Its only purpose is to make the already wealthy even wealthier.
Written by: The Smart Ape
Translated by: AididiaoJP
Everyone in the crypto ecosystem has a short memory. Do you remember how we were brought down by the TRUMP meme coin? If you’ve forgotten, this WLFI looks just like TRUMP.
But compared to what they are doing with WLFI, that’s nothing. I’ve seen too many warning signs, and here are a few that should make you stay away from this project.
Team
When I saw that picture, my first thought was: why are there nine co-founders? The marketing is too deliberate.
None of the people on this team are convincing. It’s clear that the Trump family is here purely as a marketing tactic. There’s no indication that they are involved in operations or providing technical support. It’s obvious they don’t really understand this stuff, but they certainly know how to profit from it.
Zach Witkoff is under close scrutiny due to his political connections; his company helped orchestrate a $2 billion deal with MGX through the USD1 stablecoin. This raises concerns about “pay-to-play” privileges.
Chase Herro is better known in the crypto space. He calls himself an “internet scum,” has been imprisoned for drug charges, launched multiple rug-pull or zero-value crypto projects, and sells “get rich quick” courses. This is not the kind of co-founder you want in your project.
Then there’s Zach Folkman, whose background is very similar to Herro’s. He was involved with Dough Finance, which is associated with a major DeFi exploit. Overall, he is a controversial entrepreneur who even once held dating “pickup” workshops.
Among the nine co-founders, seven are sons of billionaires, and the other two have questionable histories. This is definitely not a crypto dream team.
Lies
The worst part is that they make you believe this is a project designed and operated by the Trump family. But that’s not true. They are just marketing figures to make you feel safe. Their own disclosures basically indicate this.
They even go further: the Trump family bears no responsibility on the contracts. Legally, they are not liable. If someone runs off with the funds tomorrow, the Trump family can legally distance themselves, and you cannot hold them accountable.
So who is responsible?
Not surprisingly, it’s Chase Herro and Zak Folkman, who are directly responsible for WLFI through their entity Axiom in Puerto Rico.
Although the Trump family is not legally liable, they hold 22.5% of the token supply and 75% of the revenue. The Witkoff family receives 7.5% of the supply and 25% of the revenue.
Herro and Folkman also get a portion of the supply (with no direct revenue sharing). This is basically two people who know how to exploit others’ interests striking a deal with the Trump family. The Trump family takes the largest slice of the cake, while these two get a small portion, but those small portions are still very large amounts for them.
WLFI Token
To be honest, this token is a joke. Six people hold 40% of the supply, which is blatant centralization. Over 60% of the tokens are held by fewer than 10 wallets, usually through multi-signature wallets.
At the token launch, only 25% of the supply was in circulation. Coupled with the highly concentrated supply in a few hands, this leads to extreme volatility and fragility.
In the first few hours, there were massive liquidations, with insiders dumping large amounts and cashing out hundreds of millions within just a few hours.
There is no transparency in the distribution. Most tokens were immediately available after launch, allowing insiders to sell freely at any time.
Utility? Basically none. It’s a “governance token,” but there’s nothing clear beyond that: no revenue sharing, no fee discounts, no earnings, nothing. They even explicitly state on the website that they can temporarily or permanently restrict your governance rights if they wish, so this isn’t even real governance.
Some of you might say there’s a proposal suggesting that 100% of the protocol fees be used for buybacks. If you cheer for that, remember that 60% of the supply is controlled by insiders. Either way, they win: if WLFI’s price goes up, the value of their tokens also increases, and they can sell at a higher price.
USD1 Token
USD1 is the stablecoin for WLFI, and just a glance at its logo shows it’s a joke.
Seriously, couldn’t they put a little more thought into it? It looks like something a 7-year-old made.
USD1 has a market cap of $2.7 billion, making it one of the largest stablecoins, but this comes from large institutional allocations, not real user demand. Its 93% value is held on Binance, which means there hasn’t been any real organic adoption.
What shocked me the most is that the wallet deploying USD1 on Solana also deployed a bunch of other shoddy tokens with almost no trading volume. They didn’t even bother to deploy USD1 cleanly with a new address but used an address already associated with junk tokens.
Website
If you still have doubts, the simplest solution is to read the disclosures on the website. This is the only place they are somewhat honest. You will quickly find that they are trying to shirk responsibility. Basically, they are telling you that this project is unstable, and you shouldn’t be surprised if something goes wrong.
The website is also filled with errors, broken links, typos, poor image formatting… The website UI is terrible, lacking professionalism, and shows a careless attitude.
Conclusion
WLFI is basically TRUMP 2.0, a highly centralized, useless, zero-innovation meme coin. Its only purpose is to make the already wealthy even wealthier. In a day of research, I found about twenty warning signs.
My advice is: stay away. If you make a profit, take the profit and leave.
The only reason this thing has trading volume is because of Trump’s endorsement. But to be honest, I’m pretty sure that if you asked Trump to explain what his own project is about, he wouldn’t be able to answer at all.
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