Trump-Backed WLFI Faces $110M Crypto Loss Amid Market Downturn

The Trump-backed World Liberty Financial Initiative (WLFI) has suffered a $110 million loss in its cryptocurrency portfolio due to declining market prices. Originally allocating $336 million across nine crypto assets, the portfolio has now devalued to $226 million—with Ethereum (ETH) bearing the biggest impact.

Ethereum accounts for 65% of WLFI’s holdings, making it the largest asset in its portfolio. WLFI’s ETH purchases were made at an average price of $3,240 per token, but with ETH currently trading around $2,059, its depreciation has significantly contributed to the overall loss.

Other assets within the portfolio have also declined, amplifying WLFI’s financial setback.

Breakdown of WLFI’s Crypto Holdings

An on-chain analysis of one of WLFI’s wallets reveals the following crypto holdings:

• Ethereum (ETH): 7,516 ETH worth $15.53M, down 5.3% in the past day.
• Tether (USDT): 13.59M USDT, which remains stable.
• Wrapped Bitcoin (WBTC): 162.69 WBTC valued at $13.36M, down 4.11%.
• Staked Ethereum (STETH): 4,974 STETH worth $10.27M, down 5.43%.
• Tron (TRX): 40.718M TRX valued at $9.54M, down 2.95%.
• WHITE Tokens: 10B WHITE worth $5.99M, showing the steepest drop of 24.17%.
• AETHUSDC Stablecoin: 5.013M, the value remains unchanged.
• MOVE Tokens: 7.581M MOVE worth $3.54M, down 6.6%.

Despite these losses, WLFI continues to hold stablecoin reserves, potentially as a hedge against market volatility.

WLFI’s Buying Strategy & The Absence of XRP

WLFI’s recent downturn follows a major buying spree on January 20, 2025, aligning with Donald Trump’s inauguration. During this period, the initiative acquired:

• 14,403 ETH at $3,333 per token
• 94.94 WBTC for $9.84M
• 177,928 LINK worth $4.7M
• 13,261 AAVE valued at $4.7M

Before this, WLFI also made substantial purchases in December 2024, including:

• 2,631 ETH for $10M at an average price of $3,801 per token
• 41,335 LINK worth $1M

No XRP in WLFI’s Portfolio: A Strategic Move?

A notable omission from WLFI’s holdings is XRP, despite its position as the third-largest cryptocurrency by market capitalization.

This absence has sparked speculation regarding a potential shift in U.S. government policy toward XRP. Some analysts suggest that if the Trump administration were to intervene in Ripple’s XRP escrow, it might eliminate the necessity for WLFI to purchase XRP from the open market.

Final Thoughts

With $110 million in losses, WLFI’s portfolio faces mounting pressure amid crypto market volatility. However, the initiative’s continued stablecoin holdings and strategic accumulation of major assets suggest a long-term investment approach.

As speculation around U.S. government involvement in Ripple’s XRP continues, market watchers remain focused on whether WLFI’s strategy will shift in response to evolving regulatory and financial landscapes.