World Liberty Financial’s Struggles with Cryptocurrency Portfolio

• World Liberty Financial (WLFI) has incurred $124 million in unrealized losses, predominantly from Ethereum, which accounts for $93.6 million of this decline.
• Despite these losses, WLFI remains committed to its investment strategy, recently acquiring 541,783 SEI tokens for $100,000 in USDC.
• The platform successfully raised around $590 million through its token sale, ranking among the top 10 largest in history.

Overview of World Liberty Financial

World Liberty Financial (WLFI), a decentralized finance (DeFi) platform backed by former President Donald Trump and his family, is facing substantial financial setbacks. WLFI’s cryptocurrency investments have led to a total loss of $124 million in operational value, as per Lookonchain’s data, largely due to market volatility.

> Trump’s World Liberty(@worldlibertyfi) spent 100K $USDC to buy 541,783 $SEI again 5 hours ago.
>
> The 9 tokens purchased by World Liberty are currently in a total loss of $124M! source
> — Lookonchain (@lookonchain) March 14, 2025

Despite these losses, WLFI continues its investment endeavors. The platform recently invested in 541,783 SEI tokens through a USDC deposit of $100,000 and is committed to expanding its crypto portfolio during market declines.

Portfolio Composition and Performance

WLFI’s portfolio consists of nine cryptocurrency assets including Wrapped Bitcoin (wBTC), Ethereum (ETH), Tron (TRX), Chainlink (LINK), Aave (AAVE), Ethena (ENA), Ondo Finance (ONDO), Sei (SEI), and Movement (MOVE).

Ethereum is the primary contributor to the unrealized losses at $93.6 million among the assets. In early March, WLFI strategically spent $11.2 million on ETH tokens, which now constitute the largest portion of their portfolio. A 13% decline in ETH’s price worsened the platform’s losses.

Additionally, WLFI’s portfolio suffered total losses exceeding $3 million due to fluctuations in wBTC, AAVE, LINK, and ENA. LINK alone witnessed an 18% decrease starting March 7, significantly impacting the platform’s market worth. Additionally, the MOVE token value fell by 10.5% over the last week, reaching $0.47.

Treasury Management and Public Perception

In February, WLFI transferred its entire crypto treasury to Coinbase Prime as part of a treasury management strategy aimed at covering operational expenses and working capital. WLFI clarified via its official X account that this move was not a token liquidation but a reallocation for customary business needs.

In contrast to its investment struggles, WLFI successfully concluded its token sale, raising about $590 million. According to ICODrops, this fundraising effort ranks among the top 10 largest in history, though it falls short of the record $4.21 billion raised by EOS.

Co-founder Zak Folkman credited Tron’s Justin Sun for this achievement, noting Sun’s $30 million investment in November 2024, which positively influenced market sentiment towards WLFI amid initial hesitations due to its connections with the Trump family.