Trump Family Crypto Project Raises $50 Million in Ethereum
The World Liberty Financial project by the Trump family started with a lot of excitement but has not gained much ground. This slow start pushed its backers to explore various strategies to change their fortunes.
Recently, some Ethereum transactions might signal a key shift in this project. A look at the tactics being used to reposition it in the growing crypto market.
Donald Trump and his family are active investors in Ethereum, but their crypto project has faced challenges. World Liberty Financial (WLFI), launched by Eric Trump last August, set out to raise $300 million. So far, only $55 million has been collected.
The project accepts ETH, USDC, and USDT for its WLFI tokens, but access is restricted to accredited investors.
Recent activities indicate a proactive approach. WLFI recently swapped stablecoins for 1,285 ETH on a decentralized exchange, CoW Swap. Their portfolio now holds $73 million in various digital assets, including:
$50 million in ETH; $10 million in wrapped Bitcoin (WBTC); $8 million in USDC; $3 million in USDT.
According to Ethereum investor Eric Conner, the immediate conversion of stablecoins into ETH suggests that the team has more faith in Ethereum than in the U.S. dollar. This highlights the project's plan to build reserves with a long-term focus and deepen its ties to the Ethereum ecosystem.
The significant role of ETH in WLFI's strategy is intentional. Recently, the project has aggressively acquired this cryptocurrency, buying 2,000 ETH nine days ago and almost 3,000 ETH twelve days earlier. This buying spree might indicate strong belief in Ethereum, which many see as a valuable asset in the crypto space.
WLFI appears to have larger goals beyond just financial success. During his campaign, Donald Trump aimed to position the U.S. as the global leader in crypto. This vision includes diversifying DeFi offerings, like their World Liberty lending and borrowing platform, to appeal to institutional investors.
It remains uncertain if these actions can overcome a challenging start. Analysts question whether the accumulation of ETH signifies a strategic change to attract new investors or if it merely reflects a method of managing cash.
Despite initial difficulties, Donald Trump, a strong advocate for crypto, seems ready to push forward. With the support of his team, including Eric, who foresees the decline of traditional banks, he is navigating a rapidly changing market.