President Donald Trump is making waves in the crypto sector. We take a closer look at his DeFi protocol World Liberty Financial or WLFI.
So, today I will be looking into what World Liberty Financial or WLFI and its $WLFI token are all about. What altcoins is World Liberty Financial buying? Should you get the $WLFI token, or rather the tokens that WLFI invests in? Continue to find out.
World Liberty Financial is a DeFi protocol. As part of the team, you can see Donald Trump and his three sons. These are, Eric, Donald Jr., and Barron. The project has Donald Trump’s endorsement. It saw the light of day two months before the US elections in November 2024.
Source: World Liberty Financial
However, its website also has various disclaimers. One of them states that despite Trump’s endorsement, WLFI neither employs him nor his family members or employees.
World Liberty Financial should be a lending and borrowing platform. The lending platform will use Aave 3. Hence, its investment in $AAVE tokens. However, the platform hasn’t launched yet. Nonetheless, you can buy its $WLFI token. More on this in a moment.
The investments of World Liberty Financial are where you want to pay attention. After all, they’re endorsed by the 47th US President. WLFI may know something that we’re not aware of.
So, for starters, their biggest investment is in Ethereum ($ETH). According to DropsTab, WLFI holds 78,538.77 $ETH. That’s 1,001 ETH more compared to yesterday. Arkham shows different numbers. It states that WLFI ‘only’ holds 62.85k $ETH. However, this doesn’t include 19.4k staked $ETH. According to the Litest X account, WLFI just bought another 3,191 $ETH. This would bring both lists more in line again.
Either way, WLFI runs a loss on their $ETH holdings. DropsTab has this at $19.23 million at the current $ETH price of $3,150. WLFI keeps investing in Ethereum, which is interesting. Ethereum is one of the most underperforming top tier coins. Is WLFI telling us something, and is there an $ETH pump incoming?
WLFI’s second-biggest investment is in wrapped Bitcoin. To be precise, it holds 646.72 $wBTC. However, the investment used to be in $cbBTC. That’s a wrapped $BTC version with Coinbase as custodian. This investment equals $66.19 million. Currently, it’s a $1.23 million negative investment.
The reason WLFI holds $wBTC can have a few explanations. The first one is that it’s an ERC-20 token, which is easier to move around. Another reason can be that Justin Sun is an advisor to WLFI. Now, BitGo the custodian of $wBTC recently partnered with Sun’s Tron project. This can be WLFI’s way of supporting Sun in return. That’s because Sun bought $75 million worth of $WLFI tokens.
Besides stablecoins like $USDC and $USDT, WLFI’s fourth-biggest holding is $TRX. This is Sun’s native token on his Tron chain. WLFI invested $10 million in $TRX, however, with a current loss of $180k.
Can this be a potential conflict of interest for President Trump? Foreign states or businessmen can invest in $WLFI tokens in return for favors. This is one of the questions that hovers around WLFI. Hence, the disclaimer that I mentioned earlier.
Chainlink is also on their list of investments. This is the leading oracle in crypto. WLFI invested $6.62 million in $LINK.
I already mentioned why WLFI holds $AAVE. Their investment equals $6.71 million.
Ethena is a decentralized stablecoin protocol. It uses various crypto assets to create a synthetic dollar called $USDe. WLFI invested $5.15 million in Ethena.
Its latest investment is in Movement ($MOVE) for $1.88 million. This is a layer 2 on Ethereum. Like Sui and Aptos, it uses the Move coding language.
Ondo Finance is one of the leading RWA protocols. WLFI invested $259k.
So, these are WLFI’s current investments. To us, it looks like they are investing in potential strategic partners and in projects they are currently using. But you can make up your own mind what this means.
Since the start of World Liberty Financial, you can buy their $WLFI token. So, is this something you should consider? Here are some reasons why this may not be such a good idea.
In contrast to your average DeFi protocol, the $WLFI token’s only use case is for governance. Once you buy the token, you can’t transfer it. Not to another wallet, nor can you sell it. Here’s an excerpt from its token sale terms and conditions webpage,
All $WLFI will be non-transferable and locked indefinitely in a wallet or smart contract. You should think of your purchase of Tokens like other non-refundable purchases of goods and services and accept the risk that once you’ve paid the purchase price, your interest in the Token may decline and you have no expectation of resale of the Token.
At some stage, a governance vote could potentially unlock the tokens. However, until that moment, your tokens will sit idle in your wallet.
In the US, only accredited investors under Rule 506(c) of Regulation D under the Securities Act., can buy $WLFI. These are vetted investors with high incomes. So, what do you make of World Liberty Financial? Join us on Discord or on X to discuss this.
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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ALERT: WORLD LIBERTY FI TWAP BUYING $4.7 MILLION MOVE CURRENT ASSET HOLDINGS: $188M ETH $66M WBTC $61M STETH $37M USDC $11M USDT $10M TRX $6M LINK $6M AAVE $4M ENA
