TLDR
- World Liberty Financial (WLFI), backed by Trump family, faces $4.8M in unrealized losses across their crypto portfolio including ETH, WBTC, AAVE, and LINK
- Recent $59.8M ETH transfer to Coinbase sparked selling concerns, but WLFI states these are routine treasury management moves
- Project has sold 5.36 billion out of 20 billion total WLFI tokens
- WLFI is evaluating proposal from Ethena Labs to integrate sUSDe stablecoin into their Aave platform
- Project continues acquiring assets despite losses, recently purchasing 17.62 WBTC at $96,491
In a series of developments at World Liberty Financial (WLFI), the cryptocurrency project backed by President-elect Donald Trump and his family has reported unrealized losses of $4.8 million across its diverse crypto holdings, while simultaneously engaging in large-scale asset movements.
The project’s portfolio, which includes major cryptocurrencies such as Ethereum (ETH), Wrapped Bitcoin (WBTC), Aave, and Chainlink (LINK), has experienced these losses amid recent market fluctuations. The decline affects holdings that were initially acquired in December when the project spent $12 million on various crypto assets.
On-chain data has revealed several notable transactions from WLFI’s wallet addresses. The project exchanged 103 WBTC, valued at approximately $9.89 million, for 3,075 ETH at a rate of $0.0354. Following this exchange, WLFI transferred ETH worth $59.8 million to Coinbase.
Trump’s World Liberty(@worldlibertyfi) exchanged 103 $WBTC($9.89M) for 3,075 $ETH at a rate of $0.03354 and deposited 18,536 $ETH($59.8M) into #CoinbasePrime.
Afterward, World Liberty spent 1.7M $USDT to buy 17.62 $WBTC at $96,491.
The $ETH, $WBTC, $AAVE, $LINK, $ENA, and $ONDO… pic.twitter.com/EVyF6KmgSG
— Lookonchain (@lookonchain) January 15, 2025
In response to community concerns about these large transfers, WLFI took to social media to clarify that these movements represent standard treasury management practices rather than token sales. The company stated these reallocations are necessary to cover operational costs, fees, and working capital needs.
We’re making routine movements of our crypto holdings as part of regular treasury management, and payment of fees and expenses and to address working capital requirements. To be clear, we are not selling tokens—we are simply reallocating assets for ordinary business purposes.…
— WLFI (@worldlibertyfi) January 14, 2025
Despite the current unrealized losses, WLFI continues to actively acquire assets. Recent transactions show the project purchased 17.62 WBTC at a price of $96,491, using 1.7 million USDT for the acquisition. This ongoing buying activity suggests a long-term commitment to their investment strategy.
The project’s token distribution data shows that 5.36 billion out of the total 20 billion WLFI tokens have been sold to date. The remaining 14.645 billion tokens are still available for investors, who can acquire them using various cryptocurrencies including Ethereum, USDC, Tether, or Wrapped Ether.
Looking ahead, WLFI is currently evaluating a proposal from Ethena Labs, submitted on December 18, 2024. The proposal outlines plans to integrate sUSDe, a stablecoin backed by leveraged positions in Bitcoin and staked Ethereum, into WLFI’s Aave platform implementation.
This potential integration aims to enhance platform functionality by providing users with increased liquidity options and additional collateral choices. Users utilizing sUSDe as collateral would receive sUSDe rewards, adding another layer of potential returns to the platform’s existing features.
The timing of these developments coincides with the approaching presidential inauguration on January 20th, where Donald Trump will return to office. This connection to the incoming president has drawn increased attention to the project from both retail and institutional investors.
World Liberty Financial’s recent activities demonstrate their active management approach, even as they navigate market volatility. Their treasury movements include both strategic acquisitions and operational reallocations, as evidenced by their latest WBTC purchase and ETH transfers.
The platform allows for various forms of cryptocurrency deposits, with the amount of WLFI tokens received varying based on the type and amount of investment. This flexibility in investment options has been designed to accommodate different investor preferences.
Recent transaction data shows that WLFI maintains an active trading strategy, as demonstrated by their exchange of WBTC for ETH and subsequent transfers to cryptocurrency exchanges. These movements have been characterized by the project as routine operational procedures.
Market observers have noted that while the unrealized losses amount to $4.8 million, this represents only a portion of the project’s total portfolio value. The losses span across multiple cryptocurrencies, including ETH, WBTC, AAVE, LINK, ENA, and ONDO holdings.
WLFI’s operational updates and treasury management activities continue to be closely monitored by the cryptocurrency community, particularly given the project’s high-profile backing and the approaching inauguration date.
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