World Liberty Financial (WLFI) Expands Its Digital Asset Portfolio with Significant Acquisitions

World Liberty Financial (WLFI), the cryptocurrency venture endorsed by the Trump family, has recently expanded its digital asset portfolio

World Liberty Financial (WLFI), the cryptocurrency venture partially endorsed by the Trump family, has recently expanded its digital asset portfolio with significant acquisitions.

A few hours ago, WLFI announced an investment of $2 million USDT to purchase 103,911 AVAX tokens and an additional $2 million USDT to acquire 2.45 million MNT tokens.

The company explained that the tokens would reduce loss and stabilize finances. However, WLFI has encountered considerable financial difficulty over the last few years.

The company’s crypto investments in 11 cryptocurrencies total around $340 million. Notable assets include but are not limited to, Ethereum (ETH), Wrapped Bitcoin (WBTC), TRON (TRX), Chainlink (LINK), Agave (AAVE), Ethena (ENA), Movement Network (MOVE), Ondo Finance (ONDO), Sei Network (SEI), AVAX, and MNT.

As it stands, though, the portfolio shows an overall unrealized loss of over $115 million, with Ethereum (ETH) alone contributing to an $88 million shortfall.

World Liberty Financial’s relationship with the TRON blockchain is one of the more controversial aspects of WLFI’s operations.

The company’s crypto investments in 11 cryptocurrencies total around $340 million. Among the noteworthy assets are Ethereum (ETH), Wrapped Bitcoin (WBTC), TRON (TRX), Chainlink (LINK), Agave (AAVE), Ethena (ENA), Movement Network (MOVE), Ondo Finance (ONDO), Sei Network (SEI), AVAX, and MNT.

As it stands, the portfolio shows an overall unrealized loss of over $115 million, with Ethereum (ETH) serving as the main contributor to the losses. Specifically, ETH's value has decreased significantly, resulting in an $88 million shortfall for the company.

After announcing a partnership with TRON, critics targeted the venture due to TRON’s founders being involved in a pyramid scheme back in 2012.

World Liberty Financial has not yet sold its holdings, but they are showing less value than what it initially paid for its investments.

The company's biggest loss came from Ethereum (ETH), which saw a decrease of around $88 million. This comprises more than half of the total losses faced by World Liberty Financial.

However, like most cryptocurrencies, the company has not been spared, and its large holding of ETH has become a huge drag on its financials as ETH has tanked.

Other poor-performing investments included Wrapped Bitcoin (WBTC) and TRON (TRX).

Despite the criticism, World Liberty Financial's investments in AVAX and MNT as a hedge arrived later than it would have preferred, but they could prove beneficial in the long run. Nevertheless, the mounting losses remain a pressing concern.

World Liberty Financial was also recognized as a top content provider for its crypto project. In October 2024, it received $300 million from World Liberty Financial token sales. Interest from other investors, however, trailed well below expectations. Its new target was a paltry $30 million. By October 31, 2024, World Liberty Financial had only managed to garner $14 million — putting its prospects in jeopardy.

Another layer of pressure comes from ethical and political criticism

World Liberty Financial’s connection to the Trump family has sparked attention and scrutiny. Trump’s name has been a promotional tool for investors, but he insists it gives the project credibility.

A key question emerging from this situation is whether a sitting president can regulate an industry in which he or his family have a direct financial stake. Trump has already stated his disdain for former SEC Chair Gary Gensler and is already taking a more lenient approach to crypto regulation. The fact that Trump’s sons, who are actively promoting World Liberty Financial while holding central roles in his administration, only deepens concerns about the potential for self-dealing.

According to Bloomberg’s Zeke Faux in an MSNBC segment on The 11th Hour with Stephanie Ruhle, one of the business partners who is working with Trump in World Liberty Financial is Chase Herro, a self-described “dirtbag of the internet” famous for selling suspect financial products.

These details imply serious questions about World Liberty Financial’s legitimacy because Herro was highly engaged in the project. Herro is known for selling get-rich-quick schemes, colon cleanses, and online marketing businesses, which raises the ethical bar on the crypto venture.