Donald Trump’s World Liberty Financial (WLFI) has lost $110 million after its $336 million cryptocurrency investment fell to $226 million. The loss was mostly attributed to Ethereum, which accounted for around 65% of the portfolio’s nine digital assets.
Ethereum Portfolio Suffers 37% decline
The Trump family founded WLFI in September 2023 to make the company a key player in the decentralized finance (DeFi) sector.
Initially, the company received attention for its large multi-signature wallet holdings, which exceeded $74.5 million. Its wallets stored cryptocurrencies such as Wrapped Bitcoin, Aave, and Ethereum.
WLFI has significantly increased its investments in digital assets by $21.5 million, implementing a “buy the dip” strategy that has yet to yield positive results. This investment includes $10 million in WBTC (approximately 110 BTC), $10 million in ETH (about 4,468 ETH), and $1.5 million in MOVE (around 3.42 million tokens).
The company’s Ethereum holding had an average buying price of $3240. However, the current market price hovering around $2000 has led to a staggering loss of $80.85 million, representing a 37% decline.
Finally, WLFI moved its entire crypto holdings to Coinbase Prime to cover operational expenses, fees, and working capital requirements.
Ethical and Political Concerns
The losses happened shortly after President Trump declared he would establish a national cryptocurrency reserve. There are plans to include popular cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano.
Initially, the news created a positive sentiment regarding market dynamics for several cryptocurrencies.
However, it has also raised concerns of conflicts of interest since Trump’s family has a direct financial stake in the cryptocurrency market through WLFI.
This is because government policies about digital assets would directly affect the family’s investments, despite attempts to maintain separation between business interests and political considerations.
Irrespective of the current unrealized losses, WLFI has not signaled any intention to liquidate its holdings. Such a stance suggests that the fund’s long-term strategy could still prove profitable if cryptocurrency markets recover.
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