World Liberty Financial [WLFI] announced the launch of a buyback program for its own governance and utility token, WLFI. The buyback was driven by the success of the USD1 stablecoin and the ecosystem’s growth.
The buybacks will be funded by an initial pool of funds that could also include fees earned from USD1 reserves.
According to the platform, the buyback aimed to encourage active participation in WLFI governance and consolidate voting power among its most committed long-term holders.
U.S. election results and PSI letter spark WLFI selloff
The Democrats won both the Senate and the House in the midterm elections, taking control of Congress. The WLFI token fell 16.67% from $0.0522 on the 3rd of November to an all-time low of $0.0435 on the 5th of November.
It has since bounced by 5.52% to $0.046, but the overarching trend remained bearish.
The threat of increased legislative oversight and conflict-of-interest investigations into Trump-linked crypto ventures, such as World Liberty Financial, sparked the token’s losses.
It was reported that the incoming chair of the Senate Permanent Subcommittee on Investigations (PSI), Sen. Richard Blumenthal (D-CT), sent letters to Binance, Tether, World Liberty Financial, and Fight Fight Fight LLC (associated with the TRUMP memecoin).
According to the statement on the Senator’s website, the letters demanded that these entities submit the requested records and information by the 4th of January, 2027. Failure to comply will prompt the panel to consider alternative measures.
With majorities in both chambers, the Democrats have the power to issue subpoenas. If ignored, they can incur civil or criminal penalties, the Financial Times reported.
WLFI token’s downtrend is likely to continue
The 1-day price structure was bearish, and the imbalance (white) at $0.049 has already been tested. The OBV was in a steady decline, and the RSI highlighted oversold conditions and hefty downward momentum.
If the selling and pessimistic market sentiment continues, WLFI is likely to fall to $0.043, the local low. More losses could follow, taking the altcoin to new lows hitherto unseen.
Final Summary
- World Liberty Financial announced a buyback program of its own utility and governance token, from an initial allocation that may also include fees earned from USD1 reserves.
- The Democratic victory in the recent midterm elections helped spur a wave of selling on the WLFI token.