altcoins

The 20th of January this year will be an important day for crypto. That day, we will see Donald Trump’s inauguration as 47th President of the USA. This may go hand in hand with positive developments in the crypto sector. It’s interesting to see how Trump went from anti crypto to pro crypto in just under four years. Nonetheless, here we are. 

With his two eldest sons, Eric and Donald jr., he also founded his own crypto DeFi protocol. That’s World Liberty Financial. So far, this platform bought only six tokens. So, I will take a closer look at these tokens, including five altcoins, since they could explode after his inauguration. Here is Part 1.

Brief Intro to World Liberty Financial

World Liberty Financial is a DeFi protocol, founded by Donald Trump and his two oldest sons. They are Eric and Donald jr. The platform invested a total of $77 million in six tokens, including five altcoins. This was between 10th and 18th December 2024. These are,

  • Ethereum ($ETH)
  • Chainlink ($LINK)
  • Aave ($AAVE)
  • Ethena ($ENA)
  • Ondo Finance ($ONDO)
  • wBTC ($WBTC)

Altcoins

Source: Dropstab

Today, I will cover 3 of the altcoins it is buying. We will cover the other 3 tokens in a couple of days.

Ethereum ($ETH)

With Ethereum ($ETH) we have one of the OG altcoins. World Liberty Financial (WLFI) invested $61.19 million into $ETH. Their average buy price was $3,784. However, the current $ETH price is $3,666. So, the platform is actually in the red for $1.92 million. It’s 79% of their holdings!

So, I hear you asking, why did WLFI buy Ethereum to start with? Well, like I said in the beginning, it’s an OG coin. So, I can also call it a legacy coin. Now we saw a few legacy coins having massive rallies, like Ripple’s $XRP and Cardano’s $ADA. $XRP went from 50 cents in November to $2.82 in December. That’s a 5x. $ADA went from 35 cents in November to $1.30 in December. That’s almost a 4x.

In contrast, $ETH went from $2,430 in November to $3,650. That’s not even a 2x. So, that also tells me that Ethereum’s rally is still to come. What price do you expect it to hit during this run? Let me know. 

I’m looking at around $10k. That’s a 3x from where WLFI bought $ETH. On a $61 million investment, that would still be a $183 million profit. That’s how it works with big investments. Play it ‘safe’ and still make big gains.

Ondo Finance ($ONDO)

Ondo Finance ($ONDO) is a leader in the RWA sector. That’s Real-World Assets. You can tokenize pretty much anything. That’s what the RWA sector is doing. WLFI invested $250k in $ONDO. It’s currently $44k in the red on $ONDO. So, why is Trump and WLFI interested in Ondo? 

Well, there are a few reasons.  For example,

  1. Ondo has a partnership with BlackRock. This happens to be one of the biggest investment companies in the world. Furthermore, Ondo tokenizes US T bills or Treasury bills. The US government backs these T bills.
  2. The RWA sector has massive potential. According to analysts, we can see a $50 billion market this year for RWA, with Ondo leading the pack.
  3. The supposed new SEC chair is Paul Atkins. He’s also connected to BlackRock. Securitize powers BlackRock, and Atkins is on Securitize’s Advisory Board. BlackRock led a $47 million funding round for Securitize. It’s the transfer agent and tokenization platform for BlackRock’s $47 million Buidl funds.
  4. A Binance listing may be coming for $ONDO. This would very likely see a positive price development.

Check my recent deep dive video into Ondo. It shows you why Trump and WLFI bought $ONDO. Our Alpha team also called Ondo, at $1.42. So, if you want inside information and early calls, follow our Alpha group.

Aave ($AAVE)

My last WLFI buy for today’s altcoins list is Aave ($AAVE). This is a DeFi platform for lending and borrowing. WLFI invested $2 million in Aave, and it’s $70K up. But why did WLFI invest in Aave? 

Well, the reason is fairly simple. WLFI is also setting up a lending and borrowing platform. Now, it bases this on Aave, which is an open-source protocol. 

However, the AaveDAO allowed WLFI to launch a version of their protocol. In return, WLFI wants to boost the Aave protocol and also gain trust. Which the DAO returned favorably. After WLFI’s initial purchase of $1 million, $AAVE went up by 30%.

However, nothing is free in the world of finance. So, Aave is not walking away empty-handed. In return for WLFI using their platform, the AaveDAO receives 20% of the fees generated by WLFI. Furthermore, the AaveDAO will also receive 7% of the circulating supply of $WLFI tokens.

WLFI will first start with lending and borrowing options for, 

  • Ethereum ($ETH)
  • Wrapped Bitcoin ($WBTC) 
  • The $USDC and $USDT stablecoins.

So, there you have it. Part 1 of the coins that WLFI invested in and why it did so. And anything backed by the 47th US President may just do well.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.

Copyright Altcoin Buzz Pte Ltd.

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