What assets might Trump family project WLFI buy next?

Author: jk, Odaily Planet Daily

As the American narrative and the Trump narrative take hold since Trump won the election and Bitcoin crossed the $100,000 mark, the market's eyes are focused on World Liberty Financial (WLFI), to which the family has strong ties. Since its launch in September 2023, WLFI has quickly attracted widespread attention from the market with its unique narrative and large-scale capital operations. Especially during December, WLFI aggressively purchased crypto assets worth nearly $45 million. This series of on-chain operations brought a lot of speculation to the market. Investors and analysts alike are trying to answer a key question: Which tokens might WLFI continue to buy in the future?

Background information

World Liberty Financial (WLFI) was officially launched in September 2023. It claims to be a DeFi platform, which is characterized by its relationship with the Trump family and values ​​such as "Be Defiant" (choosing rebellion) that have strong personal attributes of Trump. slogan. As can be seen on WLFI's official website, Trump is listed as " Chief Crypto Advocate", while his sons Donald Trump Jr., Eric Trump and Barron Trump all hold the position of "Ambassador" ).

WLFI 's website. Source: WLFI official website

It should be noted that on the official website, the WLFI project actually legally avoids all contact with the Trump family. The project claims to be “the only DeFi platform inspired by Trump” , and the positions of advocate and ambassador cannot be counted as any real positions involved in management. What's more, there is a small text at the bottom of the website:

" Neither Donald J. Trump, nor any member of his family, nor any director, officer or employee of the Trump Organization, DT Marks DEFI LLC, or their respective affiliates, is affiliated with World Liberty Financial (WLFI) or their affiliates None of the Company 's officers, directors, founders or employees owns, manages or operates World Liberty Financial, Inc., its affiliates or the World Liberty Financial platform. Group, DT Marks DEFI LLC, or their respective directors, officers, employees, affiliates or principals .

The use and sale of $WLFI tokens 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 receive 75% of the net Agreement income . The definition of income under the Agreement includes income from any source, net of agreed reserves, fees and other amounts, the exact amount of which cannot be determined.

World Liberty Financial and its $WLFI token are not political in nature and are not part of any political campaign. "

In general, the project team is telling everyone: " We are inextricably linked to the Trump family, but in fact there is no legal connection." It doesn't sound very responsible. .

It’s no wonder that basically no one buys WLFI’s tokens: currently, the project’s official website shows that the total token sales of 20 billion have only completed a quarter of the sales target in such a long time since its launch, and it was only in Against the background of such a bull market.

The token sale goal has only reached 5 billion. Source: WLFI official website

However, this does not affect the assets purchased by this project to become a market trend to some extent; after all, " willing to invest in the Trump family" and "what assets has the Trump family invested in? Can I follow the order?" Are two completely different things. On the latter, Trump’s appeal as an encryption advocate is unprecedented.

Large scale crypto asset purchases

Previously, according to Spot On Chain monitoring, WLFI has purchased a variety of mainstream and emerging crypto assets through a major wallet address since November 2023.

The assets it purchased include:

• ETH: The total amount is US$30 million, 8,105 ETH were purchased, and the average purchase price was US$3,701 per coin;

• cbBTC : The total amount is 10 million US dollars, 102.9 cbBTCs were purchased, and the average purchase price was 97,181 US dollars per piece; (subsequently converted to WBTC)

• LINK : The total amount is US$2 million, 78,387 LINKs were purchased, and the average purchase price was US$25.51 per coin;

• AAVE : The total amount was US$1.91 million, 5,886 AAVE were purchased, and the average purchase price was US$324.4 per coin;

• ENA : The total amount is US$750,000, 741,687 ENAs were purchased, and the average purchase price was US$1.011 per coin;

• ONDO : The total amount is US$250,000, 134,216 ONDOs were purchased, and the average purchase price was US$1.86 per coin.

Subsequently, World Liberty Financial announced a cooperation with Ethena Labs. The two parties are seeking long-term cooperation, which will start with Ethena's revenue token sUSDe.

It can be seen that even after experiencing several retracements after breaking through 100,000 and a sharp decline affected by the news of the Federal Reserve's hawkish interest rate cut, as of December 19, the six tokens purchased by WLFI still maintained their 30-day trend. Increase: Bitcoin and Ethereum increased by 10% and 15% respectively, Chainlink at 65.1%, Aave at 103.9%, and Ethena is 89.4% and Ondo is 85.1%. In other words, WLFI's buying target has indeed become the trend when the market rises, so that it can maintain its 30-day gain under a large retracement.

So, which tokens might WLFI buy next?

WLFI’s potential next asset to buy?

We have three dimensions to speculate on:

Polychain Investment Assets

As can be seen on the official website, Luke Pearson from Polychain has become one of WLFI's advisors. It is quite possible that the tokens purchased will come from Polychain's investment portfolio. According to Rootdata, we can see that not every project in the Polychain portfolio has issued coins, and even fewer can be called senior DeFi projects.

Coingecko’s top 100 DeFi assets by market capitalization

At the same time, the assets previously purchased by WLFI are all in the top 100 list of Coingecko by market capitalization, possibly due to concerns about volatility and retracement. At the same time, judging from the cooperation between WLFI and Ethena, its purchase of tokens is likely to have subsequent cooperation considerations; use the popularity and influence of the purchase to cooperate with larger DeFi projects in the market, and then feed back to itself The brand value of WLFI as a DeFi protocol.

COWSwap’s listed assets (lower impact)

The decentralized trading platform used by WLFI is CowSwap, which is also one of the more popular DEXs at the moment. Its products also include AMM. On the interface on CowSwap, you can find that there are 374 assets that have been officially verified by CowSwap without the need to manually enter the contract. If the network is selected as Ethereum, you can choose from it as the largest range. CowSwap does not support many networks. In addition to Ethereum, it only supports Gnosis, Base, Arbitrum One and Sepolia testnets. Other purchases of WLFI are also likely to occur on CowSwap, so relatively speaking, the possibility for DeFi projects on Solana is not that great. Of course, the impact of this factor is relatively small. WLFI can completely purchase assets of other projects through other platforms that support Solana, manual purchase, or OTC purchase.

So based on these considerations, what token can be found?

It is also an investment project of Polychain/a listed asset of CowSwap/and a top 100 market value Coingecko:

• Maker (MKR), recently upgraded to SKY

• Uniswap (UNI)

• DYDX (currently ranked 113 in market capitalization, not much different)

At the same time, if projects that are not in Polychain's investment portfolio but have high brand value are also taken into consideration, the following four currencies can be added: Lido, Pendle, Eigen and Curve . These projects also have some "American attributes", so cooperation is also possible. If the market value is expanded later, then 1inch and Morpho are also less likely.

Taken together, WLFI's investment strategy is strategic and shows strong capital operation capabilities. In the future, WLFI’s purchase targets may continue to focus on the top 100 high-quality DeFi assets by market capitalization, and this major correction may also become the best window for purchase. WLFI's buying action may provide important signals for investment decisions during the remainder of Trump's term.