The investment bank Compass Point has issued a warning about the World Liberty Financial token (WLFI), which is set to become tradable shortly. The analysts expressed concerns that due to a significant portion of the token's total supply being allocated to insiders, WLFI could see a misleadingly high valuation upon its release on exchanges. This type of scenario was witnessed previously with Trump’s meme coin, which experienced substantial early losses for investors. Market predictions suggest that WLFI's value may initially appear inflated because over 20% of its supply is held by Trump’s family, which will not be tradable at the outset. Investors, especially retail ones, could face severe losses if exchanges list WLFI at a high fully-diluted valuation, similar to previous instances with Trump-related tokens. The warning emphasizes the importance of understanding the market dynamics and potential risks associated with new crypto asset listings, especially those linked to high-profile individuals.

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