Trump’s WLFI Crypto Investments Struggle Amid Market Volatility

As the Trump administration approaches its 100-day milestone, the crypto venture tied to the First Family — World Liberty Financial (WLFI) — is showing mixed results in a turbulent market. Despite early hype and significant capital raises, WLFI’s portfolio has underperformed amid broader macroeconomic concerns and controversy surrounding the project’s ethics and influence.

The Birth of WLFI: A Family Affair

WLFI officially launched on September 16, 2024, shortly after Donald Trump’s election victory. The announcement, made via the platform X (formerly Twitter), introduced a unique mix of high-profile figures as founders. Real estate mogul Steve Witkoff and his son Zach, alongside crypto investor Chase Herro and influencer Zak Folkman, formed the leadership team. The Trump family themselves took on prominent roles, with President Trump named “Chief Crypto Advocate” and his sons — Eric, Donald Jr., and Barron — serving as “Web3 Ambassadors.”

Massive Token Sales, Restrictive Terms

WLFI’s first major financial move was to sell its native token, $WLFI, raising around $300 million in an October 2024 sale. Tokens were priced at $0.015 each and sold exclusively to accredited investors under restrictive terms that forbade transfer or exchange trading.

Following Trump’s inauguration on January 20, 2025, WLFI launched a second token sale offering tokens at $0.05 each — a 230% increase in price — and raised another $250 million by mid-March. In total, WLFI collected $550 million from token sales.

According to the project’s “gold paper,” $WLFI tokens offer governance rights, with a planned distribution breakdown of:

35% for token sales

32.5% for incentives and community growth

30% for initial supporters

2.5% for core team and advisors

WLFI’s Portfolio Performance: Winners and Losers

Beyond fundraising, WLFI has operated like a crypto investment fund, building a diverse portfolio. According to blockchain data platform Arkham, WLFI’s portfolio holds $103 million across a mix of major cryptocurrencies, stablecoins, and a variety of smaller altcoins.

Key portfolio highlights:

Heavy holdings in stablecoin USDC, Wrapped Bitcoin (WBTC), and Ether (ETH)

Strategic investments in Avalanche (AVAX), Sei (SEI), Mantle (MNT), Movement (MOVE), Tron (TRX), and Ondo (ONDO)

While the fund’s holdings in WBTC, AVAX, and SEI have performed relatively well, losses in other investments are notable. Major investments in MNT, MOVE, ONDO, and ETH have fallen by double-digit percentages. WLFI’s investment in MOVE, in particular, has plunged by over 50%, with losses exceeding $2.1 million.

On average, WLFI’s portfolio is currently down approximately $4.28 million compared to acquisition prices.

Coinbase Prime and Suspicions of Market Timing

Another layer of scrutiny surrounds WLFI’s movements between its wallets and exchanges. WLFI began accumulating large amounts of ETH starting in late November 2024, with significant purchases leading up to mid-January 2025. Interestingly, much of this ETH was transferred to Coinbase Prime just before the second token sale and Trump’s inauguration.

Adding to the controversy, Eric Trump publicly promoted ETH around the same time on social media, prompting concerns about market manipulation and insider trading.

USD1 Stablecoin and Political Tensions

WLFI’s expansion into the stablecoin sector has also drawn political attention. In early March, WLFI launched USD1, a stablecoin now available on Kinesis Money and ChangeNOW exchanges.

A group of U.S. Senators from the banking committee sent an open letter to regulators warning of potential conflicts of interest. They highlighted that Trump, uniquely positioned as President, could influence pending stablecoin regulations that might favor his own project.

Their concerns were amplified when, following a market slump caused by new tariffs announced on “Liberation Day,” Trump posted on Truth Social encouraging followers to “BUY!!” — further fueling insider trading accusations.

Growing Industry Support Despite Criticism

Despite the cloud of regulatory and ethical questions, WLFI continues to gain traction among industry players. On April 16, crypto market maker DWF Labs announced a $25 million investment in WLFI and committed to providing liquidity support for USD1.

Meanwhile, Trump’s administration has notably softened its stance on the crypto industry, dropping several major enforcement cases and proposing crypto-friendly legislation through congressional allies.

The Road Ahead: Uncertain but Active

WLFI’s early performance highlights both the promise and the pitfalls of political involvement in emerging financial technologies. While the project’s founders have ambitious goals, navigating the intersection of governance, regulation, and market realities will determine whether WLFI can emerge as a major player — or become another cautionary tale in crypto history.