World Liberty Financial (WLFI) Makes Bold Investments Amid Floating Losses

World Liberty Financial (WLFI), a decentralized finance (DeFi) project backed by the Trump family, has been in the news lately for its “aggressive investment strategy.”

In just the last 25 minutes, WLFI has used 9.84 million USDC to purchase 94.9 Wrapped Bitcoin (WBTC)—just one of the many high-value tokens it has added to its already sizable portfolio. But WLFI’s ambition has not come cheap, and it now faces a not-so-rosy picture of a floating loss of $8.9 million across all its investments.

From the very start, WLFI has used a total of $232 million to acquire seven significant tokens. Even with these plucky purchases, the project has yet to see the portfolio return something reasonably expected from such high-level investments. The standout, so far, is Justin Sun (@justinsuntron), who holds a fairly substantial paper profit on TRX, the native token of the TRON network.

WLFI’s recent acquisition of 94.9 WBTC highlights its continued faith in digital high-value assets. But this strategy has attracted scrutiny due to its present unprofitableness and its dependence on a lot of outside capital, including large checks from TRON DAO.

The critical role that the governing body of the TRON blockchain has played in WLFI’s development and growth cannot be overstated. In November 2024, TRON DAO, the governing body of TRON, made an initial investment of $30 million in WLFI, becoming the major stakeholder in that project. At roughly the same time, Justin Sun, the founder of TRON, came on board as a consultant to WLFI, which pretty much guaranteed that TRON would be well-versed in what was going on with that project.

The impact of Sun on WLFI has been significant. On January 18, 2025, he conducted an AMA session where he laid out a thoroughgoing analysis of the $TRUMP token, which is a crucial aspect of the WLFI ecosystem. Sun was very upbeat about the future of the environment in which cryptocurrency regulation occurs, seeing it as moving toward a friendly and positive space for projects like WLFI to operate in.

This optimism was reflected in the actions of TRON DAO. On January 20, 2025, TRON DAO made an additional investment of $45 million in WLFI, bringing its total investment to $75 million. On the same day, Justin Sun, the founder of TRON, personally bought $15 million worth of WLFI tokens, further signaling the group’s confidence in the project.

WLFI has, in a series of substantial on-chain transactions, also augmented its possession of TRX, the native token of the TRON blockchain.

• January 21, 2025: The on-chain address for WLFI made its first significant foray into TRX, acquiring tokens to the tune of $4.7 million.

This immediately positioned TRX as one of the top nine tokens held by WLFI.

• January 22, 2025: WLFI made another major token purchase, this time acquiring 10.81 million tokens of TRX. This purchase left TRX as one of the project’s top five holdings, surpassed in value only by a handful of other cryptocurrencies, including USDT.

The increasing importance of TRX correlates with Justin Sun’s association with the project and the substantial funding TRON DAO provides.

Even though WLFI makes large investments, it isn’t free of problems. Right now, WLFI has a loss of $8.9 million that’s floating. This is bound to make investors and analysts a little uneasy. Of course, the partnership with TRON DAO and the Trump family gives the venture a lot of credibility. But, given that the cryptocurrency market is so volatile, is it really a good idea to have such an aggressive investment strategy? We asked ourselves this question and came up with some possible answers.

The future regulatory environment could be quite favorable for WLFI, if Justin Sun’s optimism is to be believed. Should crypto regulations loosen up, the high-value tokens that WLFI has heavily invested in—like WBTC and TRX—could make that investment worth their while.

World Liberty Financial’s audacious investment strategy and deep connections to TRON DAO and Justin Sun have made it a noteworthy player in the DeFi space. But its current floating losses highlight the risks tied to those strategies and connections—bold moves in an extremely volatile market.

As WLFI moves forward, expanding its portfolio and strengthening its partnership with TRON, it will be closely watched—its every market move scrutinized—for signs that it can overcome the current “difficult market conditions” it cites as a reason for its deepening financial hole, and deliver actual returns for its investors.

WLFI’s current performance could very well be a window into its future in the high-stakes game of cryptocurrency. Whether it can turn long-term losses into gains worthy of a mention in the next edition of How We built This remains to be seen.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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