Donald Trump-Backed World Liberty Financial (WLFI) Records $124M in Unrealized Losses

World Liberty Financial (WLFI), the decentralized finance (DeFi) project backed by Donald Trump and his family, has recorded a total unrealized loss of $124 million

Donald Trump and his family's decentralized finance (DeFi) project, World Liberty Financial (WLFI), has recorded a total unrealized loss of $124 million on nine tokens, according to on-chain data from Lookonchain.

The losses come despite World Liberty Financial's ongoing investment strategy, which saw it purchase an additional 541,783 SEI tokens late Thursday using $100,000 in USDC.

Trump's World Liberty(@worldlibertyfi) spent 100K $USDC to buy 541,783 $SEI again 5 hours ago.

The 9 tokens purchased by World Liberty are currently in a total loss of $124M!https://t.co/xSSBxhy4Wl pic.twitter.com/lckcFLRjB

— Lookonchain (@lookonchain) March 8, 2025

The nine tokens on the platform's portfolio are Ethereum (ETH), Wrapped Bitcoin (wBTC), Tron (TRX), Chainlink (LINK), Aave (AAVE), Ethena (ENA), Movement (MOVE), Ondo Finance (ONDO), and Sei (SEI).

ETH, wBTC, LINK and AAVE market slump add to WLFI losses

Among the biggest losses in World Liberty Financial's portfolio is ETH, which topped the losses charts with $93.6 million shillings. On March 6, the project significantly increased its ETH holdings, tripling its position in the crypto in a period of a week.

Data from Arkham Intelligence reveals that World Liberty Financial now holds approximately $11.2 million more in ETH than it did a week earlier. ETH's intraweek prices have dropped more than 13%, adding to WLFI's portfolio $1.92 million losses over the same time.

Other losses came from WBTC, AAVE, LINK, and ENA, who all wiped away over $3 million from the DeFi platform. Out of the three, it is LINK that added most to the project's woes, which is down almost 18% from its value of $17.6 on March 7.

Last week, LIFI added $10 million worth of Wrapped Bitcoin and $1.5 million in Movement Network (MOVE) tokens to its treasury. These acquisitions took its overall portfolio deeper in the red, with MOVE shedding over 10.5% of its price in the last seven days, now changing hands at $0.47.

In early February, LIFI transferred its entire crypto treasury to Coinbase Prime, describing the movement as part of its treasury management strategy, to cover operational expenses, fees, and working capital requirements.

“To be clear, we are not selling tokens, we are simply reallocating assets for ordinary business purposes,” LIFI stated on its official X account to dispel accusations that it was dumping tokens.

LIFI's token sale raises $590 million

In other more positive news, World Liberty Financial's has reportedly closed its token sale, securing approximately $590 million in funding. According to data compiled by ICODrops, the figure places LIFI's token sale among the top 10 largest in history, though it remains far from the record $4.21 billion raised by EOS.

LIFI co-founder Zak Folkman has publicly credited Tron's Justin Sun for the project's fundraising success. Speaking at Consensus 2025 in Hong Kong, Folkman said that Sun's investment and presence in the project's plans helped move the market's positive sentiment around LIFI, which initially had little support because of the platform's affiliation with the Trump family.

“When we were launching this project, it was a very heated time,” Folkman said during the Consensus panel discussion. “There was a lot of scrutiny on our project due to who was involved.”

He explained that several traditional crypto venture capital firms shied away from investing in LIFI, cautious about its political associations. Still, Justin Sun boldly made investments worth $30 million into the project in November 2024 before increasing his commitment this year.

“Sun saw that regardless of the outcome, this project is a monumental move forward for the entire crypto community,” Folkman added.

As of the latest data on LIFI's website, only 34.6 million tokens remain from the 5 billion that was added to the public sale on January 20. It has now sold 24.97 billion LIFI tokens out of the 25 billion allocated, which accounts for 25% of the total token supply.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now