markets respond to changes in investor sentiment and the regulatory landscape. 

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