Treasury Management, Not Token Sales
World Liberty Financial, a crypto project associated with the Trump family, denied selling its tokens, saying recent transactions were part of its routine treasury management. The company, which holds $373 million in crypto assets, made the clarification on Feb. 3 after reports suggested it was engaging in token swaps.
“To be clear, we are not selling tokens — we are simply reallocating assets for ordinary business purposes”, the firm said in a social media post. The move comes amid rising speculation within the crypto community about the company’s financial moves.
Reports of Token Swaps Emerge
Blockworks also reported, citing sources close to the matter, that World Liberty Financial was negotiating swaps with various blockchain projects. It reportedly sought to swap $10 million worth of WLFI for an equal value of other cryptocurrencies while charging a 10% fee.
The on-chain data suggests that WLFI contacted projects whose tokens it already holds, like Ether (ETH), USD Coin (USDC), Chainlink (LINK), Aave (AAVE), Tron (TRX), and Uniswap (UNI). The negotiation is allegedly made for increasing liquidity, not to sell WLFI tokens.
Crypto Holdings and Market Activity
As of early February, World Liberty Financial’s crypto reserves stand at $373 million, mainly comprised of ETH and Wrapped Bitcoin WBTC. The firm’s last recorded acquisition was $10 million worth of ETH in late January. The company has never stopped its highly active presence in the crypto market despite the ongoing volatility.
High Demand for WLFI Tokens
World Liberty Financial-which launched ahead of the 2024 US presidential election-promises DeFi opportunities including earning interest and asset-backed lending. As of Jan. 20, the project reported that its initial goal of selling 20% of its token supply had been reached at a reported $300 million at $0.015 per WLFI token; citing overwhelming demand, the firm is now offering to sell an additional 5% of the remaining supply.
Tron founder Justin Sun emerged as WLFI’s largest buyer, investing $30 million in November and an additional $45 million in January. This influx of high-profile investors has fueled speculation about the project’s long-term potential.
Skepticism and Criticism
Despite the success, World Liberty Financial hasn’t been without its controversies, with some industry figures taking swipes at it. The former White House communications director Anthony Scaramucci called the project a “scammy grift”, while billionaire investor Mark Cuban called the move by Trump “desperate” without any real innovation.
While preparations for full-scale operations are still on, increased scrutiny and significant market interest seem to hold it in uncertainty; World Liberty Financial has continued to defend its stand that its financial strategies are proper to meet industry standards and allow for long-term growth.
