World Liberty Financial Portfolio Declines by $110 Million Amid Ethereum Price Drop

World Liberty Financial (WLFI), a cryptocurrency investment platform backed by prominent figures, has suffered a $110 million decline in its portfolio value. 

This drop is primarily attributed to the significant depreciation of Ethereum, the largest asset in WLFI's portfolio. Despite the losses, WLFI continues to expand its portfolio and establish new blockchain partnerships.

What is World Liberty Financial (WLFI)?

Launched in September 2024, World Liberty Financial (WLFI) is a cryptocurrency and decentralized finance (DeFi) platform associated with the immediate family of former President Donald Trump.

WLFI aims to build a decentralized crypto banking system where users can lend and borrow cryptocurrencies without involving traditional intermediaries. Utilizing blockchain technology, this platform enables users to bypass conventional banking and financial technology institutions.

Read More: How to Buy World Liberty Financial: Learn all about Buy WLF

Ethereum Leads WLFI’s Losses

Ethereum has been the primary contributor to WLFI’s losses, accounting for 65% of the portfolio’s value decline. The platform purchased Ethereum at an average price of $3,240, but the asset is currently trading around $2,000. As a result, WLFI’s Ethereum holdings have depreciated by approximately $80.85 million.

Other cryptocurrencies in WLFI’s portfolio have also been affected, albeit to a lesser extent. Tron has remained the most stable, experiencing only a 5% decrease. Additional losses stem from holdings such as stETH, WHITE, Movement, and Ondo.

Ethereum Loss Details

• Average Purchase Price: $3,240
• Current Price: $2,000
• Loss: Approximately $80.85 million
• Portfolio Loss Percentage: 65%

World Liberty Financial Continues Investments

Despite significant losses, WLFI remains actively engaged in cryptocurrency investments and expansion efforts. On March 6, the platform acquired Ethereum, Wrapped Bitcoin, and Movement Network tokens worth $21.5 million. This acquisition reflects confidence in the long-term potential of the cryptocurrency market.

WLFI also announced a new partnership with Sui, a blockchain project founded by former Meta programmers. This collaboration aims to explore decentralized finance (DeFi) opportunities and expand WLFI’s presence in the blockchain sector. Analysts speculate that this partnership could be part of a broader strategy to integrate with other blockchain ecosystems.

Trump and Allies Maintain Control Over WLFI Operations

Established in 2024, World Liberty Financial has quickly positioned itself as a key player in DeFi. Political figures and their close family members control over 60% of the project, raising concerns about their growing influence in the cryptocurrency market.

In January 2025, WLFI successfully raised $300 million through a token sale. Despite its losses, the platform continues to attract strong investor interest. Supporters view WLFI as a crucial component of a broader financial strategy.

U.S. Strategic Crypto Reserve

Recent developments regarding the U.S. government’s plans to establish a strategic crypto reserve have sparked debates, bringing the political figures involved with WLFI into the spotlight. Critics argue that their involvement in the industry could lead to allegations of conflicts of interest, particularly regarding major investment initiatives.

Some question whether government policies will favor WLFI, enabling its expansion and potential market monopoly. However, the TRP Organization has denied ethical concerns surrounding WLFI’s operations. It asserts that an independent investment firm, along with the politician’s children and external ethics attorneys, manages the platform. The organization insists that the politician himself has no direct control over WLFI’s activities.

Implications for World Liberty Financial and the Cryptocurrency Market

Changes in WLFI’s financial transactions indicate that the company remains committed to cryptocurrencies despite short-term fluctuations. Its recent expenditures suggest that WLFI views this downturn as an opportunity to acquire more assets at lower prices. Should Ethereum and other holdings recover, WLFI may regain much of its lost value.

Furthermore, political involvement in cryptocurrency continues to be a subject of regulatory scrutiny. The intersection of DeFi and politics presents risks that could influence financial policies and market dynamics. As WLFI expands, it will likely face increasing regulatory impacts on the cryptocurrency industry.

As of the time of writing, Ethereum (ETH) is trading at $2,019.23, reflecting a 4.67% decline in the past 24 hours. ETH’s price trend remains bearish, with its market capitalization also decreasing by 4.65% to $243.52 billion.

FAQ

What is World Liberty Financial (WLFI)?
Launched in September 2024, World Liberty Financial (WLFI) is a cryptocurrency and decentralized finance (DeFi) platform.

Does Ethereum Lead WLFI’s Losses?
Yes, Ethereum is the primary contributor to WLFI’s losses, accounting for 65% of the portfolio’s decline in value.

What is the U.S. Strategic Crypto Reserve?
The U.S. government’s plans to create a strategic crypto reserve have been debated, with political figures involved in WLFI coming under scrutiny.