Two major crypto assets projects related to former US President Trump and his family—World Liberty Financial (WLFI) and American Bitcoin (ABTC)—both faced a severe setback on September 4, with tokens and stock prices falling over 20%. This decline occurred amid overall pressure on the crypto market, raising concerns among investors about the short-term trends of "Trump-related crypto assets."
Double Fall: WLFI falls 24%, ABTC falls 21%
According to market data, the WLFI token of the decentralized finance (DeFi) project World Liberty Financial fell 24% on September 4, while shares of American Bitcoin (NASDAQ: ABTC), a bitcoin mining and asset management company invested in by Trump’s two eldest sons, dropped 21% in early trading.
It is worth noting that ABTC only completed its first day of trading on Nasdaq on September 3, with the stock price rising nearly 17% that day, but it encountered a significant pullback the next day.
Reasons for the Fall and Market Background
It is currently unclear what the direct reason for the sharp fall of the WLFI Token is, but the decline of ABTC may be related to a regulatory news report - it has been reported that Nasdaq plans to strengthen its scrutiny of listed companies that purchase crypto assets through equity financing.
This regulatory action comes as U.S. publicly listed companies are accelerating their entry into the crypto assets market. According to data from Architect Partners, since January 2025, 154 U.S. publicly listed companies have announced plans to raise approximately $98.4 billion for the purchase of Bitcoin, Ethereum, and other crypto assets, far exceeding the combined financing scale of $33.6 billion from the top 10 companies last year.
Project Valuation and Strategy
American Bitcoin (ABTC) adopts a hybrid strategy of "buying + mining", aiming to accumulate Bitcoin through both market purchases and production from its own mining farms.
World Liberty Financial (WLFI) officially launched this week in the crypto market, with an initial trading price exceeding $0.30. Based on its total supply of 100 billion Tokens, the fully diluted valuation once surpassed $30 billion.
The overall market is under pressure synchronously
On September 4th, the crypto market overall declined, with Bitcoin (BTC) falling 2.4% and Ethereum (ETH) dropping 3.6%. Against this backdrop, the decline of Trump-related crypto projects is particularly prominent, reflecting a decreasing risk appetite among investors for overvalued new projects.
Conclusion
The synchronous fall of WLFI and ABTC highlights the vulnerability of crypto projects backed by political endorsements under market fluctuations and regulatory pressures. Although the endorsement of the Trump family attracted significant attention and funding in the early stages, investors still need to be wary of the dual impact of overvaluation and policy risks in the short term. In the coming weeks, regulatory dynamics and market sentiment will be key factors in determining the trends of these two projects.
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Trump's encryption projects suffer a heavy blow! World Liberty Financial and American Bitcoin fall over 20%.
Two major crypto assets projects related to former US President Trump and his family—World Liberty Financial (WLFI) and American Bitcoin (ABTC)—both faced a severe setback on September 4, with tokens and stock prices falling over 20%. This decline occurred amid overall pressure on the crypto market, raising concerns among investors about the short-term trends of "Trump-related crypto assets."
Double Fall: WLFI falls 24%, ABTC falls 21%
According to market data, the WLFI token of the decentralized finance (DeFi) project World Liberty Financial fell 24% on September 4, while shares of American Bitcoin (NASDAQ: ABTC), a bitcoin mining and asset management company invested in by Trump’s two eldest sons, dropped 21% in early trading.
It is worth noting that ABTC only completed its first day of trading on Nasdaq on September 3, with the stock price rising nearly 17% that day, but it encountered a significant pullback the next day.
Reasons for the Fall and Market Background
It is currently unclear what the direct reason for the sharp fall of the WLFI Token is, but the decline of ABTC may be related to a regulatory news report - it has been reported that Nasdaq plans to strengthen its scrutiny of listed companies that purchase crypto assets through equity financing.
This regulatory action comes as U.S. publicly listed companies are accelerating their entry into the crypto assets market. According to data from Architect Partners, since January 2025, 154 U.S. publicly listed companies have announced plans to raise approximately $98.4 billion for the purchase of Bitcoin, Ethereum, and other crypto assets, far exceeding the combined financing scale of $33.6 billion from the top 10 companies last year.
Project Valuation and Strategy
American Bitcoin (ABTC) adopts a hybrid strategy of "buying + mining", aiming to accumulate Bitcoin through both market purchases and production from its own mining farms.
World Liberty Financial (WLFI) officially launched this week in the crypto market, with an initial trading price exceeding $0.30. Based on its total supply of 100 billion Tokens, the fully diluted valuation once surpassed $30 billion.
The overall market is under pressure synchronously
On September 4th, the crypto market overall declined, with Bitcoin (BTC) falling 2.4% and Ethereum (ETH) dropping 3.6%. Against this backdrop, the decline of Trump-related crypto projects is particularly prominent, reflecting a decreasing risk appetite among investors for overvalued new projects.
Conclusion
The synchronous fall of WLFI and ABTC highlights the vulnerability of crypto projects backed by political endorsements under market fluctuations and regulatory pressures. Although the endorsement of the Trump family attracted significant attention and funding in the early stages, investors still need to be wary of the dual impact of overvaluation and policy risks in the short term. In the coming weeks, regulatory dynamics and market sentiment will be key factors in determining the trends of these two projects.