WLFI falls 11% as US midterm election hits Trump-linked tokens, Bitcoin rebounds

World Liberty Financial’s (WLFI) token dropped 11% during the US midterm election night, as heightened political risk weighed on assets associated with former President Donald Trump.

Political Volatility Drives Selloff in Trump-Linked Tokens

Market participants sold off Trump-branded cryptocurrencies as results suggested Democrats were poised to gain control of Congress. WLFI, a token project co-founded by Eric Trump, Donald Trump Jr., and Barron Trump, suffered a sharp decline, ultimately closing nearly 5% below its early-evening level despite some stabilization later in the session.

Tokens connected to the Trump name, including Official Trump (TRUMP) and Official Melania Meme (MELANIA), also came under heavy pressure. Traders viewed the volatile night as a risk event for politically branded digital assets, with both tokens posting significant losses.

Official Trump token traded near $1.41, marking a 10% decrease over the election period, while the token price remains over 97% lower than its January 2025 record high, which ranged from $73.43 to $74.27.

Meanwhile, Official Melania Meme was quoted around $0.072, extending declines across Trump-linked tokens during an active session.

Bitcoin Shows Resilience as WLFI Lags

While WLFI and other Trump-linked tokens faced selling pressure, Bitcoin recovered from its initial drop during the same period. Analysts suggested that the shift away from political tokens and into core assets reflected traders’ efforts to manage risk amid changing political conditions. Bitcoin’s wide investor base and distinct risk profile allowed it to rebound quickly after the election-related turbulence, in contrast to the weaker sentiment surrounding politically themed tokens.

Market flows into spot Bitcoin ETFs also indicated ongoing interest in BTC. Recently, funds tracking US spot Bitcoin ETFs accumulated 79,800 BTC, underlining large-scale institutional demand.

Mini dictionary: World Liberty Financial (WLFI) is a cryptocurrency project founded by members of the Trump family, aiming to leverage digital assets for political and commercial objectives. The token’s performance often correlates with political developments involving the Trump brand.

Legal Battle Adds Further Risk to WLFI

In addition to election-related volatility, WLFI faced independent scrutiny from major investor Justin Sun. Sun, founder of the Tron blockchain project and a high-profile figure in the crypto industry, announced on X that his legal team had initiated sanctions proceedings against World Liberty Financial over alleged non-disclosure of UAE citizenship by the company until months after his lawsuit began.

Sun described himself as one of the earliest and largest WLFI investors, stating he had agreed to purchase $30 million worth of tokens in November 2024, later increasing his commitment to $45 million through a Token Purchase Agreement.

Sun’s legal move highlights ongoing conflict with World Liberty Financial and intensifies the risk profile for the company’s token as it continues to trade in a politically sensitive environment.

Thin demand and increased sell flows throughout the midterm session contributed to further declines, with leveraged traders facing additional losses as the market turned against them. By the close of the election window, WLFI’s outlook remained clouded by political, legal, and market risks, while Bitcoin demonstrated resilience in contrast to the broader weakness seen in Trump-linked digital assets.