Investment Bank Analyst: Trump-Backed WLFI Token May Pose Significant Risks to Retail Investors

On August 27, it was reported that Compass Point investment bank analysts have warned that the soon-to-be-listed World Liberty Financial token (WLFI), scheduled for Memorial Day, may pose significant risks to retail investors. The analysts pointed out that the main risk comes from WLFI's token allocation structure: over 20% of the supply is held by the Trump family. Although these tokens are currently non-tradable, they are included in the fully diluted valuation (FDV). If exchanges list WLFI at an excessively high valuation, it could repeat the situation seen with the TRUMP token—which has dropped 89% from its peak, resulting in losses for most retail investors.