“`html

Trump-backed World Liberty Financial (WLFI) appears to be offloading Ethereum as the cryptocurrency faces increasing losses, with ETH recently falling below the $1,500 mark.

WLFI Offloads Ethereum Amid Losses

On April 9, data revealed that a wallet reportedly linked to WLFI sold 5,471 Ethereum for approximately $8 million. The sale price for each ETH was $1,465, marking a significant drop from the firm’s purchase price.

WLFI had previously acquired 67,498 ETH for around $210 million, with an average price of $3,259 per coin. This latest transaction highlights the company’s unrealized loss of roughly $125 million at current market rates.

“Has Trump’s World Liberty Financial started selling ETH at a loss?”

Expansion Amid Challenges

Despite its financial setbacks, WLFI has continued to expand its offerings. On March 25, the company announced the launch of USD1, a stablecoin designed to offer transparency and compliance. USD1 is backed 1:1 by cash, short-term U.S. Treasuries, and equivalents, and is currently available on Ethereum and BNB Chain, with plans for integration on additional networks.

The firm states that USD1 is targeted at institutional investors seeking a secure and reliable alternative to algorithmic or undercollateralized tokens. The reserves for USD1 are audited by third parties, while custody is managed by BitGo.

WLFI’s Background and Governance Concerns

Founded in 2024, WLFI positions itself as a decentralized finance platform offering blockchain-based financial products. Through its token sale, the project raised $550 million, including $75 million from Tron founder Justin Sun, who later became an advisor to the platform.

However, WLFI has faced criticism regarding governance and political influence due to its connections with former U.S. President Donald Trump. In January, the Trump family gained majority control of WLFI by acquiring a 60% share through WLF Holdco LLC. This arrangement entitles them to 60% of the company’s operating profits and 75% of token sales revenue once the platform becomes fully operational.

The Outlook for WLFI and Ethereum

As Ethereum continues to trade below $1,500, WLFI’s decision to sell its holdings underscores the challenges faced by institutional investors in the volatile cryptocurrency market. While the company’s diversification into stablecoins could provide a more stable revenue stream, its governance structure and political ties may remain a point of scrutiny.

Stay informed on the latest developments in cryptocurrency, investing, and finance.

“`

Post Views: 6