World Liberty Financial (WLFI), the cryptocurrency venture endorsed by the Trump family, has recently expanded its digital asset portfolio with significant acquisitions. A few hours ago, WLFI invested $2 million USDT to purchase 103,911 AVAX tokens and an additional $2 million USDT to acquire 2.45 million MNT tokens. The company stated that the tokens would reduce loss and stabilize finances. Despite these measures, WLFI has had considerable financial difficulty over the last few years. The company’s crypto investments in 11 cryptocurrencies total around $340 million. Notable assets include but are not limited to, Ethereum (ETH), Wrapped Bitcoin (WBTC), TRON (TRX), Chainlink (LINK), Aave (AAVE), Ethena (ENA), Movement Network (MOVE), Ondo Finance (ONDO), Sei Network (SEI), AVAX, and MNT. As it stands, though, the portfolio shows an overall unrealized loss of over $115 million, with Ethereum (ETH) alone contributing to an $88 million shortfall. Controversies disrupt WLFI and TRON partnerships World Liberty Financial’s relationship with the TRON blockchain is one of the more controversial aspects of WLFI’s operations. Critics object to partnering with TRON because of connections to illegal finance operations. WLFI has not yet sold its holdings, but they are showing less value than what it initially paid for its investments. Ethereum (ETH) saw its biggest loss of around $88 million. That makes up more than half of WLFI’s total losses. But WLFI has not been unscathed, like most cryptocurrencies, and its large holding of ETH has proved to be a huge drag on its financials as ETH has tanked. Other poor-performing investments have included Wrapped Bitcoin (WBTC) and TRON (TRX). Although the company’s investments in AVAX and MNT as a hedge arrived later than it would have preferred, they could prove beneficial in the long run. However, the mounting losses remain a pressing concern. WLFI was also recognized as a top content provider for its crypto project. In October 2024, it received $300 million from WLFI token sales. Interest from other investors, however, trailed well below expectations. Its new target was a paltry $30 million. By October 31, 2024, WLFI had only managed to garner $14 million — putting its prospects in jeopardy. Another layer of pressure comes from ethical and political criticism WLFI’s connection to the Trump family has sparked attention and scrutiny. Trump’s name has been a promotional tool for investors, but he insists it gives the project credibility. A key question emerging from this situation is whether a sitting president can regulate an industry in which he or his family have a direct financial stake. Trump has already stated his disdain for former SEC Chair Gary Gensler and is already taking a more lenient approach to crypto regulation. The fact that Trump’s sons, who are actively promoting WLFI while holding central roles in his administration, only deepens concerns about the potential for self-dealing. According to Bloomberg’s Zeke Faux in an MSNBC segment on The 11th Hour with Stephanie Ruhle, one of the business partners who is working with Trump in WLFI is Chase Herro, a self-described “ dirtbag of the internet” famous for selling suspect financial products. These details imply serious questions about WLFI’s legitimacy because Herro was highly engaged with the project. His dubious past — selling get-rich-quick schemes, colon cleanses, and online marketing businesses — raises the ethical bar on the crypto venture. Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
