TLDR
- World Liberty Financial's foray into decentralized finance saw it spend close to $45 million on a selection of cryptocurrencies this December. Their portfolio includes a significant investment in Ether, accounting for $30 million, and substantial quantities in Coinbase Wrapped Bitcoin, cbBTC, worth $10 million, amongst smaller investments in ONDO, ENA, LINK, and AAVE.
- The initiative names Donald Trump as its main crypto spokesperson, with his sons stepping in as emissaries. A business tied to the Trump family benefits by reaping 75% of the net proceeds.
- Highlighting a significant transaction, Justin Sun invested $30 million into the project's WLFI token, taking on an advisory role, though the token's sales have lagged, achieving less than a quarter of its ambitious $300 million target.
- A significant development saw AaveDAO granting the green light for World Liberty to establish its version of the Aave protocol, paving the way for cryptocurrency lending and borrowing.
- In return for this opportunity, World Liberty promises AaveDAO 20% of the transaction fees generated and offers 7% of the WLFI token supply, valued at $21 million.
World Liberty Financial, a decentralized finance initiative supported by the former President Donald Trump, made headlines with major cryptocurrency acquisitions worth nearly $45 million in December 2024. . Notably, their recent ventures include a $250,000 stake in ONDO tokens.
As per insights from the blockchain tracking account Lookonchain, data from Arkham Intelligence, the fervor for acquiring cryptocurrencies kicked off at the end of November, with standout purchases like $30 million in Ether and $10 million in Coinbase Wrapped Bitcoin.
Throughout December, World Liberty persistently expanded its crypto portfolio, adding $250,000 worth of Ondo and $500,000 in Ethena tokens. Furthermore, their strategic maneuvers include a $2 million investment in both Chainlink and Aave tokens.
Trump's World Liberty( @worldlibertyfi ) spent 250K $USDC to buy 134,216 $ONDO 2 hours ago.
Since Nov 30, #WorldLiberty has spent:
30M $USDC to buy 8,105 $ETH at $3,701;
10M $USDC to buy 103 $cbBTC at $97,181;
2M $USDC to buy 78,387 $LINK at $25.5;
2M $USDC to buy 6,137 $AAVE at… pic.twitter.com/0EVPCgMdMW— Lookonchain (@lookonchain) December 16, 2024
Unveiled in September 2023, World Liberty Financial seeks prominence as a DeFi exchange platform. Donald Trump leads as the chief crypto advocate, with his sons Donald Jr, Eric, and Barron championing the project as ambassadors. A family-affiliated firm has been earmarked to receive a large share of 75% of the net earnings.
The native WLFI token hasn't met its ambitious sales benchmarks. With a $300 million offering on the table, less than 25% of WLFI tokens have been sold.
In a positive turn for the project, Justin Sun, the luminary behind the Tron blockchain, invested $30 million in WLFI tokens. Consequently, he became an adviser and the project’s top investor.
This collaboration with Sun adds a new facet, especially as both he and Tron face SEC allegations concerning unregistered security sales. Trump has voiced an intent to reform the SEC to foster a crypto-friendly backdrop.
Recently, an important approval from AaveDAO, the body behind the Aave protocol, has allowed World Liberty to launch its specific Aave protocol variant. This endorsement came into effect on December 13, 2023.
The sanctioned proposal encompasses plans for comprehensive borrowing and lending services involving pivotal cryptocurrencies like Ether, Wrapped Bitcoin, and stablecoins such as USD Coin and Tether.
Under an agreement with AaveDAO, World Liberty Financial commits to allocate 20% of the fees its Aave operations accrue to the DAO. Additionally, 7% of its WLFI token supply will be shared, with these tokens assessed at a market value nearing $21 million.
The investments made throughout December underscore a clear intent to focus on well-established cryptocurrencies and DeFi protocols. The dominant stake in Ether, capturing $30 million, is a testament to their faith in Ethereum’s potential.
The foray into $10 million worth of Coinbase Wrapped Bitcoin signifies a strategic move towards Bitcoin exposure within a DeFi-compatible structure.
Smaller-sized investments in tokens such as ONDO, ENA, LINK, and AAVE reflect World Liberty's intent to diversify its portfolio across different DeFi platforms, ranging from $250,000 to $2 million in value per token.
A notable transaction rounded off with a $250,000 acquisition of ONDO tokens on December 15, around 11 pm UTC, succeeding a $500,000 Ethena token purchase a day prior.
World Liberty Financial hasn't yet disclosed any statements in light of its recent buying practices or its future strategic roadmap.
