Trump's WLFI triples Ether holdings amid market downturn

Trump's World Liberty Financial (CRYPTO:WLFI) DeFi platform has significantly increased its Ether (CRYPTO:ETH) holdings over the past week, tripling them as ETH's price briefly dipped below $2,000.

This move comes during a period of heightened market volatility and investor concerns, partly driven by macroeconomic issues and crypto-specific events like the $1.4 billion Bybit hack.

WLFI's latest acquisitions include an additional $10 million in Ether, $10 million in Wrapped Bitcoin (CRYPTO:WBTC), and $1.5 million in Movement (CRYPTO:MOVE) tokens.

Despite these investments, WLFI is currently facing a total unrealised loss of over $89 million across its holdings in nine different tokens, according to Lookonchain data.

WLFI's strategy aligns with its "Macro Strategy" fund, launched to strengthen projects like Bitcoin and Ether, which are seen as pivotal in reshaping global finance.

The fund aims to enhance stability by diversifying across tokenised assets and investing in emerging DeFi opportunities.

Joseph Lubin, Ethereum co-founder, has suggested that the Trump family might build significant businesses on Ethereum, potentially integrating its technology into government activities.

WLFI's increased holdings come ahead of a White House Crypto Summit, where Trump is set to meet with prominent crypto figures.

The recent investments have sparked debate over WLFI's crypto strategy and potential market influence, especially given the platform's substantial unrealised losses.

As the crypto market continues to navigate volatility, WLFI's moves highlight the ongoing interest in major cryptocurrencies like Ether and Bitcoin.

Despite assurances that Trump has distanced himself from commercial activities, concerns about potential conflicts of interest remain, particularly as Trump and his associates hold significant stakes in WLFI.

The upcoming White House Crypto Summit will likely address these issues and explore the future of cryptocurrencies in the U.S. financial landscape.

At the time of reporting, the Ethereum (ETH) price was $2,155.66.