Recently, a cryptocurrency project related to the Trump family, WLFI (World Liberty Financial), has garnered widespread attention in the market. This project touts Trump as the "Chief Encryption Advocate" and his three sons as Web3 ambassadors, but it is worth noting that family members of Trump are not formal employees of the company.

Since its launch, WLFI has performed poorly, with the price rapidly dropping by half, raising investors' doubts about its prospects. However, the technical team's strength of the project cannot be underestimated, including industry veterans such as the founder of Paxos and the co-founder of Dolomite. The project plans to launch the stablecoin USD1 and a lending protocol based on Aave V3, and recently increased its holdings of TRX worth $2.6 million, bringing its total assets to over $4 billion, indicating a relatively ample capital reserve.

From the perspective of token economics, the total supply of WLFI is 100 billion tokens, but currently only 27% is in circulation. Early investors have a very low cost, resulting in a significant premium compared to the current price. The Trump family holds 22.5% of the tokens, while 80% of the tokens have not yet been unlocked, which could cause considerable selling pressure in the future.

If we exclude the premium brought by the Trump concept, the net asset value of WLFI is approximately $0.04, with a weighted cost of around $0.03. Considering these factors, its reasonable valuation range should be between $0.06 and $0.10. However, the current price of $0.29 already includes a quite high market expectation premium.

Investors need to be aware of the risks, including: liquidity risk, as the initial circulation volume is only 5%, with a large number of tokens not unlocked, making the price easy to manipulate; lack of transparency in governance, as the Trump family holds a significant share but has not officially participated in operations, raising questions about profit distribution; and policy risk, as the U.S. SEC is tightening regulations on politically related encryption projects, creating uncertainty.

For potential investors, it is not recommended to chase the price at the current level, and caution should be exercised regarding the risk of a pullback. If the price pulls back below $0.1, a small position for exploratory investment can be considered. In the long term, it is necessary to closely monitor the actual progress of its lending protocol and the TVL (Total Value Locked) data before deciding whether to increase investment.

Overall, although the WLFI project is backed by the aura of the Trump family, its actual value and potential risks need to be carefully assessed by investors. In the cryptocurrency market, the celebrity effect often leads to short-term hype, but long-term success still relies on the project's actual implementation and value creation.