As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of ambitious projects and questionable investments. The recent buying spree by Donald Trump’s crypto project, World Liberty Financial, has certainly piqued my interest, if not my skepticism.
As a researcher examining the cryptocurrency landscape, I’ve noticed an impressive surge in purchases by Donald Trump’s project, World Liberty Financial. In December alone, they have significantly increased their crypto holdings, currently approaching a total investment of $45 million, following a recent acquisition of $250,000 worth of Ondo (ONDO).
Beginning on November 30th, the World Liberty wallet has invested approximately $40 million in Ether (ETH) and Coinbase Wrapped BTC (cbBTC), worth around $10 million each, along with additional purchases. This information comes from a December 16th post on the blockchain monitoring account Lookonchain, as well as data from Arkham Intelligence.
According to Lookonchain, World Liberty purchased approximately $250,000 worth of Ondo (ONDO) at around 11 pm UTC on December 15. This transaction occurred a day after they had bought $500,000 worth of Ethena (ENA).
Earlier this month, it added $2 million worth of both Chainlink (LINK) and Aave (AAVE) to its holdings, raising its total token purchases for the month to a whopping $44.75 million.
The project, revealed in September, presents itself as a platform for trading cryptocurrencies within the decentralized finance (DeFi) sector. It prominently features President-elect Trump in the role of “Chief Crypto Advocate,” while his sons Donald Jr., Eric, and Barron serve as “Ambassadors.” Notably, a company associated with the family is entitled to 75% of the net earnings from this venture.
According to Nicolai Søndergaard, research analyst at Nansen, purchasing World Liberty’s tokens might serve as a means to build extra confidence in the project or to amplify its growth by drawing attention to the underlying assets. The project is expected to thrive if these assets perform well.
The project has faced difficulties in achieving the sales target for their World Liberty Financial (WLFI) token. To date, they’ve only managed to sell around 25% of the $300 million worth of WLFI tokens they initially intended to sell.
It did, however, get a boost last month when Tron blockchain founder Justin Sun bought $30 million worth and became the project’s largest investor and was then later added as an adviser.
The Securities and Exchange Commission, a financial regulatory body that Trump pledged to reform with a focus on cryptocurrencies, has alleged that Sun and Tron have been involved in selling securities without proper registration.
On December 13th, AaveDAO, the self-governing group responsible for the Decentralized Finance (DeFi) protocol Aave, approved a proposal by World Liberty, enabling them to launch their own version of the Aave protocol.
World Liberty is suggesting the option for users to exchange Ether, Wrapped Bitcoin (WBTC), stablecoins such as USD Coin (USDC) and Tether (USDT). If implemented, they would also distribute 20% of the generated fees to AaveDAO and 7% of World Liberty’s total supply, which currently amounts to approximately $21 million, with each token valued at around 1.5 cents.
World Liberty Financial did not immediately respond to a request for comment.
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2024-12-16 07:13