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WLFI, a token backed by Trump's family, is experiencing market uncertainty, leading to a drop in its price. Early investors are concerned about its future, and experts are unsure if the market will recover or if this marks the beginning of its decline.
World Liberty Financial (WLFI), the cryptocurrency firm linked to the Trump family, is currently facing challenges in its efforts to enter the cryptocurrency market. In late 2024, WLFI generated considerable interest by announcing its affiliation with the Trump family's leadership, with President Donald Trump and his sons Eric, Donald Jr., and Barron appointed as Web3 ambassadors.
Initially, the project saw success; however, it is now struggling due to significant declines in cryptocurrency market values.
WLFI debuted on September 16, 2024, with a series of token sales designed to raise capital. The first sale in October raised around $300 million by selling 20 billion WLFI tokens at $0.015 each.
A second sale, launched on January 20, 2025, resulted in an increase in the token price to $0.05, raising an additional $250 million. By the end of the sales, WLFI had accumulated $550 million. Despite these figures, the tokens are not currently tradable on exchanges, leaving investors uncertain about their future value.
The WLFIs portfolio includes several cryptocurrencies, and most of its assets are stablecoins, such as USDC. It also contains coins such as Wrapped Bitcoin (WBTC) and Ether (ETH). Most of the firm’s $103 million portfolio is invested in popular tokens such as AVAX, SEI, and WBTC, with its top 13 assets accounting for the majority of its value.
Although some investments, such as MNT, MOVE, ONDO, and ETH, have experienced massive losses, with the latter down more than 50%, they appear to be recovering. As of April 2025, the total loss on the portfolio is projected to be $4.28 million, raising doubts about the long-term profitability of WLFI’s strategy. Additionally, WLFI has garnered attention for its acquisition of Ether and connections to some high-profile individuals in the cryptocurrency sector.
The timing of WLFI's business operations encourages scrutiny of possible conflicts between its interests and those of other stakeholders. In late March, U.S. Senators petitioned regulators to investigate possible administration influence on WLFI, particularly regarding its connection to the USD1 stablecoin. The situation raises new concerns that Trump's unique role enables him to direct legislative changes and market success in a manner that benefits his investment interests.
Additionally, the Trump administration has implemented more lenient regulations for cryptocurrency. As a result of this regulatory environment, WLFI’s activities are generally perceived as shielded from scrutiny while attracting high-profile investors such as DWF Labs and Justin Sun.
Despite the ongoing challenges, WLFI continues to attract media attention as the Trump family expands its cryptocurrency business. The administration's cryptocurrency position, through deregulation policies and marketplace actions against the industry, would create additional obstacles for regulating these types of investments.
