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

World Liberty Financial, a cryptocurrency investment firm backed by Donald Trump Donald Trump   Donald J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician   Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money"   2024 – Campaign signals potential openness to crypto-friendly reforms   2025 –  Elected as the 47th President of the United States from the Republican Party.   A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture.     President 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 firm’s largest holdings—Ethereum (ETH), Wrapped Bitcoin (WBTC), and Ethena (ENA)—have taken major hits, which have contributed to the overall decline in the portfolio’s value.

Ethereum and Wrapped Bitcoin Hit Hard

Ethereum (ETH), the firm’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 portfolio’s struggles. However, Ethena (ENA) has experienced the biggest drop, falling 43.72% from $0.933 to $0.525. The firm’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 Financial’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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