World Liberty Financial Invests $45 Million in Cryptocurrencies This Month
The newly elected US president's crypto-focused DeFi project World Liberty Financial has invested approximately $45 million in various cryptocurrencies this month.
According to on-chain data provider Lookonchain, as of November 30, World Liberty spent 30 million USDC to acquire 8,105 ETH and an additional 10 million USDC for 103 Coinbase Wrapped BTC. The project also invested 2 million USDC in LINK and another 2 million USDC in AAVE. Furthermore, 500,000 USDC was allocated to ENA, with a recent purchase of 250,000 USDC for ONDO.
Nicolai Søndergaard, a researcher at Nansen, indicated to Bloomberg that these token purchases may aim to build trust among investors and the crypto community, potentially enhancing the perceived success of the tokens in relation to the project's future.
World Liberty, launched in September, features Trump as its chief crypto advocate, with his sons acting as key ambassadors. The project seeks to innovate DeFi while maintaining substantial family control, with their affiliated company set to receive 75% of net revenues.
Justin Sun's $30 Million Boost Strengthens Project
Despite initial challenges in selling the native WLFI token, the project received considerable support from blockchain entrepreneur Justin Sun, who invested $30 million, becoming the largest investor and subsequently an adviser.
Sun is currently involved in legal disputes with the Securities and Exchange Commission (SEC) over unregistered securities sales. Trump has pledged to reform the SEC to adopt a more crypto-friendly stance, highlighted by his nomination of Paul Atkins as the new SEC chair.
AaveDAO Collaboration Expands DeFi Potential
AaveDAO approved World Liberty's proposal on December 13 to create its own version of the Aave protocol, allowing borrowing and lending of assets such as Ether, Wrapped Bitcoin, USD Coin, and Tether. In exchange, World Liberty will allocate 20% of generated fees to AaveDAO and transfer 7% of its WLFI token supply, valued at $21 million based on a price of 1.5 cents per token.
This marks a significant shift in Trump's public perspective on cryptocurrencies, moving from skepticism to active engagement. World Liberty’s extensive acquisition strategy may prompt other institutions to follow suit, potentially invigorating the broader crypto market.
The expansion of World Liberty Financial is likely to attract attention as observers assess its influence on digital finance and regulatory policies. Additionally, Trump's recent endorsement of crypto and DeFi could significantly impact the industry's trajectory in the coming years.