Stay away from $WLFI, or you will become unhappy.

Written by: The Smart Ape

Compiled 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 now looks exactly like TRUMP.

But compared to what they did on WLFI, that's nothing at all. I've seen too many warning signs; here are a few that are sufficient to indicate that you should 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.

There is not a single person in this team who is convincing. It is clear that the Trump family is here purely as a marketing tactic. There are no signs that they are involved in operations or providing technical support. It is obvious that they do not really understand these things, but they certainly know how to profit from them.

Zach Witkoff has come under close scrutiny due to his political connections, as his company helped orchestrate a $2 billion deal with MGX through a USD1 stablecoin. This has raised concerns about "pay-to-play" privileges.

Chase Herro is better known in the crypto space. He calls himself an "internet scum," has been jailed for drug charges, launched several crypto projects that either ran away or went to zero, and sold "get rich quick" courses. This is not the type of co-founder you want in your project.

Then there is Zach Folkman, whose background is very similar to Herro's. He was involved with Dough Finance, a protocol related to a significant DeFi exploit. Overall, he is a controversial entrepreneur, and at one point even hosted dating "pick-up" workshops.

Among the 9 co-founders, 7 are sons of billionaires, and the other 2 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 the case. They are just marketing figures to make you feel safe. Their own disclosure basically confirms this.

Even further: The Trump family bears no liability under the contract. Legally, they bear no responsibility. If someone absconds with the money tomorrow, the Trump family can legally distance themselves, and you cannot hold them accountable.

So who is responsible?

Not surprisingly, it is 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 income. The Witkoff family receives 7.5% of the supply and 25% of the income.

Herro and Folkman also receive a portion of the supply (no direct revenue sharing). This is basically a deal made by two individuals who know how to exploit the interests of others, with the Trump family. The Trump family took the largest slice of the cake, while these two individuals received a small portion, but these small portions are still very significant amounts for them.

WLFI Token

To be honest, this token is a joke. 6 people hold 40% of the supply, which is blatant centralization. Over 60% of the tokens are held by fewer than 10 wallets, usually through multisig wallets.

When the token was launched, only 25% of the supply was in circulation. Additionally, the supply is highly concentrated in the hands of a few, leading to extreme volatility and fragility.

In the first few hours, there was a massive liquidation, with insiders selling off in large quantities, cashing out hundreds of millions of dollars in just a few hours.

There is no transparency in the allocation. Most tokens are available immediately after launch, allowing insiders to sell freely at any time.

Utility? Basically none. It is a "governance token," but other than that, there is nothing clear: no revenue sharing, no fee discounts, no earnings, nothing at all. They even make it clear 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 may say that there is a proposal suggesting that 100% of the protocol fees be used for buybacks. If you cheer for this, please remember that 60% of the supply is controlled by insiders. Either way, they win: if the price of WLFI goes up, the value of their tokens will also increase, and they can sell at a higher price.

USD1 Token

USD1 is the stablecoin of WLFI, and just by looking at its logo, you can tell it's a joke.

Seriously, can't they put a little more effort into it? It looks like something a 7-year-old would make.

The market capitalization of USD1 is $2.7 billion, making it one of the largest stablecoins, but this comes from large institutional allocations rather than real user demand. 93% of its value is stored on Binance, which means there is still no real organic adoption.

What shocked me the most is that a wallet deploying USD1 on Solana also deployed a bunch of other poorly made tokens with almost no trading volume. They didn't even bother to deploy USD1 cleanly with a new address, but instead used an address that was already associated with junk tokens.

Website

If you still have doubts, the simplest solution is to read the disclosure information on the website. This is the only area where 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 if something goes wrong, you shouldn't be surprised.

The website is also full of errors, broken links, typos, and poor image formats... The website UI is very poor, lacks professionalism, and shows a careless attitude.

Conclusion

WLFI is basically TRUMP 2.0, a highly centralized, utility-free, zero-innovation meme coin. Its sole purpose is to make the already wealthy even richer. In a day of research, I discovered about twenty warning signs.

My advice is: stay away. If you make a profit, take the profit and then leave.

The only reason this thing has trading volume is because Trump is endorsing it. 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.

Source: AididiaoJP