WLFI Token Gains Momentum After Wall Street Journal Exposes UAE Royal’s Near‑Half Stake in Trump‑Affiliated Crypto Venture
The token surged more than 10 % on February 2, 2026, as traders priced in the perceived backing of a sovereign investor and former U.S. president’s network.
Market reaction
On Monday morning WLFI, the native token of World Liberty Financial (WLFI), climbed to a high of roughly $0.135 before easing to around $0.13 by the close of trading. Data aggregators cite an 11 % increase over the preceding 24 hours, translating to a gain of about 15 % at the peak of the rally.
The price move followed a Wall Street Journal investigation published over the weekend that disclosed a previously unreported transaction in which Sheikh Tahnoon bin Zayed Al Nahyan—UAE national‑security adviser and brother to the Emir’s president—acquired a 49 % ownership interest in World Liberty Financial. The deal, reportedly signed by Eric Trump, involved an upfront payment of roughly $250 million, of which $187 million was routed to entities tied to the Trump family.
Deal specifics
- Stake size – 49 % of World Liberty Financial, making the Emirati sovereign the company’s largest shareholder.
- Capital flow – Approximately $250 million transferred to Sheikh Tahnoon’s representatives; $187 million earmarked for Trump‑linked accounts.
- Timing – The investment was finalized only days before the projected 2025 inauguration of former President Donald Trump.
- Company status – At the time of the transaction, World Liberty Financial had no live products and had raised about $82 million through the issuance of its WLFI token.
Regulatory and constitutional concerns
The transaction raises questions under the U.S. Constitution’s foreign‑emoluments clause, which bars federal officials—including the president—from receiving benefits from foreign governments without congressional approval. Lawmakers have already called for inquiries into World Liberty Financial’s operations and its political connections.
Why the price rose
Analysts suggest the rally is driven more by narrative than by a shift in underlying fundamentals:
-
Nicolai Sondergaard (Nansen) – The market appears to be rewarding the perception of sovereign and Trump‑linked support, which reduces immediate downside risk and adds speculative upside. He emphasizes that the move reflects sentiment around political “insurance” rather than a change in the token’s intrinsic value.
- Mike Marshall (Amberdata) – The token’s appeal lies in its concentrated ownership among politically connected parties, which may grant early insights into macro‑policy shifts, tariff announcements, and regulatory developments. Marshall points to past instances where WLFI’s price reacted ahead of broader market moves, indicating its potential role as an early warning signal for politically sensitive information.
Other metrics
World Liberty Financial’s stablecoin, USD1, continues to expand, now boasting a market capitalization of roughly $5 billion—up from $3.1 billion a few days earlier—and ranking as the fifth‑largest stablecoin by market cap according to DeFiLlama.
Risks and outlook
- Regulatory scrutiny – Ongoing investigations could result in fines, restrictions, or forced divestitures.
- Political volatility – The token’s price is highly sensitive to developments surrounding the Trump administration and UAE‑U.S. diplomatic relations.
- Fundamental uncertainties – With no active products yet, the token’s value relies heavily on future project launches and the ability to monetize the capital raised.
Key takeaways
| Takeaway | Explanation |
|---|---|
| Significant price bump | WLFI token rose over 10 % after the WSJ report, reflecting market optimism towards political backing. |
| Sovereign investment | Sheikh Tahnoon bin Zayed Al Nahyan now holds a near‑half stake, making the UAE a major shareholder. |
| Political risk | The stake raises constitutional and regulatory questions that could affect the token’s future. |
| Narrative‑driven rally | Analysts view the surge as a reaction to perceived “political insurance,” not to any immediate change in fundamentals. |
| Early‑signal potential | Concentrated ownership may provide traders with a leading indicator for macro‑policy shifts, but also adds volatility. |
| Stablecoin growth | USD1’s market cap continues to climb, enhancing the overall ecosystem’s visibility. |
The WLFI rally underscores how political narratives can swiftly influence crypto asset prices, even when underlying projects remain in development. Market participants will be watching both regulatory developments and any forthcoming product releases from World Liberty Financial to gauge whether the token’s momentum can be sustained beyond the short‑term sentiment boost.
Source: https://thedefiant.io/news/defi/wlfi-rallies-after-wsj-reveals-uae-royal-bought-49-stake-in-trump-linked-firm
