
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
Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election 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 firmโs largest holdingsโEthereum (ETH), Wrapped Bitcoin (WBTC), and Ethena (ENA)โhave taken major hits, which have contributed to the overall decline in the portfolioโs value.
Token | Accumulation (Tokens) | Total USD Spent | Avg. Buy Price | Current Price | PnL (USD) | PnL (%) |
---|---|---|---|---|---|---|
ETH | 45,405 | $149.95M | $3,303 | $2,495 | – $36.67M | -24.45% |
WBTC | 629.095 | $66.84M | $106,248 | $93,426 | – $8.07M | -12.07% |
TRX | 40,718,118 | $10.00M | $0.246 | $0.209 | – $1.48M | -14.78% |
AAVE | 13,261 | $4.70M | $354.42 | $227.76 | – $1.68M | -35.74% |
ENA | 5,037,299 | $4.70M | $0.933 | $0.525 | – $2.05M | -43.72% |
LINK | 177,928 | $4.70M | $26.415 | $18.42 | – $1.42M | -30.27% |
MOVE | 2,397,674 | $1.88M | $0.784 | $0.617 | – $401K | -21.36% |
Ethereum and Wrapped Bitcoin Hit Hard
Ethereum (ETH), the firmโs 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 portfolioโs struggles. However, Ethena (ENA) has experienced the biggest drop, falling 43.72% from $0.933 to $0.525. The firmโs $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 Financialโs 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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