UPDATE: The launch of a new cryptocurrency by the Trump family’s World Liberty Financial has reportedly boosted their wealth by approximately $5 billion as trading began this week. The token, known as WLFI, surged to a high of around 40 cents following its launch on July 15, 2023, according to data from CoinMarketCap. However, within 48 hours, the value plummeted to 21 cents, a staggering 48% drop, before slightly recovering to around 23 cents by Tuesday afternoon.
Despite this volatility, the Trump family’s stake in WLFI, which consists of 22.5 billion WLFI tokens, remains valued at about $5 billion. The family is currently unable to liquidate their holdings as the tokens are locked under the founders’ agreement, per statements from World Liberty Financial. The company has not provided immediate comments on the situation.
The timing of WLFI’s launch is significant, as Donald Trump, having shifted from skepticism to support for cryptocurrency, aims to position the U.S. as the “crypto capital of the world.” His administration’s recent efforts include signing the Genius Act, which establishes federal regulations for stablecoins—considered safer due to their value being pegged to fixed assets like the U.S. dollar.
The emergence of WLFI has raised eyebrows, with watchdog groups and Democratic lawmakers expressing concerns about potential conflicts of interest.
“The media’s continued attempts to fabricate conflicts of interest are irresponsible,”
stated White House Press Secretary Karoline Leavitt, defending the Trump family’s business endeavors.
As WLFI continues to fluctuate, experts note that this price behavior is typical for newly launched tokens. Nic Puckrin, CEO of Coin Bureau, explained, “The price action from 40 cents to 21 cents is typical for new token launches. Early hype usually drives initial spikes, followed by a wave of selling as early entrants take profits.”
WLFI is designed not just as a cryptocurrency but as a governance token, allowing holders to participate in decision-making for World Liberty Financial. Importantly, WLFI holders are cautioned that the token should not be viewed as an investment opportunity, emphasizing its governance focus instead.
The Trump family’s involvement in cryptocurrency is not limited to WLFI. Earlier this year, the $TRUMP meme coin garnered attention when it offered top holders exclusive access to dinner with Trump, prompting scrutiny over possible implications for access to the former president. The coin’s value peaked at about $15 but has since fallen to approximately $8.30.
The Trump Media & Technology Group has also made waves in the crypto sector, purchasing around $2 billion in cryptocurrencies to transition the business into an investment entity. However, shares of the group have faced challenges, losing about 50% of their value year-to-date.
As the crypto landscape evolves, the coming days will reveal if WLFI can stabilize and what implications this holds for the Trump family’s financial future and the broader cryptocurrency market. Stay tuned for further updates on this developing story.