Tron and Movement Labs Deny Trump-Backed Token Swap Deal

Tron and Movement Labs have both denied involvement in a proposed token swap deal with World Liberty Financial Inclusion (WLFI), a cryptocurrency project backed by former U.S. President Donald Trump and his family. The denial comes in response to a report from Blockworks alleging that WLFI representatives had pitched protocol teams on a deal to get included in the project's treasury.

A spokesperson from Tron told CoinDesk that there is no token swap agreement in place. Tron's TRX is the second-largest holding in WLFI's wallet, according to on-chain data curated by Arkham. The WLFI wallet currently holds 40.7 million TRX worth $9.3 million.

Movement Labs, whose MOVE token saw a significant jump in late January when WLFI purchased $2 million of it, also denied the existence of a swap agreement. Rushi Manche, co-founder of Movement Labs, told CoinDesk that they did not send tokens to anyone, including WLFI. "There weren't any deals — any backdoor deals. It was purely just market buying," Manche said.

The denials from Tron and Movement Labs underscore the importance of due diligence within the cryptocurrency sector, particularly concerning emerging token agreements. As the market continues to evolve, stakeholders are reminded to ascertain the legitimacy of such claims, particularly those linked to high-profile names, in order to mitigate risks associated with speculative ventures.