Trump’s DeFi Project Spends Nearly $45M on Crypto in December

Donald Trump’s cryptocurrency initiative, World Liberty Financial, has made significant strides in its crypto investments this December, nearing a total spend of $45 million. The latest purchase, made on December 15, saw the project acquire $250,000 worth of Ondo (ONDO), adding to a growing portfolio that includes major tokens such as Ether (ETH), Coinbase Wrapped Bitcoin (cbBTC), and more.

Since November 30, World Liberty’s wallet has spent approximately $30 million on Ether, $10 million on cbBTC, and an array of other cryptocurrencies. According to blockchain monitoring firm Lookonchain and data from Arkham Intelligence, the project’s crypto buying spree has included several notable purchases, including $500,000 worth of Ethena (ENA) just a day before the Ondo acquisition. World Liberty’s total token buys for December now amount to $44.75 million.

The project, launched in September, positions itself as a decentralized finance (DeFi) platform focused on crypto trading. It lists Trump as its “chief crypto advocate” and his sons, Donald Jr., Eric, and Barron, as “ambassadors.” A company linked to the Trump family is entitled to 75% of the project’s net revenues.

A Strategic Move to Boost Trust

According to Nansen research analyst Nicolai Søndergaard, World Liberty’s aggressive crypto purchases may be a strategic move to build trust and boost the visibility of the project. By investing in these assets, World Liberty aims to gain additional exposure, with the hope that the success of the acquired tokens will help the platform thrive. "The project will likely do well if these assets do," Søndergaard told Bloomberg.

Despite these efforts, the project has struggled to achieve its sales targets for its self-titled World Liberty Financial (WLFI) token. So far, the initiative has sold less than a quarter of the $300 million WLFI tokens it put up for sale. However, World Liberty did receive a significant boost last month when Tron blockchain founder Justin Sun invested $30 million into the project, becoming its largest investor. Sun's involvement also led to his appointment as an adviser.

AaveDAO and World Liberty Partnership

In a further development, the decentralized finance protocol Aave has agreed to support World Liberty’s proposal to launch its own version of the Aave protocol. On December 13, AaveDAO, the governing body of Aave, passed World Liberty's proposal to deploy an Aave instance that would allow for borrowing and lending of Ether (ETH), Wrapped Bitcoin (WBTC), and stablecoins such as USD Coin (USDC) and Tether (USDT). As part of the agreement, World Liberty would allocate 20% of the generated fees to AaveDAO, while offering 7% of the WLFI token’s total supply — valued at $21 million — to further strengthen the partnership.

Legal and Regulatory Challenges

While the project is seeing some momentum, it faces legal hurdles. Sun and Tron have been accused by the U.S. Securities and Exchange Commission (SEC) of selling unregistered securities, an issue Trump has promised to address if he returns to the White House. As part of his crypto-friendly platform, Trump has expressed a desire to overhaul the SEC and create a more welcoming environment for cryptocurrency development in the U.S.

World Liberty’s spending spree and recent partnership with Aave highlight the ambitious nature of the project, but challenges remain as it works to build credibility and gain a foothold in the competitive DeFi space. With an aggressive investment strategy and high-profile supporters, World Liberty is positioning itself to make a significant impact in the crypto world — but only time will tell if it can live up to its lofty goals.