The cryptocurrency market experienced severe volatility!

Over the past 24 hours, the cryptocurrency market witnessed significant fluctuations. Trump family's "core token" WLFI plummeted as much as 34% at one point. Ethereum dropped from its high of $4,491 to a low of $4,233 before recovering to around $4,380. Bitcoin, XRP, Solana, and other major cryptocurrencies also experienced substantial volatility.

According to CoinGlass data, within 24 hours, the cryptocurrency market saw over $400 million in contract liquidations, affecting more than 130,000 traders. Notably, Ethereum-related contract liquidations reached $143 million, more than double Bitcoin's liquidation amount.

Today in the A-share market, digital currency concept stocks collectively declined. By the afternoon close, Zhidu Group, CNPC Capital, Eastcompeace, Advanced Card Systems, and Star-Net experienced limit-down moves. Shijiazhuang Chanshan Biochemical fell over 10%, while Beijing Beifang Microelectronics and New Land Digital Technology dropped over 9%.

Over 130,000 Traders Liquidated

Starting last night, Trump family's "core token" WLFI officially began trading, but its price collapsed. As of press time, WLFI had fallen 22% within 24 hours. Ethereum also experienced an intraday drop of 3%, touching a low of $4,233, currently down nearly 1% at $4,344.57. Bitcoin initially declined but then surged significantly, currently up over 2% at $109,800.

CoinGlass data shows that within 24 hours, the cryptocurrency market experienced $402 million in contract liquidations, affecting over 130,000 people. Long positions accounted for $273 million in liquidations, while short positions saw $129 million. The largest single liquidation occurred on Binance-ETHUSDT, worth $9.8038 million.

On the evening of September 1st, Beijing time, cryptocurrency company "World Liberty Financial" announced that some digital tokens supporting the Trump family's cryptocurrency project had begun trading on Monday.

Last year, the Trump family and their business partners jointly launched "World Liberty Financial," a "decentralized finance" platform. The "World Liberty Token" (ticker: WLFI) now being traded was previously sold to investors. In July this year, token investors voted to make it tradeable, paving the way for token transactions. World Liberty Financial stated that early investors can sell up to 20% of their holdings.

The Trump family occupies a central position in this project, with President Trump himself listed as a "Chief" member and "Chief Crypto Advocate" on the project website. Additionally, an entity associated with the Trump family, DT Marks DEFI LLC, owns 38% of World Liberty Financial (WLF) shares and holds 22.5 billion WLFI tokens, earning 75% of token sales revenue. Based on World Liberty Financial's terms, transaction records tracked by cryptocurrency analysis companies, and publicly disclosed transaction information, the Trump family has earned approximately $500 million from this project since its launch last year.

Starting Monday local time, multiple cryptocurrency exchanges including Binance, OKX, and Bybit have listed the token for trading on their platforms. The token opened at $0.32 before plummeting 34% to $0.21.

According to the latest news, the World Liberty Financial team proposed using all fees generated from the protocol's proprietary liquidity to purchase and permanently destroy WLFI tokens. The proposal stated: "This project will remove tokens held by participants not committed to WLFI's long-term growth and development direction from circulation, effectively increasing the relative weight of holders committed to long-term holding." Following this announcement, WLFI's decline narrowed. According to CoinGlass data, the token's latest trading price was $0.25, down 22%. Despite the token's significant price drop from issuance, presale investors still made substantial profits, as they purchased tokens at just $0.015. According to Bubblemaps data, cryptocurrency billionaire Justin Sun's WLFI holdings increased approximately 15-fold.

When WLFI was first issued, trading was not available, instead granting holders voting rights on certain business changes (such as underlying code adjustments). Early investors indicated that WLFI token's main attraction was its association with Trump and their expectation that the token would appreciate under Trump's support.

After the token opened for trading, investors can determine its price independently, providing space for speculation while allowing exchanges listing the token to earn transaction fees and potentially attract broader cryptocurrency investor attention.

World Liberty Financial and other Trump cryptocurrency businesses have faced criticism from Democratic lawmakers and government ethics experts. They argue that the Trump family's entry into cryptocurrency while the President reshapes the regulatory framework for digital currencies presents serious conflicts of interest. The White House has repeatedly stated that Trump's assets are held by trust funds managed by his children, eliminating conflict of interest issues.

Two Major Events Impact Market Sentiment

Two significant events have brought emotional pressure to the cryptocurrency market: Trump's escalating attacks on the Federal Reserve and new friction between the EU and US.

Recently, President Trump announced that he had dismissed Federal Reserve Governor Lael Brainard for alleged "mortgage fraud." US media noted this is the first time in over 100 years that a president has dismissed a Fed governor, marking a "significant escalation" in Trump's battle with the Federal Reserve. This event raised market concerns about Fed independence, especially amid insufficient justification for rate cuts. With Fed independence in question, risk assets were sold off while gold became the main safe-haven asset. During Tuesday trading, spot gold broke through $3,500 per ounce, setting a new historical high.

European Central Bank President Christine Lagarde said on September 1st that President Trump's moves to replace Fed Chair Jerome Powell or Fed Governor Lael Brainard would bring "extremely serious dangers to the US and global economy." Lagarde stated: "If US monetary policy loses independence and becomes subject to someone's commands, given the US's influence as the world's largest economy, such actions would not only disrupt America's economic balance but also have worrying global consequences."

Trade friction is also a market focus. On August 29th, a US appeals court ruled that most tariffs implemented by the Trump administration were illegal, adding "more uncertainty" to global economic prospects.

Previously, on August 26th, Trump posted on social media warning all countries and regions implementing digital taxes, digital legislation, or digital regulation, saying unless they withdraw "discriminatory measures against US companies," he would impose high additional tariffs on their exports to the US.

In response, European Commission Executive Vice President Henna Virkkunen, responsible for technological sovereignty, stated on social media on September 1st that the Digital Services Act and Digital Markets Act are the EU's "sovereign legislation," and the EU will continue implementing these digital laws. Virkkunen said the relevant digital laws are non-discriminatory and apply to all online platforms operating in the EU.

Virkkunen also wrote to House Judiciary Committee Chairman Jim Jordan that day, reiterating that EU digital legislation has no extraterritorial effect, but as long as companies' relevant services are provided within EU territory, regardless of where their headquarters are located, such services will be subject to EU regulation.