The much-anticipated launch of former President Donald Trump’s World Liberty Token (WLBT) faced a rocky start Monday as the cryptocurrency plummeted nearly 60% within hours of its debut on decentralized exchanges.
What began as a triumphant moment for the Trump media empire quickly transformed into a sobering reality check for investors who rushed to participate in the politically-charged token offering. WLBT, which initially traded around $47 following its launch, tumbled to approximately $20 by late afternoon trading.
Industry observers noted the sharp selloff came amid extraordinarily high trading volumes, with over $500 million in tokens changing hands in the first few hours alone. The volatile price action mirrors the unpredictable nature of cryptocurrency markets, particularly for new token launches with political affiliations.
“We’re seeing a classic case of launch day volatility magnified by the polarizing nature of anything connected to Trump,” explained Maya Hernandez, cryptocurrency analyst at DigitalAssetResearch. “Many early investors appear to be taking profits immediately rather than holding for potential long-term appreciation.”
The token, which was distributed to shareholders of Trump Media & Technology Group as part of a special dividend, represents Trump’s first major foray into cryptocurrency. Trump, who previously criticized Bitcoin and other digital currencies during his presidency, has dramatically reversed course as the industry gained mainstream acceptance and political influence.
The launch comes just months after Trump declared himself “the crypto president” at a Bitcoin conference in Nashville, signaling his campaign’s embrace of the technology ahead of November’s election. His running mate, JD Vance, has similarly positioned himself as pro-cryptocurrency, creating what some analysts describe as the most crypto-friendly ticket in presidential election history.
Trump Media CEO Devin Nunes attempted to downplay the price decline, telling shareholders in an email that “price discovery is normal in early trading” and emphasizing the token’s utility within the company’s planned “free speech ecosystem.”
Cryptocurrency veterans recognize the pattern playing out with WLBT. “First-day volatility for token launches is practically a tradition in crypto,” said Carlos Ramirez, portfolio manager at Blockchain Capital Partners. “The question is whether there’s genuine utility and demand beyond the initial hype cycle.”
The token’s whitepaper describes WLBT as the foundation for a decentralized social media platform that will integrate with Trump’s Truth Social network. However, technical specifications remain vague, leading some analysts to question whether the token offers real technological innovation or simply leverages Trump’s brand.
Market reaction to the launch extends beyond price action. Several major centralized exchanges, including Coinbase and Kraken, have not yet listed the token, citing regulatory concerns and enhanced due diligence requirements for politically-affiliated projects.
This cautious approach reflects the cryptocurrency industry’s increasing sensitivity to regulatory scrutiny, particularly around tokens that could be viewed as securities. The SEC has not commented specifically on WLBT, but Chair Gary Gensler has repeatedly signaled the agency’s intention to bring cryptocurrency tokens under traditional securities frameworks.
For retail investors caught in the price turbulence, the experience offers a reminder of cryptocurrency’s inherent risks. “Any token launch with this level of publicity attracts both passionate supporters and profit-seeking traders,” explained Eliza Wong, research director at CryptoCompare. “When those profit-takers hit the sell button simultaneously, downward pressure becomes inevitable.”
Despite the challenging debut, some Trump supporters remain optimistic about WLBT’s future. Community forums dedicated to the token feature passionate users pledging to “hold forever” regardless of price fluctuations, demonstrating how political loyalty can influence investment behavior in novel ways.
The WLBT launch arrives during a particularly dynamic period for cryptocurrency markets. Bitcoin recently reached new all-time highs above $73,000 before pulling back, while regulatory frameworks continue evolving globally. Whether Trump’s entry into the space represents a lasting commitment to cryptocurrency innovation or a timely campaign strategy remains to be seen.
As trading continues in the days ahead, market participants will watch closely to see if WLBT can establish price stability and demonstrate genuine utility beyond its connection to the polarizing former president. For now, the token’s volatile debut reminds investors that in cryptocurrency markets, even the most high-profile launches can face turbulent beginnings.
