Trump Family Enters Reserve Business Arena: WLF is Raising $1.5 Billion to Establish WLFI Reserve Company
World Liberty Financial (WLF), a DeFi project supported by the Trump family, is planning to raise $1.5 billion to establish and list a WLFI token reserve company. As the WLFI token is expected to open for trading, the Trump family’s role and position in the project are garnering significant attention, which may reignite controversies over conflicts of interest.
Trump Family Creates WLFI Reserve Company, Raising $1.5 Billion
According to Bloomberg, WLF has initiated intensive discussions with investors from the technology and cryptocurrency sectors, aiming to raise $1.5 billion to establish a publicly listed reserve company. This company will specifically hold its WLFI tokens and extend to the management of various crypto assets.
Sources indicate that the deal structure is not yet finalized, but there are proposals for Eric Trump and Donald Trump Jr. to serve as board members, further solidifying the Trump family’s connection to the project.
Previously, a WLFI microstrategy also emerged on the BSC chain, raising funds by issuing the token $BSTR to purchase WLFI, and is now holding 2 million WLFI.
The Rise of Crypto Reserve Companies: What Narrative Can WLF Combine with USD1?
The model of crypto reserve companies has recently gained traction in the market, and WLF seems to be starting a bit late. On-chain analysis platform Arkham shows that its address holds approximately $220 million in crypto assets, which include, aside from $85 million in stablecoins:
– About $55 million in ETH (38.7% staked)
– About $19.8 million in WBTC
– About $13.8 million in TRX
Currently, the WLFI token has not been opened for trading in the market, but in a community vote held in July, token holders voted to approve an unlocking plan. According to the plan, only early investors will gain access to the first wave of unlocks, while the remaining portion will have its unlocking ratio and timing determined through a second community vote based on total supply.
In addition to WLFI, the project has also issued a USD-pegged stablecoin USD1 and plans to promote a loyalty points program in the near future to attract user participation in the ecosystem. This has led to external expectations about what sparks and narratives may arise from the two products.
The Intersection of Politics and Crypto: The Trump Conflict of Interest Controversy Never Ceases
Although Trump participates in WLFI merely as a “co-founder emeritus,” his involvement in WLFI and the meme coin TRUMP has sparked controversy over conflicts of interest as a former president. Critics argue that the involvement of current political figures in the issuance or promotion of crypto assets or projects may compromise their neutrality.
In response, a White House spokesperson previously stated to the media at a TRUMP meme coin dinner: “Trump’s assets are managed by a trust held by his children, and there is no conflict of interest.”
Now, with the WLFI token set to be listed on exchanges and the reserve company likely to debut officially, the Trump family’s stance and statements regarding WLF are bound to become the focal point of financial and political discourse.
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and their prices can be highly volatile, potentially resulting in the loss of your entire principal. Please assess the risks cautiously.
