The World Liberty Financial (WLFI) token surged over 22% ahead of a high-profile event at Mar-a-Lago, though analysts attribute the spike to a technical short squeeze rather than organic demand. The Trump-family-linked project faces intensifying political scrutiny over a $500 million deal with a UAE-linked firm, which some senators have urged be investigated. Experts remain divided on whether the political heat adds a ‘meme premium’ or creates long-term downside risk for the token.
World Liberty Financial’s WLFI token gained over 22% ahead of its announced “World Liberty Forum” at Mar-a-Lago on February 18. Connor Howe, CEO of Enso, attributed the surge to a whale buying 2.75 million USDC and a 40% spike in open interest amid negative funding. “That’s called a short squeeze, not organic demand,” Howe stated.
Illia Otychenko, lead analyst at CEX.IO, pointed to reports of a token buyback and increased whale accumulation as catalysts. He noted the Mar-a-Lago event’s heightened visibility likely strengthened existing bullish momentum rather than creating it from scratch. Shivam Thakral, CEO of BuyUCoin, described the move as sentiment-driven amid macro uncertainty.
The project faces scrutiny over a $500 million investment from a UAE-linked firm announced days before Trump’s inauguration. Senators Elizabeth Warren and Andy Kim urged the Committee on Foreign Investment in the United States to review the deal, which Senator Chris Murphy characterized on the Senate floor as containing “the elements of a bribe.”
Howe warned the political heat could fuel WLFI’s short-term “meme premium” but a serious probe would kill institutional appetite. Otychenko noted political scrutiny adds uncertainty and volatility for politically connected projects. Thakral argued investigations could create short- or long-term pressure on the token’s price.
