Destruction of 47 million WLFI, market rescue or just harvesting retail investors? Only insiders profit, while retail investors are left with nothing?

The Trump family's $WLFI Token recently made a significant move by "destroying 47 million tokens." They say it's for market rescue, but upon closer investigation, it is clearly an old tactic of "insiders harvesting retail investors, causing individual investors to incur losses!"

First, let me explain this destruction operation. The project claims to have destroyed 47 million tokens, which sounds good, but when you calculate it in detail, the total token amount is 100 billion, and after the destruction, 99.953 billion remain, meaning the circulation has hardly changed. It's like saying you originally had 1000 yen in your pocket and lost 50 sen, and then claiming you took a huge loss. Ironically, they emphasize that "the tokens unlocked from the vault will not be sold publicly and will all be decided by community voting."

But community voting? Don’t say anything sweet! The Trump family directly or indirectly controls over 20 billion Tokens, and in the voting system, one wallet can cast a maximum of only 5% of the votes. Is this decentralized governance? Clearly, it’s a fake democracy with just the "signboard changed"!

Recent records show that WLFI plummeted by 25% on its first day of listing, with its market value dropping directly from $40 billion to $5.4 billion. Why is that? It's because the project side stated at the last moment, "the circulating Token is not 5 billion but 25 billion!" With a token amount five times higher than market expectations, the trust of retail investors was shattered. Investors raised their voices in forums, questioning whether this is a transparent project, with the qualifications of "early supporters" being vague and data suddenly changing. Clearly, this is an "information black hole!"

What is even more frustrating is that the project side has set up a long-term plan of "buyback + burn" and claims that all fees will be used for buybacks and burns. But the question is, how much are these fees? Are they enough to fill the gap of 25 billion Tokens? I couldn't help but laugh; while it may stir up excitement in the short term, in the long run, it's nothing more than a band-aid solution!

Speaking of power structures, the Trump family holds 75% of the net proceeds from the token sale through the affiliated company DT Marks DEFI, LLC. Alt5 Sigma Corp. also takes a 7.5% share of the tokens, and this company has close ties to WLFI executives. Even more surprisingly, Alt5's stock price plummeted in tandem with WLFI, almost dropping by 50% in just two days. Is this an independent project? Clearly, it is a profit chain where "if one prospers, all prosper, and if one suffers, all suffer!"

In terms of the ecosystem, the market value of WLFI's stablecoin USD1 is $2.7 billion, which is not insignificant, but it is a small presence compared to established stablecoins like USDT and USDC. Regulatory scrutiny is also more troublesome, and in addition to the political labeling of the Trump family, large-scale investments from abroad have become direct targets of regulatory authorities. Congress has already begun monitoring and is investigating whether they have influenced the SEC's law enforcement. The timing of Sun Yuchen's $75 million investment is oddly exquisite, and the suspicion of "profit exchange" cannot be denied!

Finally, one more risk. The UAE sovereign fund has invested $2 billion through USD1 in an overseas exchange that was previously fined $4.3 billion, which may violate the constitutional provision that "the president shall not receive benefits from foreign governments." If regulators take action, ESG funds will surely shy away, and institutional investor money will not come in.

Currently, the price of WLFI is fluctuating around $0.22, and while some people feel that a fully diluted valuation of $20 billion is already incredibly high, others dream of its "long-term value." However, in my view, whether this project will succeed depends on whether it can step out of Trump's halo, build a true ecosystem, and balance decentralization with centralized management. Otherwise, no matter how many tokens are destroyed, it is just a new way of "scalping retail investors!"

Everyone, please open your eyes! Is this operation a market rescue, a performance, sincerity, or strategy? Everyone must have the answer in their hearts. Please feel free to share your thoughts.