Key Highlights:
- WLFI futures started at $0.44, soon dropping below $0.25, reducing the Trump family-associated token’s market valuation from $44 billion to $24 billion.
- The futures market experienced trading volumes of $59 million and an open interest of $57 million, with a -35% funding rate indicative of strong bearish sentiment.
- This trading activity follows the lifting of WLFI’s non-transferable status in a governance vote in July, allowing for sales ahead of the upcoming spot distribution in September.
Futures linked to the World Liberty Financial (WLFI), associated with President Donald Trump, faced a significant decline of over 44% shortly after trading began on August 23 on the decentralized exchange Hyperliquid at $0.44. Traders opted for short positions, leading the price to plummet beneath $0.25 within hours due to considerable trading volume.
The introduction followed a period of uncertainty, initially marking the token as non-transferable until a governance vote in July overturned that decision, enabling its trading. The current pricing reflects a potential diluted valuation of $24 billion, significantly reduced from its earlier $44 billion valuation based on the total supply being capped at 100 billion.
The trading figures revealed a significant $59 million in volume, along with $57 million in open interest as reported by HyperLiquid. A negative funding rate at an annualized -35% suggests traders are betting heavily against the token. In a market that has seen rare negative funding rates lately, WLFI presents a classic signal of overvaluation as traders are willing to pay to maintain their short positions.
