World Liberty Financial, a DeFi project supported by President-elect Donald Trump, has purchased 5 million dollars worth of ETH on Wednesday, according to on-chain data. This brings the project's total ETH balance to over 56 million USD, mostly accumulated in the past few weeks.
A wallet linked to the Aave branch has made three separate transactions around four hours ago to receive 1,285 ETH from CoW Swap, a prominent decentralized exchange. Currently, ETH is trading at around 3,876 USD.
This wallet appears to be using profits from the WLFI token sale to purchase ETH, leveraging the large stablecoin holdings the project has. On-chain data also shows that World Liberty Financial has transferred funds directly from a smart contract address (0xe217e15b) to the 0x5be9a495 wallet, without any withdrawal transactions.
The move to convert stablecoins into ETH suggests that World Liberty Financial is deepening its involvement in the crypto economy. At the same time, this may reflect the project team's belief that ETH is a superior reserve asset compared to USD.
"They seem to be quickly converting all the stablecoins they have into ETH," said Eric Conner, a respected Ethereum investor and advisor. "Clearly, the Trump family is placing their trust in ETH rather than maintaining stablecoin holdings."
According to the terms and conditions of World Liberty, the limited liability company established by the Trump family to manage the project will receive 75% of the proceeds from the WLFI token sale and have full control over the treasury in a way they deem appropriate.
Data from Arkham Research shows that the World Liberty wallet (0x5be9a495) holds around 73 million dollars in Cryptoassets, including over 50 million dollars in ETH, 10 million dollars in Coinbase's cbBTC, along with 8 million dollars in USDC, 3 million dollars in USDT, and smaller holdings in altcoins.
Since its launch, World Liberty has executed 146 trades on CoW Swap, a platform that specializes in finding the best prices for users. Wednesday's transaction was one of the project's largest trades in recent times. Previously, the project had purchased around 2,000 ETH nine days ago and nearly 3,000 ETH 12 days ago, also through CoW Swap.
World Liberty began selling WLFI tokens on October 15, a few months after Eric Trump announced the project in August. According to Dune Analytics, the project team has raised over 55 million dollars from the WLFI token sale, still far from the 300 million dollar target this DeFi project had set.
Despite his previous skepticism towards Bitcoin, Donald Trump has publicly endorsed the crypto industry in his re-election campaign. He has pledged to fire U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, free Silk Road founder Ross Ulbricht "on my first day in office," and recently hired podcast host David Sachs as the "Crypto Czar" in his upcoming administration.
Trump also stated that World Liberty's lending and borrowing platform will "help make America the crypto capital of the world".
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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