WLFI Sells $8M in Ethereum Amid $125M Loss

Trump-backed World Liberty Financial (WLFI) has recently sold 5,471 Ethereum (ETH) for approximately $8 million, at a price of $1,465 per coin. This transaction, which occurred on April 9, is a significant move for the company, as it comes amidst increasing financial losses. WLFI had previously acquired 67,498 ETH at an average price of $3,259, totaling around $210 million. At current prices, the firm is facing an unrealized loss of roughly $125 million.

Despite the financial setbacks, WLFI has been actively expanding its product offerings. On March 25, the company launched USD1, a stablecoin backed 1:1 by cash, short-term U.S. Treasuries, and equivalents. This stablecoin is designed for institutions seeking transparency and compliance, with reserves audited by third parties and custody handled by BitGo. USD1 is promoted as a safe alternative to algorithmic or undercollateralized tokens and is currently live on Ethereum and BNB Chain, with plans to expand to more networks in the future.

WLFI was established in 2024 and positions itself as a decentralized finance platform providing financial tools based on blockchain technology. The project raised $550 million through its token sale, including $75 million from Tron founder Justin Sun, who later joined the platform as an advisor. However, the firm has faced governance concerns and criticism over political influence due to its Trump connections. The Trump family gained majority control of the platform in January by acquiring a 60% share through a new holding company, WLF Holdco LLC. As a result, they will control 60% of the company’s operating profits after the platform is fully operational and are entitled to 75% of the token sales revenue under the new structure.

The sale of Ethereum by WLFI is a significant development, highlighting the challenges faced by companies in the cryptocurrency sector. The drop in Ethereum's value below $1,500 has exacerbated the financial difficulties for WLFI, which has been grappling with substantial losses. The sale of $8 million in Ethereum, despite the loss, suggests that WLFI is taking proactive measures to manage its financial situation. This move underscores the volatility and risks associated with cryptocurrency investments, particularly for companies that have significant holdings in digital assets.

The financial struggles of WLFI are not isolated incidents but reflect broader trends in the cryptocurrency market. The sale of Ethereum at a loss is a clear indication of the financial pressures that companies in this sector are facing. The decision to sell Ethereum, despite the loss, highlights the need for companies to adapt to changing market conditions and take proactive steps to manage their financial risks. This move by WLFI serves as a reminder of the importance of risk management and financial prudence in the cryptocurrency sector.