The Trump family has reportedly seen a staggering $5 billion increase in their paper wealth following the trading debut of their flagship crypto venture’s new digital currency.
Trump Family Gains Major Wealth Boost As WLFI Token Hits Open Market
The Trump family, including President Donald Trump, owns nearly a quarter of all WLFI tokens. The token’s trading debut has marked a substantial financial turning point for the family, potentially making it their most valuable asset, surpassing their long-standing property portfolio, reported The Wall Street Journal.
World Liberty Financial, co-founded by Trump’s three sons, introduced WLFI in a manner similar to an initial public offering, making it available for purchase and sale on the open market. Before this, WLFI tokens were privately held and could not be traded.
The launch has assigned a real-world valuation to the Trump family’s holdings, which were previously valued based on private sales. Despite the tokens held by the founders and team members remaining “locked”, the trading debut has significantly increased the family’s paper wealth.
WLFI Token Surges In An Hour, Then Crashes 46%
Trading of WLFI spiked on crypto exchanges early Monday, with roughly $1 billion worth of tokens exchanged in just one hour.
The token, linked to the Trump family, started trading at $0.228 and rose to a high of $0.46 within half an hour. However, the token’s value crashed after its initial rise on the first trading day to nearly $0.25, reflecting a 46% decline from the highs. At its height, the Trumps' holdings were valued at more than $6 billion.
However, converting this newfound wealth into cash may prove challenging, as even minor selling of cryptocurrencies can cause prices to plummet.
See Also: Trump’s Immigration Crackdown Leaves US Short 1.2 Million Workers, Inflation Fears Mount
Trump Family Crypto Venture Faces Scrutiny Over Ethics
World Liberty Financial, co-founded by Trump’s three sons, saw a rapid rise in the crypto industry this year, coinciding with the president’s efforts to promote the sector from the White House.
Ahead of WLFI's trading debut, World Liberty acquired a publicly listed firm and raised $750 million to buy its cryptocurrency. The transaction, involving the same party as buyer and seller, could earn the Trumps about $500 million, as they retain up to 75% of token sale revenues, as per a previous report by the WSJ.
World Liberty Financial (WLFI), a Trump family-run cryptocurrency venture, raised over $550 million from global investors. The firm, 60% owned by a Trump family entity, has faced scrutiny for ethically questionable investor pitches, raising concerns about conflicts between presidential power and private business interests. Industry insiders, including Andre Cronje of SonicLabs, criticized WLFI's practices, calling it a “black spot.”
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
