USDWorld Liberty Financial Secures $590M Via Token Sales, Yet Portfolio Drops by $124M
WLFI Secures Massive Funding Despite Market Skepticism
World Liberty Financial (WLFI), a decentralized finance (DeFi) project linked to former U.S. President Donald Trump and his family, has raised an impressive $590 million through multiple funding rounds, cementing its position among the top 10 largest token sales in crypto history. The fundraising effort spanned two public token sales, attracting high-profile investors and institutional backing, yet skepticism persists due to WLFI’s political affiliations and its broader role within the DeFi ecosystem.
WLFI’s first public token sale on October 15, 2024, raised $300 million through the sale of 20 billion WLFI tokens at $0.015 each. A second sale, concluding on March 14, 2025, brought in another $250 million, selling 5 billion tokens at $0.05 per token—a 230% price increase from the first round. Notable backers include Tron founder Justin Sun, who invested $30 million in November 2024, acquiring 2 billion WLFI tokens at $0.015 per token.
Additional investments came from Web3Port, which contributed $10 million in January 2025, and Oddiyana Ventures, which announced a strategic investment in February 2025. In total, WLFI sold 24.97 billion out of its 25 billion allocated tokens, leaving only 34.6 million unsold. While a significant achievement, the raise remains far from EOS’s record-breaking $4.21 billion ICO.
Despite its success in securing capital, WLFI has drawn industry scrutiny due to concerns over its governance, tokenomics, and overall sustainability. Investor sentiment remains mixed, with some viewing it as a promising DeFi player and others questioning whether its fundraising structure prioritizes capital accumulation over genuine innovation.
Co-founder Zak Folkman acknowledged at Consensus 2025 in Hong Kong that some early investors hesitated due to the Trump family’s association. “There was a lot of scrutiny on our project due to who was involved,” Folkman stated, highlighting the project’s polarizing nature. However, Justin Sun’s $30 million backing provided a strong vote of confidence at a crucial stage.
WLFI’s $124M Portfolio Decline Fuels Investor Concerns
Even as WLFI celebrates its successful fundraising, its investment portfolio has suffered heavy unrealized losses totaling $124 million across nine tokens. On-chain data from Lookonchain shows that the project’s holdings, which include Ethereum (ETH), Wrapped Bitcoin (wBTC), Tron (TRX), Chainlink (LINK), Aave (AAVE), Ethena (ENA), Movement (MOVE), Ondo Finance (ONDO), and Sei (SEI), have struggled amid market volatility.
ETH alone accounts for $93.6 million in losses after WLFI tripled its holdings in early March 2025, only for ETH’s price to drop 13% in a week, adding $1.92 million in additional losses. LINK has declined 18% since March 7, contributing over $3 million in losses, while MOVE is down 10.5% in the last seven days, currently trading at $0.47. Other holdings, including WBTC, AAVE, ENA, and ONDO, have also contributed to the overall downturn. WLFI’s latest purchase of 541,783 SEI tokens for $100,000 USDC on Thursday adds further exposure to volatile assets, raising questions about its treasury management strategy.
Concerns intensified in early February 2025 when WLFI transferred its entire crypto treasury to Coinbase Prime. While the project described the move as a standard treasury management strategy to cover operational expenses, fees, and working capital, speculation arose regarding potential token dumping. In response, WLFI issued a statement on X (formerly Twitter), clarifying that it was reallocating assets rather than selling tokens outright. However, skepticism persists due to the project’s financial decisions and the broader market’s uncertainty.
WLFI has also faced sharp criticism from key industry figures. Mike Dudas, managing partner at 6MV, labeled the project a “pay-to-play” scheme rather than a legitimate DeFi gateway. Yearn.finance creator Andre Cronje has also raised concerns, criticizing its high fees and reinvestment tactics, claiming that WLFI extracts value from crypto firms without delivering substantial innovation. Some analysts argue that WLFI is more of a fundraising vehicle than a game-changing DeFi platform, raising doubts about its long-term sustainability.
While WLFI’s ability to raise capital is undeniable, its treasury management and investment losses paint a complicated picture. The project’s financial model, political associations, and investor sentiment will continue to shape its trajectory in the evolving DeFi landscape.
This article has been refined and enhanced by ChatGPT.
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