WLFI Proposes Buyback After Price Crash

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Good Morning.

WLFI’s debut showed the extremes of crypto markets: a steep price drop, a rapid buyback proposal, and a massive paper valuation for insiders. The launch highlights how token design, regulation, and market perception now move in lockstep.

In Today's Email:

• What Matters: WLFI Proposes Buyback After Price Crash 👀 

• Case Study: Impact of The SEC’s Liquid Staking Decision 🔎 

• Governance & Features: Bitget Migrates BGB to Morph ⏩️ 

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WHAT MATTERS

WLFI Proposes Buyback After Price Crash

State of play: World Liberty Financial has proposed a buyback and burn program that would use all fees from its protocol-owned liquidity on Ethereum, BSC, and Solana to repurchase $WLFI from the open market and permanently burn them.

• The aim is to reduce circulating supply, reward long-term holders, and strengthen token value over time.

• Fees from community or third-party liquidity providers are excluded, but the team may expand the program to other revenue sources if approved.

• All burn transactions would be transparent and recorded on-chain, with the community voting on whether to adopt the plan.

The proposal comes shortly after WLFI’s turbulent launch on major exchanges including Binance, Coinbase, and Upbit. The token debuted at $0.32 but plunged 34% to $0.21 before stabilizing around $0.23, with $2.5B in trading volume.

• Despite the drop, early investors remain deep in profit, including Justin Sun, whose holdings are still up roughly tenfold.

Why it matters: WLFI’s buyback plan redirects protocol revenue into token burns, aiming to ease launch volatility and reward long-term holders.

Our take: This is less about quick price recovery and more about restoring confidence. The program’s real impact depends on fee growth, given WLFI’s large supply and insider profits.

For builders and investors: Builders should note how revenue-to-token loops strengthen community trust. Investors should watch protocol usage, since meaningful burns hinge on sustained activity.

CASE STUDY

Impact of The SEC’s Liquid Staking Decision

Credits to The Block for the original podcast

Jito executives (Lucas Bruder & Thomas Uhm) said the SEC’s recent clarification that liquid staking tokens are not securities removes a major barrier for US firms.

• The move shifts oversight to the CFTC, allowing exchanges, custodians, and asset managers to handle LSTs without the risk of prosecution.

The regulatory green light opens the door for fully staked ETFs, which Jito argues would offer the most efficient product design.

• Institutions can now combine staking yields with futures basis trades to generate dollar-denominated returns, a safer alternative to risky yield farming.

• On Solana, higher yields and faster unbonding make LSTs particularly attractive.

• Jito is also pushing its BAM architecture to improve execution and mitigate MEV.

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INSIGHTS

Trump’s $5B WLFI Windfall

The Trump family’s crypto wealth surged by nearly $5B on paper after the launch of World Liberty Financial’s WLFI token.

• Holding 22.5B WLFI, their stake is valued at $5.6B at current prices, eclipsing the estimated $2.65B value of their real estate empire.

• WLFI debuted at $0.30 before slipping to $0.25, giving it a $6.8B market cap and $25B fully diluted valuation.

• Presales raised $590M, with the Trumps directly earning $442.5M.

• Their tokens remain locked under undisclosed vesting, making the valuation unrealized.

• Together with stakes in Trump memecoins, American Bitcoin, and Trump Media’s BTC holdings, the family’s digital assets now dwarf their traditional property portfolio.

FEATURES & GOVERNANCE UPDATE

Bitget Migrates BGB to Morph

Bitget will upgrade its BGB token into the native gas and governance asset of Morph, an Ethereum Layer 2 network, while keeping its exchange utilities like fee discounts and Launchpool access.

• The move transfers 440M BGB to the Morph Foundation, with half immediately burned and the rest vested for ecosystem growth.

• Morph will tie future burns to onchain activity, aiming to reduce supply from 1.1B to 100M long term.

• Morph, which currently holds $18M in TVL, will leverage Bitget’s 120M users to push consumer-facing “PayFi” apps.

• Bitget Wallet CEO Karry Cheung signaled more collaborations ahead.

Other notable feature updates:

• Lombard launched LBTC.

• Solayer launched sBridge.

• Aave Labs launched the Horizon RWA market.

• Jupiter launched the public beta of Jupiter Lend.

• Jump Crypto introduced Dual Flow Batch Auctions (DFBA).

QUICK BITES

• SharpLink adds $177M worth of Ethereum.

• Coinbase launches futures trading for index.

• Crypto exchange volume tops $1.8T in August.

• WLFI proposes buyback program for long-term holders.

• ZachXBT says 100+ crypto influencers hide paid promos.

• Benchmark defends Strategy’s equity sales for BTC accumulation.

• Trump family's crypto wealth balloons by $5B following WLFI debut.

• Bitget to upgrade BGB on Morph as native gas and governance token.

• SEC & CFTC's new joint guidance 'opens the door' for crypto adoption.

• Nasdaq-listed CIMG completes $55M raise for bitcoin treasury initiative.

• Hyperliquid posts highest monthly revenue in August, surpassing $100M.

• Bitcoin ETFs see $332M in inflows, ending Ethereum ETF flow dominance.

• Hong Kong’s Fosun tokenizes shares of medical company valued at $328M.

• Crypto IPO market heats up with Figure seeking $500M, Gemini over $300M.

NOTEWORTHY READS & MEME

• Basit’s read on The Smell of Free Money.

• Jaehaerys.eth’s read on Bridgeless Composability.

• Nic Carter’s read on Situating Stablecoins in the Payments Landscape.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.