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    Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

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    Trump’s World Liberty Financial (WLFI) Faces $51M Loss in Latest Crypto Crash

    Story Highlights
    • WLFI has suffered over $51 million in unrealized losses on its $242 million crypto portfolio.

    • Major holdings like Ethereum and Wrapped Bitcoin have seen significant price drops, contributing heavily to the losses.

    • Ethena (ENA) experienced the most dramatic decline (over 43%), raising concerns about the firm's exposure to volatile assets.

    World Liberty Financial, a cryptocurrency investment firm backed by Donald Trump is experiencing significant losses in its digital asset portfolio. According to blockchain analytics platform SpotOnChain, the firm invested $242.77 million in various cryptocurrencies between January 19 and January 31, 2024.

    However, the portfolio has since dropped by over 21%, leading to an unrealized loss of $51.77 million.

    But how did this happen? And what does this mean for the firm’s future in the volatile crypto market?

    Major Losses in Key Assets

    The firmโ€™s largest holdingsโ€”Ethereum (ETH), Wrapped Bitcoin (WBTC), and Ethena (ENA)โ€”have taken major hits, which have contributed to the overall decline in the portfolioโ€™s value.

    TokenAccumulation (Tokens)Total USD SpentAvg. Buy PriceCurrent PricePnL (USD)PnL (%)
    ETH45,405$149.95M$3,303$2,495– $36.67M-24.45%
    WBTC629.095$66.84M$106,248$93,426– $8.07M-12.07%
    TRX40,718,118$10.00M$0.246$0.209– $1.48M-14.78%
    AAVE13,261$4.70M$354.42$227.76– $1.68M-35.74%
    ENA5,037,299$4.70M$0.933$0.525– $2.05M-43.72%
    LINK177,928$4.70M$26.415$18.42– $1.42M-30.27%
    MOVE2,397,674$1.88M$0.784$0.617– $401K-21.36%

    Ethereum and Wrapped Bitcoin Hit Hard

    Ethereum (ETH), the firmโ€™s largest holding, has fallen by 24.45%, dropping from an average buy price of $3,303 to $2,495, resulting in a $36.67 million loss.

    Wrapped Bitcoin (WBTC), the second-largest position, has declined by 12.07%, causing an $8.07 million loss.

    Other assets like TRON (TRX) and AAVE have also suffered double-digit losses, adding to the portfolioโ€™s struggles. However, Ethena (ENA) has experienced the biggest drop, falling 43.72% from $0.933 to $0.525. The firmโ€™s $4.7 million investment in ENA has lost over $2 million in value, raising concerns about its exposure to volatile assets.

    Crypto Markets Remain Unpredictable

    World Liberty Financialโ€™s recent losses highlight the unpredictable nature of the cryptocurrency market. Despite backing from the Trump family and a diversified portfolio, the firm has been impacted by sharp market downturns that have affected even top digital assets.

    While these short-term losses are substantial, the potential for a market rebound suggests there may be room for recovery.

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