World Liberty Financial, the Trump-family backed crypto venture, plans to buy back more of its $WLFI token after a steep price drop that followed the U.S. midterm elections.
$WLFI has lost about 10% of its value since Tuesday and more than 66% this year. The latest decline came as Republicans performed worse than expected in the elections.
The TRUMP memecoin and Trump Media shares also hit record lows.
$WLFI faces a separate headwind too. On the day of the vote, Tron founder Justin Sun said he had asked a federal court to sanction World Liberty in his lawsuit over roughly 4 billion frozen $WLFI tokens.
The company said on X that it may use fees earned from reserves backing its USD1 stablecoin, along with other sources, to pay for the purchases.
The plan, $WLFI said, is to encourage more active participation in the project’s governance and put more voting power in the hands of committed long-term holders.
“We intend for buybacks to be an ongoing part of our long-term strategy with the pace and scale guided by ecosystem growth and impact on governance participation,” the project said.
This is not World Liberty’s first attempt to support $WLFI through token purchases. In April, the company disclosed $65.6 million in open-market buybacks over the prior six months.
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