The Trump family’s foray into the cryptocurrency market has raised eyebrows, with their company, World Liberty Financial, reportedly raking in billions. A recent report by the Wall Street Journal has shed light on the company’s token, WLFI, and its questionable structure, which seems to favor insiders, including the Trump family, while leaving many investors in the lurch. The report highlights the company’s dealings with a UAE-based investment firm, which acquired a 49% stake in World Liberty Financial for $500 million, just days before Trump’s inauguration.
The WLFI token, which is traded on Binance, has a market capitalization of approximately $2.94 billion, with a circulating supply of 24.66 billion tokens. The token’s initial sale raised over $550 million, with the goal of creating a stablecoin-focused DeFi ecosystem. However, the token’s value has been volatile, and many late-stage buyers have faced significant losses. According to a Forbes analysis, the proceeds from the World Liberty token sale were “extraordinarily lucrative” for the Trump family, even before the UAE deal.
The Trump family’s involvement in the cryptocurrency market has sparked concerns about geopolitical and ethical implications. The UAE-based investment firm’s acquisition of a significant stake in World Liberty Financial has raised questions about the company’s ties to Abu Dhabi’s national security adviser, Tahnoon bin Zayed. The partnership between World Liberty Financial and Binance has also been criticized, given Binance’s history of compliance violations.
For investors, the WLFI token has been a risky bet. Reuters has reported on pitches urging investors to buy at least $20 million worth of “governance tokens” to gain access to the Trump-branded DeFi project. However, the token’s value has been unpredictable, and many investors have faced significant losses. The Journal’s report highlights the divergence between the Trump family’s gains and the losses faced by many investors, underscoring the need for caution and transparency in the cryptocurrency market.
The cryptocurrency market as a whole has been trading like a leveraged bet on macro risk. Bitcoin is currently trading at around $70,853, with Ethereum at around $2,094. Solana is trading at around $86.47, with a 24-hour trading volume of around $3.5 billion. The WLFI token, meanwhile, has a live price of about $0.11, with a 24-hour trading volume of around $174 million.
In conclusion, the Trump family’s involvement in the cryptocurrency market has raised significant concerns about transparency, ethics, and geopolitical implications. The WLFI token’s structure seems to favor insiders, while leaving many investors vulnerable to losses. As the cryptocurrency market continues to evolve, it is essential for investors to approach with caution and for regulators to ensure transparency and accountability. For more information, visit https://crypto.news/bombshell-new-wsj-report-claims-trump-linked-crypto-investors-didnt-always-fare-so-well/.
