WLFI to Reward Early Token Holders with First USD1 Stablecoin Airdrop

The move was announced during a time of renewed global interest in stablecoins and as Democrats launch legislation and an investigation to stop Donald Trump’s crypto ventures, including the TRUMP and MELANIA meme coins. Lawmakers raised concerns over potential conflicts of interest and insider profits, with the TRUMP token seeing major gains after a White House gala announcement. WLFI Plans USD1 Airdrop World Liberty Financial (WLFI), a crypto platform that is backed by members of the Trump family, is preparing to airdrop a small amount of its newly launched USD-pegged stablecoin , USD1, to early WLFI token holders. This initiative is currently undergoing a governance vote, and is intended as both a reward for early supporters and a live test of the platform’s airdrop mechanism. According to the proposal that was published on May 6 in the WLFI governance forum, the main goal of the airdrop is to validate the technical functionality of the system in real-time. With the voting set to close on May 14, the proposal already received overwhelming support, with 99.97% of votes cast in favor. This is equivalent to 2.6 billion tokens. Just 0.03%, or about 901,000 tokens, have voted against it. Vote results and timeline (Source: World Liberty Financial ) WLFI placed a lot of emphasis on just how important this test will be to ensure the readiness of its smart contracts and in introducing users to its USD1 stablecoin. While the exact amount of USD1 to be distributed is still undecided, it will be calculated based on the number of eligible wallets and the platform’s airdrop budget. The date for the airdrop is also pending, and WLFI reserves the right to halt or alter the test airdrop at any time. The platform raised $550 million through two public token sales since its September launch, and attracted a community of 85,000 registered holders. This latest proposal was made at a time of growing global interest in stablecoins, with the market cap of USD-backed tokens like Tether ( USDT ) and USD Coin ( USDC ) reaching $230 billion in April, according to Citigroup . These two stablecoins alone account for 90% of the market. Meanwhile, countries are beginning to challenge US dollar dominance in the stablecoin space. Abu Dhabi recently announced a new dirham-backed stablecoin project, and Russia is exploring a ruble-pegged alternative after sanctions that led to frozen wallets on Garantex and associated USDT accounts. Democrats Target Trump’s Crypto Empire While the crypto community seems impressed with the Trump-backed WLFI’s airdrop plan, not everyone is impressed with the President’s crypto involvement . Democrat lawmakers in the United States launched a coordinated effort to scrutinize and potentially restrict President Donald Trump’s involvement in cryptocurrency ventures. Two new legislative proposals and a subcommittee investigation were launched to cut off his ability to profit from projects like the Trump-branded meme coin and the WLFI platform. On May 6, Senator Chris Murphy introduced the Modern Emoluments and Malfeasance Enforcement Act (MEME Act), which seeks to bar federal officials and their immediate families from promoting or profiting from digital assets , including meme coins. The bill proposes civil penalties of up to $250,000 and the forfeiture of any profits to the US Treasury, as well as possible criminal consequences including fines and prison sentences of up to five years. Representative Sam Liccardo submitted companion legislation in the House. However, with Republicans controlling both chambers, the proposals face an uphill battle. On the same day, Democratic Senator Richard Blumenthal announced a preliminary inquiry by the Permanent Subcommittee on Investigations (PSI) into several Trump-affiliated crypto initiatives, including the Official Trump (TRUMP) token and WLFI. The PSI sent document requests to the firms behind these projects, demanding records of communications with the Trump organization and clarity on steps taken to mitigate potential conflicts of interest. The subcommittee is particularly focused on the surge in TRUMP token value after an April 23 announcement that the top 220 holders will be invited to a gala dinner at the White House. This caused the token to spike almost 50% from $9.40 to $13.65. The TRUMP token launched on Jan. 18 and once peaked at $73.43. TRUMP all-time price action (Source: CoinMarketCap ) Despite the price drop from its all-time high, blockchain analytics firm Chainalysis reports that more than half of TRUMP token holders are in profit. Approximately two million wallets purchased the token, with 54,000 new wallets joining after the dinner announcement. Among them, 58 major investors collectively made over $1.1 billion in profits, each earning more than $10 million. The meme coin’s creator earned $320 million to date, with $1.3 million added since the dinner news. Meanwhile, a new player entered the scene. Trucking logistics company Freight Technologies announced on April 30 that it plans to build a $20 million TRUMP token treasury via a convertible note issuance. The firm’s CEO, Javier Selgas, described the token as a means of diversifying its crypto holdings and supporting fair trade policies. Earlier, on April 1, the company also purchased $5.2 million worth of Fetch.ai’s FET token. Lawmakers Also Question MELANIA Meme Coin Meanwhile, a group of crypto traders reportedly made around $100 million in profits by purchasing large amounts of Melania Trump’s meme coin , MELANIA, just minutes before its official launch announcement. According to a May 6 report by the Financial Times, the traders spent approximately $2.6 million to buy 16.7 million of the 200 million total MELANIA tokens slated for sale during the launch period on Jan. 19. MELANIA all-time price action (Source: CoinMarketCap ) The token’s price soared from around $2.00 to $12.95 shortly after Melania Trump publicized it on social media, which was a 550% spike. The group allegedly liquidated their positions in the 12 hours of the announcement. In addition, 22 more accounts reportedly bought close to $900,000 worth of MELANIA tokens 42 seconds after the token went live. The MELANIA token was launched just two days after Donald Trump, then president-elect, announced his own TRUMP token, and both have since drawn a lot of scrutiny from lawmakers. Critics argue the projects raise concerns about conflicts of interest , foreign influence, and potential corruption. Although the First Lady appears less central to the backlash, most of the criticism is centered on Donald Trump himself Since their launch, both tokens saw dramatic declines. MELANIA is currently trading at just $0.31, while TRUMP, despite a brief surge after the dinner announcement, fell to $10.90. Even more controversy surrounds the TRUMP token as two companies linked to the president reportedly control around 80% of its supply. Although a large portion of those tokens are locked and set to vest over the next three years, some critics warn that project insiders still have the potential to rug-pull unsuspecting investors. Source: https://coinpaper.com/8963/wlfi-to-reward-early-token-holders-with-first-usd-1-stablecoin-airdrop