World Liberty Financial (WLFI), the cryptocurrency investment firm backed by the Trump family, has made a significant move in its digital asset strategy. The company invested $4 million in Avalanche (AVAX) and Mantle (MNT) tokens to counter its substantial losses. The latest acquisitions include $2 million in 103,911 AVAX tokens at an average price of $19.25 and another $2 million in 2.45 million MNT tokens at $0.81 per token.
The company justified the purchases as a strategic hedge against ongoing losses. Despite this, WLFI’s financial struggles remain evident. The firm’s total cryptocurrency investments across 11 assets amount to $340 million, yet it faces unrealized losses exceeding $115 million. Ethereum (ETH), which comprises 58% of WLFI’s portfolio, has been the biggest drag on its financial position, with a single-asset loss of $88 million.
WLFI’s investments span a diverse array of cryptocurrencies, including Wrapped Bitcoin (WBTC), TRON (TRX), Chainlink (LINK), Aave (AAVE), Ethena (ENA), Movement Network (MOVE), Ondo Finance (ONDO), and Sei Network (SEI), in addition to AVAX and MNT. However, the firm’s heavy exposure to ETH has weighed on its overall portfolio performance. With AVAX and MNT entering the mix, WLFI appears to be seeking stability in lower-cap assets as part of a broader risk mitigation strategy.
Market analysts note that the timing of these new acquisitions reflects WLFI’s attempt to recalibrate its holdings. “The company’s moves indicate a shift in investment focus, but the losses from previous holdings remain a major hurdle,” said an on-chain analyst monitoring the transactions.
Controversies and Political Ties
WLFI’s operations have not been free of controversy. The firm’s partnership with TRON has drawn scrutiny due to TRON’s alleged links to illicit finance. Critics argue that WLFI’s association with the blockchain network raises ethical concerns, particularly given its financial struggles. The company has yet to divest from TRON, despite its declining value.
Adding to the scrutiny is WLFI’s direct connection to the Trump family. While the former president has used his name to bolster the project’s credibility, questions persist about the ethical implications of a politically influential figure investing in and promoting a financial venture. The issue of whether Trump or his family members could influence cryptocurrency regulations while holding financial stakes remains a key point of contention.
WLFI’s financial challenges extend beyond its token investments. In October 2024, the firm generated $300 million in WLFI token sales, yet subsequent investor interest fell short of expectations. The firm had set a revised target of $30 million but managed to raise only $14 million by the end of the month. The drop in funding has placed further strain on the company’s long-term viability.
Complicating matters is WLFI’s association with Chase Herro, a business partner known for marketing questionable financial products. His past involvement in online get-rich-quick schemes and controversial sales tactics has cast doubt on WLFI’s legitimacy, with critics citing his role as a red flag for potential investors.
