Trump’s Crypto Bet Goes Sour: World Liberty Portfolio Loses $5M

Trump’s renowned crypto venture, World Liberty Financial, is again in the headlines after buying millions of cryptos in 2024. Despite its investment in popular cryptocurrencies, the DeFi crypto project is facing a $4.8M loss. At the same time, the wallet address transaction history shows multiple transactions from the portfolio concerning crypto investors. Let’s discuss Trump’s crypto bets and the current conditions.

World Liberty Financial Loses $4.9M In Its Crypto Holdings

Donald Trump’s crypto project was launched in September, but its first crypto purchase occurred in December. The DeFi platform spent  $12 million to buy popular cryptos like Ethereum (ETH), Aave, and Chainlink (LINK), with ETH having the biggest portion. At that time, the prices of these cryptos rose higher with WLFI’s buying. That was just a start, and the firm bought even more with time, adding WBTC, ONDO, ENA, and many others to its holdings.

However, amid market uncertainties and Bitcoin price struggles, altcoins faced a major correction. This impact is visible in World Liberty’s portfolio, which lost nearly $4.8M in unrealized losses in the ETH, WBTC, AAVE, LINK, ENA, and ONDO holdings. The crypto project has not sold any holdings till the time of reporting but bears significant unrealized losses.

In contrast, Donald Trump’s crypto holdings are growing. Eventually, this will make him the first-ever sitting President with meme coin holdings. Although losses were quite expected in this changing market, the project seems unaffected, except for a few transactions.

Is Donald Trump’s Crypto Project Selling Holdings?

Many on-chain analytics platforms have noticed the transaction from the WLFI wallet. A Lookonchain X post states that the World Liberty firm exchanges some of its WBTC for ETH and USDC for WBTC. According to the post, the crypto project has exchanged 103 WBTC ($9.89M) for 3,075 ETH at the rate of $0.0354. After that, a total of $59.8M worth of ETH has been transferred to Coinbase.

WLFI also spent 1.7M USDT and bought 17.62 WBTC at $96,491. This constant buying confirms the project’s farseeing in the industry, as it’s still holding despite current losses.

These transfers have concerned investors about a possible selling mindset, as the WLFI transferred massive holdings to Coinbase. However, the DeFi crypto project’s team has clarified the reasons behind these transactions. With an X post, the team explained that these transactions were routine movements that addressed the project’s functioning. More importantly, these were just a relocation for their ordinary business purpose and were not a sale.

Key Points To Remember

Amid the market’s uncertainties, Donald Trump’s crypto project faces significant unrealized losses. Crypto holdings, primarily in ETH, WBTC, AAVE, LINK, and ONDO, collectively declined by $4.8M. At the same time, World Liberty Financial made a few swaps between WBTC and ETH and added more WBTC to its holdings before transferring $59.8M in ETH to the Coinbase exchange. However, the WLFI team has confirmed that these transactions and exchanges are not connected to selling behavior but are just routine moves needed for the functioning of the project.