Fake Barron Trump Memecoin Promoted After World Liberty Financial's Co-Founder's X Account Hacked: Do Not Engage Warning Issued

World Liberty Financial (WLFI), a decentralized finance (DeFi) platform linked to former President Donald Trump's family, has refuted claims that it has been selling its native WLFI tokens. The denial follows a recent report alleging that the company had engaged in token swaps with various blockchain projects.

In a statement issued on social media, World Liberty Financial clarified that its recent asset movements were part of its treasury management strategy and not indicative of token sales. "To be clear, we are not selling tokens — we are simply reallocating assets for ordinary business purposes," the company stated.

The response came shortly after Blockworks reported that the firm was actively seeking to exchange at least $10 million worth of WLFI tokens for equivalent amounts of other cryptocurrencies. The report, citing anonymous sources, also claimed that a 10% fee was being charged for these transactions.

World Liberty’s $373 million War Chest
WLFI launch stated they are backed by Trump Source: WLFI official X account
Currently, World Liberty Financial holds approximately $373 million in digital assets, with significant stakes in Ether (ETH) and Wrapped Bitcoin (WBTC). The company’s crypto portfolio also includes assets such as USD Coin (USDC), Chainlink (LINK), Aave (AAVE), Tron (TRX), and Uniswap (UNI).

World Liberty reportedly bought 86,000 ETH in the past 8 hours, spending $220 million. This brings its total ETH holdings to $420 million.

The project initially gained attention during the lead-up to the U.S. presidential election, positioning itself as a DeFi platform offering yield-generating opportunities and lending services. By January 20, it had completed the sale of 20% of its total token supply, raising $300 million at a price of $0.015 per WLFI token. Due to what the company described as "massive demand," it announced plans to sell an additional 5% of its remaining tokens.

Justin Sun, the founder of Tron, emerged as a major investor in the project, purchasing $30 million worth of WLFI in November and later increasing his stake with a $45 million investment. His involvement raised further questions after he was appointed as an advisor to the company.

Despite its fundraising success, World Liberty Financial has faced skepticism from figures in the financial and crypto industries. Former White House communications director Anthony Scaramucci criticized the project, labeling it a "scammy grift," while billionaire investor Mark Cuban dismissed it as a "desperate" attempt by Trump to capitalize on the crypto market.

Adding to the concerns, the firm’s recent acquisition of Movement’s MOVE token sparked speculation about potential conflicts of interest. The purchase coincided with Movement’s discussions with the newly established Department of Government Efficiency, led by Elon Musk. However, Movement Labs denied any insider involvement.

As World Liberty Financial prepares for the anticipated Q3 2025 launch of its DeFi platform, scrutiny remains high. While the company insists that its treasury movements are standard practice, questions persist regarding its broader strategy and the influence of its high-profile backers.

Trump’s tariffs have not only shaken financial markets but have also impacted World Liberty Financial’s crypto holdings amid escalating trade tensions. With uncertainty looming, market participants wonder if this downturn presents a buying opportunity for long-term accumulation.

WLFI’s Crypto Portfolio Decline
World Liberty Financial (WLFI), backed by US President Donald Trump, recently invested $242.77 million in cryptocurrencies between January 19 and 31. Following Trump’s announcement of new tariffs, the crypto market experienced significant volatility, leading to a decline in WLFI’s portfolio by more than $51.7 million.

According to the latest findings by Spot On Chain, this represented a 21% decrease during the period. The most significant losses were in Ethereum (ETH), with a drop of $36.7 million (24.4%); Wrapped Bitcoin (WBTC), down $8 million (12.1%); and Ethena (ENA), which fell by $2.05 million (43.7%).

Despite these setbacks, Trump has stated that the "pain" from the newly imposed trade tariffs will be "worth the price." Given WLFI’s proactive asset management and aggressive accumulation in recent weeks, it remains to be seen whether the fund will capitalize on the current market dip to amass more assets.

The first week of the month kicked off with significant economic turbulence in the United States, with financial markets already in freefall. Trump’s latest tariffs on Canada, Mexico, and China have further intensified economic concerns, with the crypto market seeing billions in liquidation after plummeting to its lowest levels in 2025.

Markus Thielen, founder of 10x Research, noted that despite the recent trade measures being widely anticipated ahead of their February 1 implementation, they still managed to disrupt Bitcoin’s rally and put key technical support levels in jeopardy.

He went on to highlight that while the market was preoccupied with the DeepSeek saga, it appears to have underestimated the geopolitical fallout and potential retaliatory measures from foreign leaders. This oversight may have contributed to the increased volatility in crypto markets, as investors reacted to the broader economic implications of escalating trade tensions rather than just the expected tariff impositions themselves.

Factors at Play
Moving on, there are three crucial factors that could further affect the market’s trajectory. For instance, Monday’s ISM Manufacturing PMI will be a key indicator of business conditions.

Tuesday features the JOLTS Job Openings report, while Wednesday delivers both nonfarm employment data and the ISM Services PMI, which reflects the health of the service sector.

Additionally, Friday’s jobs report will reveal employment trends, such as job creation and unemployment rates, which will help investors gain insight into the US labor market.

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Trump’s World Liberty Financial launch failed, with a significant drop in audience and minimal project details shared. WLFI token is non-transferable and offers no financial benefits, limiting its appeal. Project links to Dough Finance, which was hacked in 2023, raising security concerns. Leadership includes controversial figures, potentially undermining project credibility. Donald Trump’s launch of a family owned crypto crypto project, World Liberty Financial, has raised more questions than excitement. Billed as a groundbreaking decentralized finance (DeFi) project, WLF’s recent launch not only failed to meet expectations but also left many questions about the project’s viability.

With ties to previous blockchain failures, a disappointing launch event, and a restrictive governance model, the project is riddled with red flags that cannot be ignored. The official launch of World Liberty Financial, held on September 16 during a live-streamed audio event on X Spaces(formerly Twitter), was nothing short of a flop. Hosted by Farokh Sarmad, co-founder of Rug Radio, the event drew an initial audience of over 170,000 listeners. However, as the conversation dragged on with non-crypto topics and minimal details about the project, the audience quickly dwindled. When Trump himself finally mentioned WLF, the audience had already dropped by more than 50%. The much-hyped project reveal was vague. Donald Jr. mentioned a possible tie to real estate and WLFI, the governance token. Even then, the details were limited. By the end of the event, over 70% of the initial audience had left. The project’s own Telegram channel didn’t post any updates, further adding to the confusion and disappointment.

Donald Trump’s WLFI Token: Governance Without Rewards
The centerpiece of WLFI’s ecosystem is the WLFI token. According to Zak Folkman, the project’s operations lead, is strictly a governance token. During the live stream, Folkman revealed that WLFI tokens will provide holders with the ability to make proposals. And vote on matters related to the platform. However, the token offers no economic benefits such as dividends. It’s non-transferable, meaning it can’t be traded on secondary markets. Folkman emphasized that 63% of WLFI’s supply will be sold exclusively to accredited investors in the U.S., with 17% set aside for user rewards and 20% allocated to the project’s team. This decision, while likely motivated by regulatory concerns, severely limits the token’s accessibility and appeal. With no direct financial incentive tied to holding WLFI, it raises the question: What will drive user engagement?

Troubling Ties To Hacked Dough Finance
Adding to the skepticism surrounding World Liberty Financial are its connections to Dough Finance, a DeFi project that was hacked for $1.8 million in a flash loan attack in mid-2023. Several key figures behind Dough are now part of WLF’s leadership team, including Zak Folkman, Chase Herro, and Octavian Lojnita. Their involvement, especially given Dough Finance’s past security vulnerabilities, raises concerns about