World Liberty Financial (WLFI), a cryptocurrency investment platform backed by Donald Trump, has suffered $110 Million in unrealized losses.
The decline comes as Ethereum, its largest holding, dropped significantly in value. Despite these losses, WLFI continues to expand its portfolio and form new blockchain partnerships.
Ethereum Leads WLFI’s Losses
Ethereum remains the biggest contributor to WLFI’s losses, accounting for 65% of the portfolio’s decline.
The platform purchased Ethereum at an average price of $3,240, but the asset is now trading at around $2,000. As a result, WLFI’s Ethereum holdings have lost approximately $80.85 Million in value.
Other cryptocurrencies in WLFI’s portfolio have also been similarly affected but to a lesser extent. Tron is the most stable of them all, having dropped by only 5%. Other losses have also stemmed from other holdings such as stETH, WHITE, Movement, and Ondo.
World Liberty Financial Continues to Invest Despite Market Decline
Despite significant losses, WLFI remains active in cryptocurrency investments and expansion efforts. On March 6th, the platform purchased $21.5 Million worth of Ethereum, Wrapped Bitcoin, and Movement Network tokens. These acquisitions suggest confidence in the long-term potential of the crypto market.
WLFI has also announced a new partnership with Sui, a blockchain project founded by former Meta programmers.
This collaboration aims to explore decentralized finance opportunities and expand WLFI’s presence in the blockchain sector.
Analysts speculate that the partnership may be part of a broader strategy to integrate with other blockchain ecosystems.
Trump and Allies Maintain Control Over WLFI Operations
World Liberty Financial was founded in 2024 and quickly positioned itself as a major player in decentralized finance. Donald Trump and his close family members control more than 60% of the project.
This significant ownership stake has raised questions about his growing influence in the cryptocurrency market.
In January 2025, WLFI successfully raised $300 Million through a token sale. Despite its losses, the platform continues to attract strong investor interest. Supporters view WLFI as a key part of Trump’s broader financial strategy.
U.S. Strategic Crypto Reserve
More so, the recent development by the U.S government to form a strategic crypto reserve has been debated and Trump’s position in the WLFI.
His actions in the industry could prompt accusations of a conflict of interest by critics, in relation to the investment giant.
Some question if his government’s policies will be more advantageous for WLFI to expand it and have it become a monopoly in the market.
However, the Trump Organization has denied any ethical concerns related to WLFI’s operations. It claims that an independent investment firm, along with Trump’s children and an outside ethics lawyer, manages the platform. The organization insists that Trump himself has no direct control over WLFI’s activities.
Implications for World Liberty Financial and the Cryptocurrency Market
The operational changes in WLFI’s financial transactions show that the firm is still supporting cryptocurrencies despite short-term fluctuations.
Its current expenditures indicate that the company views the downturn as a chance to buy more assets at a cheaper price. If Ethereum and other holdings recover, WLFI could regain much of its lost value.
More so, various cryptocurrencies involving political personalities are still a subject to regulation by the authorities.
The concept of interaction between DeFi and politics occurs at intersection points where risk poses threats on financial policy and the possible manipulation of influence. WLFI will possibly see more impact on the future crypto regulation as it evolves.
At press time, Ethereum (ETH) is trading at $2,019.23, reflecting a 4.67% decline in the past 24 hours. ETH price has continued its bearish trend, with its market cap also dropping 4.65% to $243.52 Billion.
Source: https://www.thecoinrepublic.com/2025/03/10/world-liberty-financial-portfolio-drops-110m-amid-ethereum-price-decline/