Trump’s World Liberty Financial: According to reports, World Liberty Financial (WLFI) is a cryptocurrency project tied to the Trump family, and it has claimed to invest close to $347 million in different altcoins. Interestingly, as revealed by blockchain data, it currently causes losses for all of them. As a blockchain analysis company, Arkham Intelligence gives a count that WLFI acquired 4.89 million SEI tokens valued at $775,000 on 12 April. It executed this trade via USDC from one of WLFI’s leading trading the same wallet previously used to acquire other altcoins.
WLFI’s Massive Crypto Holdings Face Heavy Losses
WLFI’s investment portfolio includes a mix of significant cryptocurrencies and altcoins, such as:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tron (TRX)
- Ondo Finance (ONDO)
- Avalanche (AVAX)
- Sei (SEI)
However, as of 12 April, another blockchain analytics platform, Lookonchain, claims that WLFI’s investments have produced no profit. The total held in cryptocurrency for the project is around $346.8 million, held in approximately 11 tokens; however, substantial losses have been incurred by the portfolio:
- Ethereum (ETH) investments alone are down by $114 million.
- Overall, WLFI’s portfolio has lost approximately $145.8 million in value.
Eric Trump’s Ethereum Endorsement
The Trump family has publicly supported cryptocurrencies in the past. On 3 February, Eric Trump, son of former U.S. President Donald Trump, posted on X (formerly Twitter) encouraging his followers to buy Ethereum (ETH): “In my opinion, it’s a great time to add $ETH.” The original post also included the comment, “you can thank me later,” which was subsequently deleted. It remains unclear if it was about WLFI’s investments or a general observation of the market.
Controversy Over Trump’s USD1 Stablecoin
WLFI was also connected with the stablecoin project USD1, which also insinuated some association with Trump; the company, however, has yet to confirm any of these rumours. That rumour generated controversy among Democratic and Republican lawmakers alike. During a 2 April hearing of the U.S. House Financial Services Committee, Democratic Representative Maxine Waters indicated Trump might try to get USD1 to supplant the U.S. dollar in transactional use by the government:
“Trump probably wants the government to use stablecoins for everything, like paying for housing, Social Security, and taxes. And which coin do you think Trump would use instead of the dollar? His own, of course.” Republican Congressman French Hill, who chairs the committee, also expressed concern regarding stablecoin regulation and perceived conflicts of interest.
Why Is WLFI’s Portfolio Underperforming?
Coin E Tech – Latest News on Crypto Several factors could explain WLFI’s struggling crypto investments:
- Market Downturn – The broader crypto market has been volatile, with Bitcoin and Ethereum experiencing price corrections.
- Altcoin Underperformance – Many altcoins have struggled to maintain value, especially newer tokens like SEI and ONDO.
- Poor Timing – WLFI may have bought into certain assets at peak prices before the market declined.
- Regulatory Pressure – Increased scrutiny on crypto projects linked to political figures could affect investor confidence.
Will WLFI Recover Its Losses?
It is typical for crypto markets to swing widely, but here, even by the standards of the most pessimistic observers, WLFI’s losses raise questions about its investment strategy. Some analysts are betting on recovery, or at least partial recovery, of the portfolio with Bitcoin and Ethereum rallying. Still, in such a case, WLFI would suffer even deeper losses if the altcoin market continued to tumble.
Final Thoughts: A Risky Bet or Long-Term Play?
WLFI has suffered significant losses after a massive investment in crypto; being tied to Trump has been less of an asset as the losses have dwindled to USD 145.8 million. The success of the Trump-backed organization members has moved from moderately viable to uncertain.
- Market recovery
- Regulatory developments
- Strategic portfolio adjustments
For now, WLFI’s investments remain a high-stakes gamble in an unpredictable crypto landscape.
Disclaimer
The information in this article is meant to be purely educational and informative and is not to be construed as advice on any financial matter. The market for cryptocurrencies is highly volatile and inherently risky. All readers should perform their research and consult a financial advisor before making any investment decisions.