With the prevalence of the American narrative and the Trump narrative since Trump's victory and the breakthrough of Bit above 100,000, the market's attention is now focused on World Liberty Financial (WLFI), which has a strong relationship with his family. Since its launch in September 2023, WLFI has quickly attracted widespread market attention with its unique narrative and large-scale capital operations. Particularly during December, WLFI made a massive purchase of nearly $45 million worth of crypto assets, and this series of on-chain operations has brought many speculations to the market. Investors and analysts are trying to answer a key question: What tokens might WLFI continue to buy in the future?
Background Information
World Liberty Financial (WLFI) was officially launched in September 2023, claiming to be a DeFi platform with the characteristics of relying on the relationship with the Trump family and slogans with strong Trump personal attributes such as "Be Defiant". On the WLFI website, Trump is listed as the "Chief Crypto Advocate", while his sons Donald Trump Jr., Eric Trump, and Barron Trump are listed as "Ambassadors".
It is worth noting that on the website, WLFI has actually avoided any legal connection with the Trump family. The project claims to be the "only DeFi platform inspired by Trump", and the positions of advocates and ambassadors cannot be considered as any real positions of participation in management. Moreover, at the bottom of the website, there is a small paragraph:
"Donald J. Trump, any of his family members, or any director, officer or employee of the Trump Organization, DT Marks DEFI LLC or their respective affiliates, are not officers, directors, founders or employees of World Liberty Financial (WLFI) or its affiliates. The ownership, management or operation of World Liberty Financial, Inc., its affiliates or the World Liberty Financial platform is not held by Trump, any of his family members, the Trump Organization, DT Marks DEFI LLC, or their respective directors, officers, employees, affiliates or principals.
The use and sale of the $WLFI token and the World Liberty Financial platform are provided solely by World Liberty Financial or its affiliates. DT Marks DEFI, LLC and its affiliates (including Donald J. Trump) have received or may receive approximately 22.5 billion tokens from World Liberty Financial and are entitled to 75% of the net protocol revenue under a service agreement. The definition of protocol revenue includes revenue from any source, net of agreed reserves, fees and other amounts, the specific amount of which is yet to be determined.
World Liberty Financial and its $WLFI token are not political in nature and are not part of any political campaign."
In summary, the project is openly telling everyone: "We have a deep connection with the Trump family, but legally we have no connection at all." It doesn't sound very responsible.
No wonder hardly anyone is buying the WLFI token: currently, the project website shows that only a quarter of the 20 billion token sales target has been completed since its launch, and this is against the backdrop of such a bull market.
However, this does not affect the fact that the assets purchased by this project have become a certain market trend; after all, "being willing to invest in the Trump family" and "what assets has the Trump family invested in? Can I follow suit" are two completely different things. In the latter case, as the winner of the crypto advocate, Trump's appeal is unprecedented.
Large-scale Crypto Asset Purchases
Odaily previously reported that according to Spot On Chain monitoring, WLFI has made large-scale purchases of various mainstream and emerging crypto assets through a major wallet address since November 2023.
The assets it has purchased include:
· ETH: A total of $30 million, purchasing 8,105 ETH at an average price of $3,701 per ETH;
· cbBTC: A total of $10 million, purchasing 102.9 cbBTC at an average price of $97,181 per cbBTC; (later swapped for WBTC)
· LINK: A total of $2 million, purchasing 78,387 LINK at an average price of $25.51 per LINK;
· AAVE: A total of $1.91 million, purchasing 5,886 AAVE at an average price of $324.4 per AAVE;
· ENA: A total of $750,000, purchasing 741,687 ENA at an average price of $1.011 per ENA;
· ONDO: A total of $250,000, purchasing 134,216 ONDO at an average price of $1.86 per ONDO.
Odaily later reported that World Liberty Financial announced a partnership with Ethena Labs, and the two parties are seeking long-term cooperation, starting with Ethena's yield token sUSDe.
It can be seen that even after the breakthrough of 100,000 and the subsequent retracements and the big crash influenced by the Fed's hawkish rate cut news, as of December 19, the six tokens purchased by WLFI still maintained a 30-day uptrend: BTC and ETH gained 10% and 15% respectively, LINK gained 65.1%, AAVE gained 103.9%, Ethena gained 89.4%, and ONDO gained 85.1%. In other words, WLFI's investment targets have indeed become the market trend during the uptrend, allowing them to maintain a 30-day gain even during the big retracement.
So, what tokens might WLFI buy next?
What are WLFI's Potential Next Investment Assets?
We have three dimensions to speculate:
Polychain's Investment Assets
On the website, we can see that Luke Pearson from Polychain has become one of WLFI's advisors. (You can see the information on the other advisors and team members in this article: Who are the decision-makers behind WLFI, the Trump project that has made massive crypto asset purchases?) There is a considerable possibility that the tokens purchased will come from Polychain's investment portfolio. According to Rootdata, we can see that not every project in Polychain's portfolio has issued tokens, and there are even fewer that can be considered veteran DeFi projects.
Top 100 DeFi Assets by CoinGecko Market Cap
At the same time, the assets previously purchased by WLFI were all within the top 100 by CoinGecko market cap, which may be due to considerations of volatility and retracement. Also, given the cooperation between WLFI and Ethena, the purchase of tokens may also carry considerations for subsequent cooperation; using the heat and influence of purchases to reach cooperation with larger DeFi projects in the market, and then feed back to the brand value of WLFI itself as a DeFi protocol.
Assets Listed on COWSwap (Relatively Small Impact)
The decentralized trading platform used by WLFI is CowSwap, which is one of the more popular DEXs currently, with products including AMM, etc. On the CowSwap interface, it can be found that the assets that have been officially verified by CowSwap and do not require manual input of the contract, if the network is Ethereum, there are a total of 374, which can be taken as the maximum range to choose from. CowSwap only supports a few networks other than Ethereum, including Gnosis, Base, Arbitrum One, and the Sepolia test network. WLFI's other purchases are also very likely to have occurred on CowSwap, so the possibility of DeFi projects on Solana is relatively smaller. Of course, this factor has a relatively small impact, as WLFI can completely purchase the assets of other projects through other platforms supporting Solana, manual purchases, or OTC purchases.
So, what tokens can we find based on these considerations?
Polychain's investment projects/CowSwap's listed assets/Top 100 by CoinGecko market cap:
· Maker (MKR), recently rebranded as SKY
· Uniswap (UNI)
· DYDX (currently ranked 113 by market cap, not far off)
At the same time, if we consider projects with high brand value that are not in the Polychain portfolio, the following four cryptocurrencies can be included: Lido, Pendle, Eigen, and Curve. These projects also have some "American attributes" and collaboration is also possible. If we expand the market capitalization a bit further, then 1inch and Morpho also have a smaller possibility.
Overall, WLFI's investment strategy has a certain strategic nature, showing strong capital operation capabilities. In the future, WLFI's investment targets may continue to focus on high-quality DeFi assets among the top 100 by market capitalization, and this recent major correction may also become the best window for buying. In the upcoming Trump administration, WLFI's buying actions may provide important signals for investment decisions.
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