Eric Trump and Donald Trump Jr. joined a Nasdaq bell-ringing ceremony in Times Square on Wednesday, celebrating a major development for World Liberty Financial, the crypto firm they co-founded.
What Happened: Nasdaq CEO Adena Friedman described the partnership as a milestone that could place the company at the forefront of decentralized finance, Bloomberg reported.
The $1.5 billion arrangement marks a significant departure from traditional corporate crypto strategies, bypassing established digital assets in favor of World Liberty's WLFI token, a project not yet listed on centralized exchanges.
Co-founders, including the sons of Trump envoy Steven Witkoff, say they are working toward making the token tradable.
The deal will see a little-known Las Vegas company, ALT5 Sigma Corp.(NASDAQ:ALTS), transition from its fintech and biotech roots into a major holder of WLFI tokens, acquiring 7.5% of total supply.
Before the announcement, ALT5's market value was under $150 million; it surged to nearly $850 million after the deal's disclosure.
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Why It Matters: Some investors remain cautious, with at least one declining to participate due to the lack of an open market for WLFI.
Morten Christensen, an existing token holder and investor, called the creation of a public treasury for an unlisted token "highly unusual" but acknowledged it could draw significant attention.
Eric Trump told Fox Business the move was about "bringing crypto to the traditional marketplace," tapping into investor demand for crossover opportunities.
The strategy draws comparisons to Michael Saylor's 2020 playbook, when Strategy began using its corporate balance sheet to buy Bitcoin.
However, unlike Bitcoin (CRYPTO: BTC) or Ethereum (CRYPTO: BTC), which have long track records and large user bases, WLFI remains a newcomer.
Critics, including Lex Sokolin of Generative Ventures, question why a public vehicle is being used for such a new asset, suggesting it may be designed to create buying pressure.
ALT5's treasury move aligns with a broader trend under the current U.S. administration, which has sought to position the country as a global crypto hub.
The SEC has indicated that most tokens are not securities, making such treasury structures more viable.
Beyond potential market exposure, these arrangements can offer tax advantages by deferring capital gains until the assets are sold.
While over 160 public companies hold Bitcoin on their balance sheets, deals involving newer tokens like SUI (CRYPTO: SUI) have also emerged.
Alliance Global Partners, which worked on the WLFI arrangement, recently structured a similar transaction for Mill City Ventures III to accumulate SUI.
Some industry experts draw parallels between today's surge in speculative token deals and pre-2008 financial exuberance.
Austin Campbell of Zero Knowledge Consulting cautioned that such models depend heavily on continuous price appreciation.
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