World Liberty Financial Purchases $5 Million in ETH

World Liberty Financial, the crypto project backed by President-elect Donald Trump, purchased $5 million worth of ETH on Wednesday, according to on-chain data. This increases the project’s total ETH holdings to over $50 million, primarily acquired in recent weeks.

A wallet linked to an Aave fork executed three transactions about four hours prior, receiving 1,285 ETH tokens from CoW Swap, a highly regarded decentralized exchange. The current trading price for ETH is approximately $3,800 according to The Block’s price page.

The wallet's ETH purchase appears to be funded by profits from the ongoing WLFI token sale, mainly using its substantial stablecoin assets. Additionally, funds are being transferred from the World Liberty contract address (starting with 0xe217e15b) to a wallet address (0x5be9a495) with no outgoing transactions.

By converting stablecoins to ETH, World Liberty Financial appears to be aiming for deeper engagement in the crypto market. This could suggest the team believes ETH is a superior store of value compared to the U.S. dollar.

> “Any stables they get they are flipping for ETH,” Eric Conner, a notable Ethereum investor and advisor, stated. “The Trumps are clearly swapping these stables for ETH instead of just sitting in stables.”

World Liberty’s terms stipulate that the limited liability company established by the Trump family is entitled to 75% of the proceeds from the sale of WLFI tokens and can manage its treasury as it wishes.

According to Arkham Research, the 0x5be9a495 World Liberty wallet holds nearly $73 million in cryptocurrencies. This includes over $50 million in ETH, $10 million in Coinbase’s wrapped bitcoin token cbUSD, $8 million in USDC, and $3 million in USDT stablecoins, among smaller amounts of various altcoins.

In its short lifespan, World Liberty has completed 146 swaps on CoW Swap, which aims to find a “coincidence of wants” to ensure the best execution prices.

Wednesday’s transaction ranks as one of World Liberty’s largest in the past weeks. The project had also acquired around 2,000 ETH nine days ago and nearly 3,000 ETH twelve days prior.

World Liberty started selling tokens on October 15, a few months after Eric Trump announced the project back in August. So far, the team has sold over $55 million in WLFI tokens, significantly short of the $300 million target they initially set, according to Dune Analytics.

The project accepts ETH, USDC, and USDT in exchange for WLFI. In the U.S., participation in the sale is limited to accredited investors, who must meet income or net worth criteria.

Trump, previously a critic of bitcoin, has expressed strong support for the crypto industry during his reelection campaign. He proposed dismissing SEC Chair Gary Gensler and freeing Silk Road founder Ross Ulbricht “on day one”. Furthermore, Trump has appointed podcaster David Sachs as the new “Crypto Czar” in his cabinet.

He has indicated that the World Liberty lending and borrowing platform will “help make America the crypto capital of the world.”