From the on-chain data and related situations, the probability of a big dump of the WLFI Token is relatively high recently, for the following reasons:

- Huge selling pressure from early investors: The cost for early investors of WLFI is extremely low, with the first batch of investors at a cost of $0.015 and the second batch at $0.05. With some restrictions lifted after the listing, they have a strong desire to take profits, and a large amount of tokens flooding into the market will create enormous pressure on the price.
- Token unlocking causes supply-demand imbalance: The circulating supply of WLFI accounts for only 25% of the total amount, but a large number of locked tokens will be unlocked in the next 1-2 months. Currently, market buying pressure is limited, and the selling chips far exceed the capital to absorb them, leading to a fall in price due to supply-demand imbalance.
- Large holders have concentrated positions and uncertainty: About 83% of the Tokens are controlled by entities related to the Trump family and early large holders. This highly concentrated holding structure makes prices easy to manipulate by a few individuals. For example, the Trump family holds 22.5 billion locked Tokens, and subsequent unlocking will impact the market. In addition, major investor Sun Yuchen's wallet address has been frozen by the project team. Although Sun Yuchen did not cause a big dump, this incident has raised market concerns about liquidity.
- Market sentiment and capital flow are negative: In the past day, WLFI led the market with a 9.9% fall, with $139 million flowing out of the derivatives market. Long positions are facing significant liquidation pressure, and on-chain sentiment is also leaning bearish. Overall trading volume has significantly decreased, indicating weak market momentum, which increases the likelihood of further price declines.
- The project lacks actual value support: The core pegged asset of WLFI, the USD1 stablecoin, experiences significant price fluctuations, making its value anchor unstable. Moreover, the governance function it promotes is essentially non-existent, and retail holders of WLFI cannot share in the profits, relying purely on speculation, making it difficult to maintain the price.