World Liberty Financial is launching a buyback program for its WLFI token after the token lost more than 60% of its value this year. The move comes as Democratic control of Congress raises the prospect of scrutiny of Trump family crypto ventures, and as Trump-linked tokens hit record lows.
Trump-backed World Liberty Financial is launching a buyback program for its WLFI governance token after a decline that has erased more than 60% of its value this year. The company said the program would begin with an initial allocation potentially funded by revenue from reserves backing its USD1 stablecoin and other sources.
World Liberty said the program is meant to encourage more holders to take part in governance and give long-term investors greater voting power. The company also suggested that repurchases could become a regular part of its strategy.
WLFI keeps falling after the midterms
The announcement follows selling pressure after this week's US midterm elections, where Republicans performed worse than expected. WLFI has fallen about 10% since the vote. Trump reportedly still holds billions of WLFI tokens, so the value of those holdings depends on the token's price.
Holders also have a November 22 gala dinner to watch, which is scheduled to bring together Trump and the token's top 185 holders.
Democrats gain oversight powers
Democrats' victories in the November 3 midterms gave the party majorities in both the House and Senate. That puts them in a stronger position to investigate the Trump family's business interests through hearings, subpoenas, and committee oversight.
Representative Robert Garcia, expected to lead the House Oversight Committee, has indicated that the panel plans to examine the Trump family's crypto dealings. One issue likely to draw attention is a reported $500 million investment by an Emirati royal in World Liberty, which Senator Elizabeth Warren and four other Democrats had already called for hearings into in June.
Passing legislation could prove harder, however, because Trump can veto bills and overriding him requires a two-thirds majority in both chambers.
Trump-linked tokens hit record lows
TRUMP fell 22% this week to $1.2, after touching a record low of $1.12 on November 5. MELANIA declined 18.37% to $0.06176. Trump Media (DJT) shares dropped 28.91% this week to close at $4.49.
Meanwhile, wallets linked to Trump Media transferred approximately 4,259 BTC, worth about $343.67 million, to Crypto.com. The transfer does not confirm that Trump Media has sold any of its holdings.
Source: CoinGape
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