News - World Liberty Financial: Controversy surrounding token swap deals

By Mike Hesp

World Liberty Financial: Controversy surrounding token swap deals

According to reports from Blockworks World Liberty Financial is trying to enter into collaborations with other crypto projects for token swap deals. The proposal is as follows: blockchain companies must buy at least $10 million in WLFI tokens, with an additional fee of 10 percent. In return, the DeFi project, linked to Donald Trump, promises to purchase an equivalent amount of their token.

For a "preferential treatment" however, companies would have to invest $15 million. This raises questions about the transparency and intentions of the project.

The launch of the WLFI platform is scheduled for the third quarter of this year and, according to official estimates, would be a fully diluted value (FDV) of $1.5 billion. Currently, the World Liberty Financial website only allows users to buy WLFI tokens. According to the site, about 24 billion WLFI tokens have already been sold at a price of $0.05 each, representing total proceeds of about $1.2 billion.

Remarkably, a company directly connected to Trump and his family is entitled to 60 percent of the project's equity, 75 percent of revenues from WLFI token sales, and 22.5 billion WLFI tokens-an amount that at the current sales price would be about $1.1 billion would be worth it.

Eric Trump and the Ethereum controversy

Eric Trump, who plays a leadership role within World Liberty Financial, recently stirred up Ethereum investors. Yesterday, he tweeted on X (formerly Twitter):

"In my opinion, this is a good time to add $ETH. You can thank me later."

Shortly thereafter, however, based on data from Arkham Intelligence, which World Liberty Financial had moved almost all of its Ethereum (ETH) reserves to Coinbase-a signal often seen as an announcement of a large-scale sale. Moreover, Trump later removed the second sentence "You can thank me later." from his tweet, which only further fueled speculation.

The project defended itself by arguing that the relocation of ETH was only a routine financial transaction was:

"We perform regular asset movements as part of our financial management, including paying costs and operational expenses. To be clear: we do not sell tokens-we only restructure assets for business purposes."

Yet World Liberty Financial has actually been buying more Ethereum in recent weeks, which adds mystery to the real intentions behind the transaction.

Geopolitical impact on the crypto market

In addition to the internal controversies surrounding WLFI, the broader crypto market remains under pressure from geopolitical developments. Although trade tariffs between the U.S., Mexico and Canada have been suspended for now, the ongoing trade war with China is still weighing on the industry.

At the same time, a Decree signed by Trump to create a U.S. sovereign wealth fund for speculation within the crypto community. What the exact impact this will have on Bitcoin and other digital currencies remains unclear for now.

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