Trump-linked WLFI denies token sales amid $373 million crypto holdings
Trump-linked WLFI denies token sales amid $373 million crypto holdings
World Liberty Financial (WLF), a crypto firm linked to the family of U.S. President Donald Trump, has denied selling any of its WLFI tokens.
Key Takeaways- WLF denies token sales, claiming it is reallocating assets for treasury management.
- Despite criticism, WLF raised $300 million by selling 20% of its WLFI token supply and plans to sell an additional 5% due to high demand.
- WLF's crypto portfolio is valued at $373 million, with significant stakes in Ether (ETH) and Wrapped Bitcoin (WBTC).
- WLF faces backlash from figures like Anthony Scaramucci and Mark Cuban, who label it as a potential “scam” and criticize its lack of innovation.
In a social media post on February 3, the company stated that it was merely reallocating its assets as part of a routine treasury management strategy. The statement came shortly after a Blockworks report claimed that WLF was seeking token swaps worth at least $10 million.
WLF’s current crypto holdings amount to $373 million, with major stakes in Ether (ETH) and Wrapped Bitcoin (WBTC). Recent on-chain data also indicates that WLF has been acquiring tokens such as USD Coin (USDC), Chainlink (LINK), Aave (AAVE), Tron (TRX), and Uniswap (UNI).
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The controversy stems from claims that WLF was attempting to sell yet-to-be-launched WLFI tokens in exchange for other cryptocurrencies, reportedly charging a 10% transaction fee. WLF, however, dismissed these allegations, maintaining that no such sales had occurred. WLF has seen strong investor interest since its launch ahead of the November presidential election. By January 20, the firm claimed to have sold 20% of its token supply, raising $300 million. It has since announced plans to sell an additional 5% due to what it describes as “massive demand.” Notably, Tron founder Justin Sun became the largest WLFI buyer with a $30 million purchase in November, later increasing his investment by $45 million.
World Liberty Financial’s current crypto holdings. Source: Arkham
Criticism from the crypto community
Despite its financial success, WLF has faced significant skepticism. Former White House communications director Anthony Scaramucci labeled it a “scammy grift,” warning that it could harm the broader cryptocurrency market. Billionaire investor Mark Cuban also criticized the project, calling it an act of “desperation” by Trump, with no real innovation or value.
Read also: Trump-backed World Liberty Financial faces heavy losses
