Trump-Backed World Liberty Financial: $45M Crypto Investments

January 13, 2025 5 min
Daniel Bennett Twitter
Daniel Bennett
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Trump-Backed World Liberty Financial: $45M Crypto Investments
Table of contents
  • $WLFi Token Sale
  • Major Investments by WLFi
    • Highlights of WLFiā€™s Investments:
  • Justin Sunā€™s $30 Million Investment in WLFi
    • WLFiā€™s Vision and Plans
    • Trumpā€™s Shift to a Pro-Crypto Stance
Table of contents
  • $WLFi Token Sale
  • Major Investments by WLFi
    • Highlights of WLFiā€™s Investments:
  • Justin Sunā€™s $30 Million Investment in WLFi
    • WLFiā€™s Vision and Plans
    • Trumpā€™s Shift to a Pro-Crypto Stance
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World Liberty Financial is a decentralized finance platform designed to offer users the ability to earn interest on cryptocurrencies and access borrowing services. At the core of WLFi is its governance token, $WL, which empowers holders to participate in protocol governance. Holders can also stake their $WL tokens to support the platform's decentralized network and earn rewards in return. The token is also designed to incentivize long-term holding, with rewards distributed to participants who stake their tokens for extended periods. More information can be found in the WLFi wiki. The platform supports a variety of digital assets and integrates with multiple blockchains to ensure secure and efficient transactions.

Launched in 2021, WLFi was envisioned as a gateway for individuals to access decentralized investments and financial services without relying on traditional intermediaries. Despite its ambitious goals, WLFi has faced significant challenges, including a disappointing token launch and skepticism from the crypto community.

$WLFi Token Sale

Donald Trumpā€™s foray into the crypto world through WLFi has been rocky. In October 2024, while aiming to raise $300 million, the project managed to generate only $21.2 million from selling 821 million tokens, as only 20% of the 100,000 individuals who showed initial interest and registered to buy tokens actualized their pledges. The first stages of the underwhelming $WL ICO outcome stemmed from technical issues like website outages and restrictions limiting sales to accredited investors. Critics have pointed out the projectā€™s centralized structure, with 70% of tokens retained by insiders, contradicting its claims of decentralization. 

Major Investments by WLFi

World Liberty Financial has made significant investments in the cryptocurrency market, spending nearly $45 million to acquire various tokens. This buying spree is seen as an effort to build credibility and attract investor trust.

Highlights of WLFiā€™s Investments:

  • $30 million in Ethereum ($ETH)
  • $10 million in Coinbase Wrapped Bitcoin ($cbBTC)
  • $2 million each in Chainlink ($LINK) and Aave ($AAVE)
  • $500,000 in Ethena ($ENA)
  • $250,000 in Ondo ($ONDO)

As seen on the Arkham platform WLFi profile, these purchases have been accompanied by smaller investments in several other tokens.

Justin Sunā€™s $30 Million Investment in WLFi

One of the most prominent backers of WLFi is Justin Sun, the founder of TRON and a well-known figure in the blockchain space. Sun made headlines with a $30 million investment in WLFi, acquiring at least 2 billion tokens. His move came at a pivotal moment, helping the World Liberty project exceed its funding target after previously selling $21.2 million worth of tokens.

Sunā€™s investment not only added substantial liquidity to WLFi but also positioned him as its largest investor. According to the projectā€™s white paper, Trumpā€™s DT Marks DEFI LLC, which controls 75% of WLFi's revenue, will benefit significantly from this purchase, with an estimated $15 million directed to the president-elect.

In a tweet following his investment, Sun expressed optimism about the project, stating, ā€œWe are thrilled to invest $30 million in World Liberty Financial as its largest investor. The U.S. is becoming the blockchain hub, and Bitcoin owes it to @realDonaldTrump!ā€

A day later, the World Liberty project announced Justin Sunā€™s addition as an advisor, emphasizing that his "insights and experience" would be instrumental in driving innovation and growth. This strategic alignment demonstrates Sun's ability to leverage high-profile investments to gain visibility and influence within the crypto space.

Sunā€™s flamboyant approach to public relations and blockchain advocacy is well-documented. His recent purchase of an artwork titled Comedian, a banana taped to a wall, for $6.2 million exemplifies his unique promotional style. This latest investment in WLFi showcases his bold strategy to enhance his reputation and strengthen the TRON ecosystem further.

WLFiā€™s Vision and Plans

World Liberty Financial aims to establish itself as a leading decentralized financial ecosystem by bridging the gap between traditional and blockchain-based financial services.

Key Goals:

  • Expanding Governance Features: Empowering WLFI token holders to actively shape the platformā€™s future through decentralized decision-making.
  • Enhanced Integration: Partnering with other DeFi protocols to expand platform utility and create synergies.
  • Transparency and Accessibility: Addressing concerns about centralization to align more closely with DeFi principles.
  • Native Stablecoin Launch: Sources have revealed that WLFI is developing its own stablecoin, a cryptocurrency designed to maintain a steady valueā€”often pegged to the U.S. dollar.

The Stablecoin Initiative

WLFI's stablecoin is currently in the development phase, with the team focused on ensuring it is safe and robust before launch. This move could yield significant profits while also introducing potential legal and ethical challenges. Stablecoins are integral to the crypto ecosystem, providing stability in volatile markets and serving as a bridge between crypto and traditional finance.

Rich Teo, co-founder of the stablecoin issuer Paxos, has joined WLFI as its stablecoin and payment lead. His expertise is expected to accelerate the development and eventual rollout of the stablecoin. The project envisions this stablecoin as a key element of its mission to promote mass adoption of decentralized finance while maintaining U.S. dollar supremacy in the global financial landscape.

Although the regulatory environment for stablecoins in the U.S. remains uncertain, the potential profits are immense. For example, leading stablecoin issuers like Tether have reported billions in profits by reinvesting customer deposits into high-yield assets like U.S. Treasury bills. WLFI aims to leverage these opportunities to fund its ambitious roadmap and drive its long-term growth.

Trumpā€™s Shift to a Pro-Crypto Stance

Donald Trumpā€™s involvement in WLFi marks a stark departure from his earlier skepticism toward cryptocurrencies. In recent years, Trump has embraced a pro-crypto stance, positioning himself as a champion of the industry.

Key Initiatives and Promises:

  • National Bitcoin Reserve: Trump has pledged to establish a strategic national crypto stockpile, ensuring the U.S. government retains all bitcoin holdings acquired through asset seizures.
  • Crypto-Friendly Regulations: At a major Bitcoin conference, Trump promised to create a ā€œBitcoin and crypto presidential advisory councilā€ staffed by industry advocates.
  • Mining Focus: Trump has expressed support for making the U.S. a hub for Bitcoin mining, advocating for all remaining $BTC to be ā€œmined, minted, and made in the USA.ā€
  • Leadership Changes: Trump has vowed to replace SEC Chair Gary Gensler and appoint pro-crypto figures to key regulatory roles.

These promises, coupled with his campaignā€™s acceptance of cryptocurrency donations, have solidified Trumpā€™s alignment with the sectorā€™s growth.

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