Trump’s Crypto Stake Soars to $5B Amid Governance Drama

Generated by AI AgentCoin World
Wednesday, Sep 3, 2025 11:36 pm ET2min read
Aime RobotAime Summary

- Trump family's 22.5B WLFI tokens, launched by World Liberty Financial, are valued at $5B as of Tuesday, despite a 50% price drop from its 40-cent peak.

- The token grants governance voting rights and is part of broader crypto strategy, with a stablecoin USD1 pegged to the U.S. dollar.

- Critics highlight conflicts of interest amid Trump's crypto ventures, including meme coins and $2B in digital assets acquired by his media firm.

- White House denies conflicts while watchdogs scrutinize influence over policy, as WLFI tokens remain locked with vesting schedules pending community vote.

World Liberty Financial’s $WLFI token, launched by President Donald

and his family, has triggered a significant windfall for the Trump family, with their stake in the token valued at approximately $5 billion as of Tuesday, according to multiple reports. The family holds 22.5 billion of the 100 billion WLFI tokens issued, and while the token's price dropped by nearly 50% from its peak of around 40 cents on Monday to a low of 21 cents, it recovered slightly to about 23 cents by Tuesday afternoon [1][2].

The token, which grants holders voting rights on governance issues for World Liberty Financial, is part of a broader strategy by the Trump family to leverage the crypto market. The company also offers a stablecoin, USD1, pegged to the U.S. dollar, with WLFI token holders able to influence the governance of the stablecoin through their voting rights [1]. The Trumps and other insiders collectively hold more than 20% of WLFI tokens, though the company’s terms limit any single wallet to no more than 5% of governance power, aiming to mitigate concentrated control [1].

WLFI’s initial price volatility is not uncommon for new token launches, according to Nic Puckrin, CEO of Coin Bureau. He noted that the decline from 40 cents to 21 cents is typical of early-stage tokens, where initial hype drives price spikes followed by profit-taking. While the drop is moderate compared to other token debuts, early backers have still seen strong returns from private sales [1]. The token had been sold in two private rounds at prices ranging from $0.015 to $0.05, according to an SEC filing [3]. A governance proposal to implement a “buyback and burn” program was introduced as the token hit its low, signaling a potential strategy to stabilize its value [3].

The Trump family’s involvement in the crypto space extends beyond WLFI, with previous ventures including the $TRUMP and $Melania meme coins. The $TRUMP meme coin, for instance, saw a surge in value when top holders were invited to dine with the president, raising concerns about the blurring of personal and political interests [1]. The

& Technology Group has also expanded into crypto, acquiring $2 billion in digital assets to reposition itself as an investment firm [1].

White House officials have repeatedly denied any conflicts of interest, with press secretary Karoline Leavitt stating that neither the president nor his family has engaged in or will engage in conflicts of interest. Despite these denials, watchdog groups and Democratic lawmakers continue to scrutinize the Trump family’s crypto investments and their influence over policy decisions [1].

As of now, the Trump family’s WLFI holdings remain locked, with the company stating that tokens held by founders and advisors will be subject to a vesting schedule yet to be determined. This means that the $5 billion valuation is currently on paper and not liquid. The unlocking schedule will be decided via a community vote, a process that will determine when the Trumps can begin cashing in their stake [3].

Source:

[1] New crypto token boosts Trump family's wealth by $5 billion (https://www.cbsnews.com/news/trump-wlfi-world-liberty-financial-crypto-wealth/)

[2] Trump family profits from launch of World Liberty Financial ... (https://abcnews.go.com/US/trump-family-profits-launch-world-liberty-financial-crypto/story?id=125179318)

[3] Trump Family's WLFI Token Debuts 5 To 15 Times Above ... (https://www.forbes.com/sites/zacheverson/2025/09/02/trump-crypto-token-wlfi-world-liberty-financial/)