Trump’s WLFI $12M Bet on 3 Cryptocurrencies: What Does It Mean?

Trump's World Liberty Financial Bet: What Next For Aave, ETH And Link

Donald Trump’s World Liberty Financial Splashes $12M on Ethereum, Chainlink, and Aave

In a dramatic turn in the crypto world, World Liberty Financial (WLFI), the decentralized finance (DeFi) project endorsed by President-elect Donald Trump, has made a splash by investing $12 million in three leading cryptocurrencies within 24 hours.

$12 Million Crypto Spending Spree

According to Etherscan data from December 12, WLFI used USD Coin (USDC) to make substantial investments. The project purchased 2,631 Ethereum (ETH) for $10 million, taking the largest chunk of the investment. It also acquired 41,335 Chainlink (LINK) and 3,357 Aave (AAVE) for $1 million each.

At the time of Writing:

1. Aave (AAVE) experienced a massive boost following WLFI’s $1 million purchase, with its price rising around 6.39% in the last 24 hours to $374.09. The token’s market capitalization now stands at $5.61 billion, up 6.40%, showcasing strong market momentum.  Trading activity around AAVE also soared, with 24-hour volume hitting $2.19 billion, reflecting a staggering 51.78% increase.

2. Ethereum is currently priced at around $3,906.70, showing a slight 0.62% decrease in the past 24 hours. The current market cap is $470.54 billion, and the 24-hour trading volume nears $40.32 billion, reflecting an increase of 9.51%.

3. Chainlink is priced at around $29.20 with a 1.25% increase over the past 24 hours. The cryptocurrency has a market capitalization of $18.3 billion and a 24-hour trading volume nears $3.6 billion, marking an impressive 53.40% increase in trading volume during the same period.

Justin Sun Becomes WLFI’s Largest Investor

The high-profile investments come shortly after a major endorsement from Tron founder Justin Sun, who invested $30 million in WLFI. This move positioned him as the project’s largest backer.

Sun announced his support in a November 25 post on X (formerly Twitter), stating:
“We are thrilled to invest $30 million in World Liberty Financial as its largest investor. TRON is committed to making America great again and leading innovation.”

Speculation is rife about Sun’s motivations, with many believing it’s a calculated move to strengthen ties with the Trump administration.

WLFI’s Journey: From Struggles to Success

WLFI initially set an ambitious goal of raising $300 million through token sales but had to scale it down to $30 million due to low interest.

Justin Sun’s $30 million investment proved to be a game-changer, enabling WLFI to hit its revised target. This triggered a revenue-sharing clause outlined in the project’s “gold paper,” allowing Trump’s company, DT Marks DEFI LLC, to claim 75% of net revenues once the $30 million milestone was reached.

The Mystery of WLFI

Despite the big names associated with WLFI, the project remains enigmatic. It claims to focus on stablecoin payments, borrowing and lending services, and liquidity pools. However, concrete details about its operations are sparse.

What’s Next for WLFI and the Market?

WLFI’s significant investments in Ethereum, Chainlink, and Aave have already impacted the market, with notable price surges. The crypto community now watches closely to see if WLFI can translate these bold moves into a sustainable future.