World Liberty Financial (WLFI), a DeFi project partially owned by US President Donald Trump’s family, has recently started selling off some of its Ethereum holdings due to the asset’s price struggles. On April 9, a wallet linked to the project sold 5,471 ETH for approximately $8.01 million at an average price of $1,465. This sale represents a significant setback for WLFI, as they had previously spent $210 million to acquire 67,498 ETH at an average price of $3,259 per coin. With current prices, the firm is facing an unrealized loss of about $125 million. WLFI has not publicly commented on these sales, but the move reflects broader concerns in the Ethereum market, with ETH recently dipping below $1,500 and experiencing a 56% year-to-date correction.
Market analysts attribute the decline in Ethereum’s price to various factors, including geopolitical tensions such as the ongoing Trump tariff dispute, which has led to uncertainty in both traditional and crypto markets. Despite the challenges faced by ETH, WLFI received a significant investment of $25 million from DWF Labs in WLFI tokens. Onchain data shared by a pseudonymous crypto analyst revealed that DWF Labs subscribed to 250 million WLFI tokens for $25 million USDC, which is nearly seven times higher than the original offering price of $0.015 and double the second-round rate of $0.05. Additionally, DWF Labs received 1 million USD1 stablecoins from WLFI for market-making purposes. USD1 is a stablecoin pegged 1:1 with the US Dollar and has garnered attention since its launch. WLFI has also proposed a USD1 airdrop to its token holders to test its distribution model and reward early adopters, ahead of a public rollout of the stablecoin.
The sale of Ethereum holdings by WLFI comes at a time when the cryptocurrency market as a whole is experiencing volatility and uncertainty. The recent downturn in Ethereum prices has raised concerns among investors, with ETH falling below $1,500 and facing a significant correction year-to-date. The geopolitical tensions and market uncertainties have contributed to the price struggles of Ethereum and other cryptocurrencies, leading to sell-offs by projects like WLFI to mitigate potential losses. Despite the challenges, WLFI received a vote of confidence from DWF Labs with a substantial investment in WLFI tokens, showing support for the project’s long-term vision and potential for growth.
WLFI’s decision to offload some of its Ethereum holdings underscores the challenges faced by DeFi projects in navigating the volatile cryptocurrency market. The sell-off of ETH by the project reflects broader concerns in the industry, with market analysts attributing the price struggles to various factors, including geopolitical tensions and market uncertainties. Despite the downturn in Ethereum prices, WLFI received a significant investment from DWF Labs in WLFI tokens, demonstrating confidence in the project’s potential. The investment, along with a stablecoin airdrop proposal, shows WLFI’s commitment to innovation and growth in the face of market challenges, positioning the project for long-term success in the evolving DeFi landscape.
