Original Source: Dennis Liu, Partner at Momentum 6

Original Translation: Yuliya, PANews

With the Trump family's crypto project $WLFI set to launch soon, market attention is heating up. Dennis Liu, a Partner at Momentum 6, delves deep into the investment value of $WLFI in this article. He not only analyzes in detail the token's stablecoin mechanism pegged to U.S. Treasury bonds and strong institutional endorsement but also discloses his seven-figure investment position and a $1 price target. The author believes that $WLFI combines political, financial, and highly speculative attributes, making it one of the most noteworthy events of this cycle. Below is the original article, translated by PANews.

What is $WLFI? Why is it Important?

$WLFI is Trump's official token, with co-founders including Eric Trump, Donald Trump Jr., and Barron Trump. Trump himself had been part of the team before assuming the presidency. This project is not a simple memecoin but is closely tied to the regulated stablecoin USD1. USD1 is backed by U.S. Treasury bonds, making $WLFI a political tool with financial attributes.

On September 1, $WLFI will be listed on all major trading platforms, including Binance, and futures contracts have also been launched. Following the presale arrangement, 20% of the tokens can be immediately unlocked for circulation, with the remaining 80% entering a locking mechanism. For most traders, this is the first opportunity to gain exposure to $WLFI.

Position and Strategy

I have been buying $WLFI through the pre-market futures market, initially buying at $0.40, adding more at $0.30, and heavily buying in the $0.22 to $0.24 range. My average entry cost is $0.28, while the current price is $0.25. Yes, you can even enter at a cheaper price than me now.

The key to my strategy is to use only 1x leverage, meaning no leverage. The pre-market prices are highly volatile, and even 1.5x leverage could liquidate you. Using 1x leverage is essentially the same as spot trading, with no liquidation risk and no need to pay funding rates. This is why I can safely hold a seven-figure USD $WLFI long position.

Price Target and Institutional Positioning

My price target is for $WLFI to reach $1 (corresponding to a fully diluted valuation of $1 trillion).

For reference, a previous memecoin launched by Trump, which lacked utility and had minimal marketing, still managed to reach a peak FDV of $73 billion. In contrast, $WLFI not only has official recognition but is also pegged to the US Treasury and was launched during Trump's presidency, significantly boosting its credibility and potential upside.

Institutional investors have also positioned themselves early:

· DWF Labs invested $25 million at a price of $0.10;

· Aqua One Fund invested $100 million at a price of $0.125;

· NASDAQ-listed company ALT5 Sigma invested $1.5 billion at a price of $0.20.

Compared to the current price of $0.25, it is only 25% higher than the investment price of the NASDAQ-listed company.

Diversified Investment Strategy

In addition to direct holdings, I also run a $WLFI trading bot on Pionex. The grid range is set from $0.10 to $0.42. Within 22 hours, it has already brought me a 2.5% profit (with an annualized return of up to 960%). For investors unwilling to hold long-term, capturing significant returns through volatility alone is possible.

Furthermore, there are two higher-risk ecosystem projects worth noting:

· One is $BLOCK (Blockstreet), founded by $WLFI's Chief Information Officer, a launchpad for $1 tokens;

· The other is $DOLO (Dolomite), led by $WLFI's Chief Technology Officer, a $1 DeFi service provider.

These projects have smaller market caps, indicating greater potential upside, but also higher risk.

If the price of $WLFI doubles, the prices of these two tokens could potentially increase by 3 to 4 times; however, if $WLFI falls, their decline may be more severe. Therefore, achieving balance in the portfolio is crucial.

Overall, $WLFI is undoubtedly one of the most significant token events of this cycle. Its identity is not just a narrative story but a combination of political influence, financial properties, and speculative value. The Trump official token, institutional endorsements, and the stablecoin relation to U.S. Treasury bonds have made it a highly focused market interest.

Original Article Link

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