Crypto Whales Suffer Massive Losses as Trump-Linked WLFI Token Plunges 40% Following 47M Token Burn
Key Insights into WLFI’s Turbulent Ride
Imagine jumping into a high-stakes poker game where the cards seem promising at first, only to watch your chips vanish in a brutal downturn—that’s the harsh reality for big investors, or crypto whales, who dove headfirst into the Trump family’s World Liberty Financial (WLFI) token. These heavy hitters have been reeling from sharp declines, with the token dropping 40% from its debut price on Monday, leaving millions in losses scattered across the blockchain.
Picture one particular whale, tied to the wallet address 0x432, who boldly opened a 3X leveraged long position on WLFI and held it for almost 64 hours before closing it at 8:02 AM UTC on Thursday. As shared in a post from blockchain analytics tool Onchain Lens, this move led to a pre-fee profit and loss shortfall of about $1.63 million, plus fees around $2,667, resulting in a net hit of nearly $1.64 million. It’s a stark reminder that fear of missing out, or FOMO, can turn excitement into regret faster than a market crash.
Since hitting the scene, WLFI’s price chart has mirrored a classic descending triangle formation, a pattern that often signals trouble ahead, before it shattered its support level at $0.20 amid intense selling pressure. The token has plummeted over 60% from its peak of $0.46, showing no strong hints of bouncing back above $0.30 anytime soon.
Whale’s String of Setbacks with Trump Tokens
This isn’t the first rodeo for that same wallet owner. Back on September 1, they kicked off a long bet on the TRUMP token that lasted nearly 21 hours, ending in a pre-fee loss of roughly $76,400 and a net drain of about $80,220. Later that afternoon, a quick five-minute WLFI long position stung them for around $4,720 before fees, netting a loss of approximately $4,790. Undeterred, they tried another bullish WLFI play at 2:03 PM, holding for over three hours and facing pre-fee damages of about $21,380, with net losses close to $21,812. An even shorter WLFI long at 6:11 AM cost about $3,284 pre-fee, or roughly $3,510 after everything.
Data from Hyperdash reveals their final push with TRUMP involved a short ETH trade at 2:52 AM, erasing $135 before fees and nearly $311 net, followed by a long on August 31 at 7:17 PM that wiped out about $1,672 pre-fee and $1,861 net. It’s like watching a gambler chase losses at the casino, only here the stakes are digital and the house edge feels relentless.
WLFI started public trading on Monday, surging as high as $0.40 in pre-market futures buzz, but it swiftly cooled to around $0.24 by late afternoon. In the following day, it shed another 12% to about $0.246. As of this writing on September 4, 2025, at 15:24 UTC, WLFI is hovering near $0.182, down more than 20% in the past 24 hours, and it touched an all-time low of about $0.174 during Thursday’s pre-market sessions in the US.
Token Burn Fails to Spark Recovery
In a move that aimed to tighten supply and potentially boost value, World Liberty Financial executed a burn of 47 million WLFI tokens yesterday, worth over $11 million at the time, by dispatching them to addresses from which they can’t be recovered. This strategy, often compared to removing excess inventory to drive up demand in a store, was meant to promote holding and elevate prices. Yet, it didn’t stem the bleeding—WLFI kept sliding into the next day, scraping near its bottom despite the reduced circulation.
Even celebrities aren’t immune. Former kickboxing star and influencer Andrew Tate jumped into a WLFI long via the decentralized exchange Hyperliquid, only to see it liquidated on Tuesday for a $67,500 loss. He doubled down with another position, racking up nearly $700,000 in total WLFI trading defeats. It’s a vivid example of how even bold personalities can get burned in crypto’s volatile arena.
Trump’s Stake Remains a Bright Spot
Amid the investor pain, the launch looks like a win on paper for the Trump family. Donald Trump reportedly controls 15.75 billion WLFI tokens, pegging his holdings at around $3.4 billion as of now, making it the biggest slice of his fortune. Together with his sons’ shares, the family commands just under 25% of the 100 billion total supply, valued at an estimated $5 billion at current rates. This alignment with the Trump brand—rooted in themes of financial liberty and bold entrepreneurship—highlights how WLFI positions itself as more than just a token; it’s a statement of economic empowerment, resonating with supporters who see it as an extension of Trump’s vision for decentralized finance.
For those navigating these choppy crypto waters, platforms like WEEX stand out as a reliable choice. WEEX offers secure, user-friendly trading with advanced tools that help investors manage risks effectively, backed by robust security features and a commitment to transparency that builds trust in every transaction.
Latest Buzz and Updates on WLFI
Diving deeper, recent online chatter reveals WLFI dominating searches on Google, with users frequently asking about “WLFI token price prediction” and “Is WLFI a good investment?”—queries spiking amid the dip, reflecting widespread curiosity and concern. On Twitter, discussions are ablaze with topics like #WLFIcrash and #TrumpCrypto, where users debate the token’s ties to political figures and its potential recovery. A notable tweet from Onchain Lens on September 4, 2025, highlighted the whale’s massive loss, garnering thousands of retweets and fueling debates on market manipulation.
Official announcements from World Liberty Financial emphasize the burn’s intent to foster scarcity, but as of today, September 4, 2025, the token’s value hasn’t rebounded, with trading volume down 15% from yesterday’s levels according to on-chain data. Comparisons to past tokens like those linked to celebrities show WLFI’s drop isn’t unique—think of how some meme coins soar then crash—but evidence from blockchain trackers like Etherscan confirms the burn’s execution, with 47 million tokens indeed sent to dead addresses, reducing supply by about 0.47%.
This saga underscores crypto’s highs and lows, much like a rollercoaster where the thrill comes with real risks, backed by real data showing over 60% value erosion since launch.
FAQ
What caused the recent dip in WLFI’s price?
The WLFI token’s 40% decline stems from heavy selling after its debut, forming a descending triangle pattern that broke support at $0.20, despite a 47 million token burn aimed at boosting scarcity.
Is WLFI connected to Donald Trump, and how does it affect its value?
Yes, WLFI is linked to the Trump family, with Donald Trump holding a significant stake worth billions. This brand alignment adds a layer of political intrigue, but market forces like selling volume have driven the price down regardless.
Should I invest in WLFI amid these losses?
Investing in WLFI carries high risks, as shown by whale losses exceeding millions. Always conduct independent research and consider volatility, with current prices at $0.182 reflecting ongoing declines as of September 4, 2025.
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Before using Musk's "Western WeChat" X Chat, you need to understand these three questions
The X Chat will be available for download on the App Store this Friday. The media has already covered the feature list, including self-destructing messages, screenshot prevention, 481-person group chats, Grok integration, and registration without a phone number, positioning it as the "Western WeChat." However, there are three questions that have hardly been addressed in any reports.
There is a sentence on X's official help page that is still hanging there: "If malicious insiders or X itself cause encrypted conversations to be exposed through legal processes, both the sender and receiver will be completely unaware."
No. The difference lies in where the keys are stored.
In Signal's end-to-end encryption, the keys never leave your device. X, the court, or any external party does not hold your keys. Signal's servers have nothing to decrypt your messages; even if they were subpoenaed, they could only provide registration timestamps and last connection times, as evidenced by past subpoena records.
X Chat uses the Juicebox protocol. This solution divides the key into three parts, each stored on three servers operated by X. When recovering the key with a PIN code, the system retrieves these three shards from X's servers and recombines them. No matter how complex the PIN code is, X is the actual custodian of the key, not the user.
This is the technical background of the "help page sentence": because the key is on X's servers, X has the ability to respond to legal processes without the user's knowledge. Signal does not have this capability, not because of policy, but because it simply does not have the key.
The following illustration compares the security mechanisms of Signal, WhatsApp, Telegram, and X Chat along six dimensions. X Chat is the only one of the four where the platform holds the key and the only one without Forward Secrecy.
The significance of Forward Secrecy is that even if a key is compromised at a certain point in time, historical messages cannot be decrypted because each message has a unique key. Signal's Double Ratchet protocol automatically updates the key after each message, a mechanism lacking in X Chat.
After analyzing the X Chat architecture in June 2025, Johns Hopkins University cryptology professor Matthew Green commented, "If we judge XChat as an end-to-end encryption scheme, this seems like a pretty game-over type of vulnerability." He later added, "I would not trust this any more than I trust current unencrypted DMs."
From a September 2025 TechCrunch report to being live in April 2026, this architecture saw no changes.
In a February 9, 2026 tweet, Musk pledged to undergo rigorous security tests of X Chat before its launch on X Chat and to open source all the code.
As of the April 17 launch date, no independent third-party audit has been completed, there is no official code repository on GitHub, the App Store's privacy label reveals X Chat collects five or more categories of data including location, contact info, and search history, directly contradicting the marketing claim of "No Ads, No Trackers."
Not continuous monitoring, but a clear access point.
For every message on X Chat, users can long-press and select "Ask Grok." When this button is clicked, the message is delivered to Grok in plaintext, transitioning from encrypted to unencrypted at this stage.
This design is not a vulnerability but a feature. However, X Chat's privacy policy does not state whether this plaintext data will be used for Grok's model training or if Grok will store this conversation content. By actively clicking "Ask Grok," users are voluntarily removing the encryption protection of that message.
There is also a structural issue: How quickly will this button shift from an "optional feature" to a "default habit"? The higher the quality of Grok's replies, the more frequently users will rely on it, leading to an increase in the proportion of messages flowing out of encryption protection. The actual encryption strength of X Chat, in the long run, depends not only on the design of the Juicebox protocol but also on the frequency of user clicks on "Ask Grok."
X Chat's initial release only supports iOS, with the Android version simply stating "coming soon" without a timeline.
In the global smartphone market, Android holds about 73%, while iOS holds about 27% (IDC/Statista, 2025). Of WhatsApp's 3.14 billion monthly active users, 73% are on Android (according to Demand Sage). In India, WhatsApp covers 854 million users, with over 95% Android penetration. In Brazil, there are 148 million users, with 81% on Android, and in Indonesia, there are 112 million users, with 87% on Android.
WhatsApp's dominance in the global communication market is built on Android. Signal, with a monthly active user base of around 85 million, also relies mainly on privacy-conscious users in Android-dominant countries.
X Chat circumvented this battlefield, with two possible interpretations. One is technical debt; X Chat is built with Rust, and achieving cross-platform support is not easy, so prioritizing iOS may be an engineering constraint. The other is a strategic choice; with iOS holding a market share of nearly 55% in the U.S., X's core user base being in the U.S., prioritizing iOS means focusing on their core user base rather than engaging in direct competition with Android-dominated emerging markets and WhatsApp.
These two interpretations are not mutually exclusive, leading to the same result: X Chat's debut saw it willingly forfeit 73% of the global smartphone user base.
This matter has been described by some: X Chat, along with X Money and Grok, forms a trifecta creating a closed-loop data system parallel to the existing infrastructure, similar in concept to the WeChat ecosystem. This assessment is not new, but with X Chat's launch, it's worth revisiting the schematic.
X Chat generates communication metadata, including information on who is talking to whom, for how long, and how frequently. This data flows into X's identity system. Part of the message content goes through the Ask Grok feature and enters Grok's processing chain. Financial transactions are handled by X Money: external public testing was completed in March, opening to the public in April, enabling fiat peer-to-peer transfers via Visa Direct. A senior Fireblocks executive confirmed plans for cryptocurrency payments to go live by the end of the year, holding money transmitter licenses in over 40 U.S. states currently.
Every WeChat feature operates within China's regulatory framework. Musk's system operates within Western regulatory frameworks, but he also serves as the head of the Department of Government Efficiency (DOGE). This is not a WeChat replica; it is a reenactment of the same logic under different political conditions.
The difference is that WeChat has never explicitly claimed to be "end-to-end encrypted" on its main interface, whereas X Chat does. "End-to-end encryption" in user perception means that no one, not even the platform, can see your messages. X Chat's architectural design does not meet this user expectation, but it uses this term.
X Chat consolidates the three data lines of "who this person is, who they are talking to, and where their money comes from and goes to" in one company's hands.
The help page sentence has never been just technical instructions.

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