World Liberty Financial (WLFI), a Crypto Project Backed by Donald Trump, Triggered Major Market Gains

On Thursday, WLFI bought $12 million in crypto, causing LINK and AAVE to surge by 30% and ETH to rise 7%.

World Liberty Financial (WLFI), a crypto project backed by former US President Donald Trump, triggered major market gains on Thursday, with its purchases boosting the prices of LINK and AAVE by 30% and ETH by 7%.

On-chain data showed that WLFI’s multi-sig wallet made the following key purchases:

This marked WLFI’s first purchase of LINK and AAVE, showing a move to diversify its crypto holdings. Additionally, data from Spot On Chain revealed that WLFI spent $30 million over 12 days to buy 8,105 ETH at an average of $3,700.

As part of its strategy to integrate deeply into the decentralized finance (DeFi) ecosystem, WLFI aims to leverage Chainlink's data services for pricing and cross-chain tools to strengthen its market position.

Meanwhile, a recent proposal by the project’s decentralized autonomous organization (DAO) aimed to deploy an Aave v3 instance on Ethereum. This move would:

WLFI’s presence in the DeFi space is also evident in its plans to share earnings with liquidity providers on Aave v3, a step that has already gained community approval.

The large purchases by WLFI had a significant impact on the market, with LINK and AAVE showing strong gains of 30%. This reflects investors’ confidence in these assets and their role within WLFI’s platform. At the same time, ETH rose by 7%, further cementing its position as WLFI’s key reserve asset. Notably, the project now holds $50 million in ETH, highlighting its strategy to capitalize on the long-term value of Ethereum.

Spearheaded by Donald Trump as its “chief crypto advocate,” WLFI has garnered attention with the involvement of his sons. While Eric Trump and Donald Trump Jr.担任“Web3 ambassadors,” Barron Trump serves as “DeFi visionary.” Together, they aim to propel the United States to the forefront of crypto adoption.

Since its launch in October, WLFI has raised $55 million through its token sale, accepting ETH, USDC, and USDT. However, this amount is still significantly lower than its $300 million target.

The project's treasury, managed through a limited liability company, holds nearly $73 million in various crypto assets, including wrapped Bitcoin (cbUSD), USDC, USDT, and altcoins. Notably, WLFI frequently trades on CoW Swap, a decentralized platform for cheaper transactions.

Despite its efforts, WLFI still faces challenges, including gaining full investor confidence and meeting its ambitious fundraising goals.