Troubling Signs: Trump Crypto Investments (WLFI) Face Losses

The world of cryptocurrency is no stranger to high-profile figures, but few have sparked as much discussion as the involvement of former US President Donald Trump. His family’s associated crypto project, World Liberty Financial (WLFI), made a notable entry into the market. Launched late last year, the venture immediately drew attention, not just for its ties to the Trump family, but also for its timing relative to significant crypto-related events. Many observers have pointed to potential conflicts of interest, given Trump’s unique position and ability to influence policy that could impact his investments. Despite these concerns, WLFI has been active, engaging in token sales and building a diverse crypto portfolio. But how are these Trump crypto investments actually performing?

What is WLFI and Trump’s Involvement?

World Liberty Financial, or WLFI, debuted on September 16th, with an announcement from then-President-elect Donald Trump himself on X. The project was founded with guidance from real estate figures Steve Witkoff and his son Zach, alongside crypto investor Chase Herro and social media influencer Zak Folkman. The Trump family holds prominent roles within the project structure. President Trump is listed as ‘chief crypto advocate,’ while his sons Eric, Donald Jr., and Barron serve as ‘Web3 ambassadors.’ This direct family involvement is a key characteristic of the WLFI project, distinguishing it from many other crypto ventures.

Raising Funds: The WLFI Token Sales

One of WLFI’s first major activities was conducting token sales for its native $WLFI token. The initial sale commenced on October 15, 2024, raising approximately $300 million by selling 20 billion tokens at $0.015 each. Following Trump’s inauguration on January 20, 2025, WLFI announced a second token sale, citing high demand. This sale offered 5 billion tokens at a significantly higher price of $0.05 each, a 230% increase. This second sale concluded on March 14, meeting its $250 million target. In total, WLFI secured $550 million through these token sales. According to the project’s documentation, WLFI tokens are intended to grant holders voting rights on protocol matters. However, per the terms, the token was only available to accredited investors and is not yet transferable or tradable on exchanges, with no listing date announced.

Analyzing the WLFI Crypto Portfolio

Beyond its own token sales, WLFI has been operating as a type of crypto fund, accumulating holdings in various digital assets. As of a recent analysis, the WLFI crypto portfolio consists of dozens of different tokens, with the largest holdings making up the bulk of its value. The portfolio is valued at around $103 million, with the top 13 assets accounting for nearly $100 million of that total. The majority of the holdings are in dollar-backed stablecoin USDC, providing a stable base. Following USDC, significant positions are held in Wrapped Bitcoin (WBTC) and Ether (ETH). The portfolio also includes investments in several non-stablecoin assets purchased directly:

• Wrapped BTC (WBTC)
• Mantle (MNT)
• Movement (MOVE)
• Sei (SEI)
• Avalanche (AVAX)
• Tron (TRX)
• Ondo (ONDO)
• Ether (ETH)

Dozens of smaller positions make up the remainder of the portfolio, some with very low dollar values.

Performance Snapshot: Wins and Losses for Trump Investments

Examining the performance of these Trump investments within the WLFI portfolio reveals a mixed picture. Some assets have performed relatively well since their acquisition dates. Holdings in WBTC, SEI, and AVAX have shown positive performance. For example, WLFI made significant purchases of SEI in February, March, and April, and acquired its AVAX position in a single purchase in March. However, other major positions have faced substantial losses. Investments in MNT, MOVE, ONDO, and ETH have all seen double-digit percentage drops as of late April. The MOVE investment has been particularly challenging, showing a loss of over 50% of its value, equating to more than $2 million lost on that position alone. When considering the average purchase prices across the entire portfolio, the fund is currently experiencing an estimated overall loss of around $4.28 million. It’s also been noted that WLFI has moved significant portions of its ETH holdings to Coinbase Prime, coinciding with public endorsements of Ether by Eric Trump, raising questions about coordination.

Conflict of Interest and Regulatory Scrutiny

The close ties between the Trump family and the WLFI project have naturally led to concerns about potential conflicts of interest. With Donald Trump holding prominent roles and potentially influencing future crypto regulation or policy, his direct involvement in a crypto venture raises questions about market fairness and transparency. These concerns were amplified following the launch of WLFI’s own stablecoin, USD1, in early March. A group of Senators expressed their worries in an open letter to regulatory agencies, specifically highlighting the potential for Trump to offer advantages to his stablecoin project, particularly as Congress considers new stablecoin frameworks. Further fueling these concerns was a social media post by Trump during a market downturn, urging people to buy, which critics argued could be seen as market manipulation given his positions. Despite these issues, the Trump administration has shown a more favorable stance towards the crypto industry, reportedly dropping high-level enforcement cases and seeing allies in Congress propose favorable legislation. This creates a complex environment where regulatory actions and personal financial interests intersect.

Industry Backing: The DWF Labs Investment

Despite the performance struggles and conflict of interest concerns, the WLFI project has managed to attract external investment. On April 16, crypto market maker DWF Labs announced a $25 million investment in WLFI. As part of this agreement, DWF Labs also committed to providing liquidity for WLFI’s stablecoin, USD1. This investment signals some level of confidence from within the crypto industry in the project’s potential, despite the controversies and the current performance of its underlying asset portfolio.

In conclusion, the Trump family’s WLFI crypto project is a complex and closely watched venture. While it successfully raised significant capital through token sales and has built a diverse crypto portfolio, its performance has been mixed, with notable losses on several key positions. The project continues to navigate significant conflict of interest concerns due to its ties to a prominent political figure. The recent investment from DWF Labs indicates ongoing industry interest, but the ultimate success and impact of WLFI, particularly regarding its stablecoin and the $WLFI token’s eventual listing, remain to be seen. The performance of these specific Trump investments will likely continue to be a point of discussion as the project evolves.