In-Depth Analysis: An Innovative Stablecoin Project with Potential for a Strong Push

On September 1st, a new cryptocurrency project World Liberty Financial will launch its governance token WLFI. At the core of this project is a stablecoin USD1, which claims to be fully backed by cash and short-term government bonds. WLFI, as a governance layer token, is designed with considerable innovation.

Project Overview

The USD1 stablecoin is the core product of World Liberty Financial. Unlike most stablecoins, the interest generated from the USD1 reserves does not flow to the company; instead, it is automatically used to repurchase and burn WLFI in the open market through smart contracts. This means that WLFI is not only a governance coin but also a deflationary asset linked to real-world cash flow.

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Issuance Details

WLFI will be launched on several major trading platforms on September 1, 2025. It is worth noting that only 5% of the supply will enter circulation at the time of the initial release. Based on a valuation of $20 billion, the tradable token value is approximately $1 billion. This extremely low circulation design may trigger significant price volatility.

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Institutional Participation

Multiple institutional investors have already made their layouts:

• A certain fund invested 100 million dollars at a price of approximately 0.125 dollars.
• A NASDAQ-listed company spent $1.5 billion to purchase 7.5% of the total supply at a price of $0.20.
• It is reported that the company has been approved for $750 million for the WLFI special acquisition.

The participation of these institutions provides strong financial support for WLFI.

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Potential Outbreak Factors

WLFI has three major factors that could trigger a surge:

1. Scarce circulation: A very low supply means that even moderate demand can trigger severe price fluctuations.
2. Built-in buying pressure: The profits generated from stablecoin reserves will be used to repurchase WLFI
3. Strong Narrative: Backed by political branding, institutional support, and government bond-related attributes

This design seems to be created for making a strong push in the market.

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Risk Warning

Although WLFI may experience a surge in the short term, its fully diluted valuation ( FDV ) still poses a risk of being overvalued in the long run. Investors should carefully assess the risks.

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Peripheral Projects

Two small projects Blockstreet (BLOCK) and Dolomite (DOLO) are focusing on the issuance of WLFI. They may experience more severe fluctuations based on the performance of WLFI, making them high-risk investment targets.

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Conclusion

WLFI is an innovative project with multiple attributes: a new type of stablecoin model, a political experiment, and a unique financial structure. Its extremely low circulation, strong capital support, and innovative mechanism design create conditions for a sharp rise in the short term. However, investors still need to prudently assess long-term risks.

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