In a notable move amid a period of market turbulence, the DeFi platform associated with former US President Donald Trump, World Liberty Financial (WLFI), has significantly increased its Ether holdings over the past week. This strategic acquisition occurred as the cryptocurrency’s value briefly dropped below the $2,000 threshold. According to data from Cointelegraph Markets Pro, Ether’s price dipped to $1,991 on March 4, prompting this purchasing spree.
Arkham Intelligence reports reveal that WLFI’s current Ether holdings have grown by approximately $10 million compared to the previous week. In addition to Ether, WLFI made acquisitions of $10 million worth of Wrapped Bitcoin (WBTC) and $1.5 million in Movement Network (MOVE) tokens. Despite these investments, the platform currently faces a total unrealized loss exceeding $89 million across its nine-token portfolio, as indicated by Lookonchain data.
This surge in Ether holdings aligns with a broader market trend characterized by investor anxiety due to macroeconomic factors and specific events within the crypto space, such as the unprecedented $1.4 billion Bybit hack on February 21. The hack is considered one of the largest exploits in crypto history. Consequently, investors have shown a preference for safer assets with more predictable yields, including tokenized real-world assets, as noted in a report by Binance Research.
This acquisition spree occurs just weeks after WLFI launched the “Macro Strategy” fund, aimed at investing in Bitcoin, Ether, and other prominent cryptocurrencies seen as pivotal in the transformation of global finance. The fund is designed to foster stability by diversifying WLFI’s holdings across various tokenized assets, thereby enhancing the resilience of the financial system and tapping into emerging opportunities within the DeFi sector.
This recent activity follows speculation about the Trump family potentially establishing substantial business ventures on the Ethereum platform. The co-founder of Ethereum, Joseph Lubin, previously suggested that the Trump administration might eventually integrate Ethereum technology into governmental functions, akin to its current utilization of internet protocols. Currently, Ether represents the largest portion of WLFI’s holdings, followed by investments in Wrapped Bitcoin and the USDT stablecoin.
