Author: jk, Odaily Planet Daily
As the American narrative and the Trump narrative have prevailed since Trump's victory and Bitcoin broke through the 100,000 mark, the market's attention is focused on World Liberty Financial (WLFI), which has a strong family connection. Since its launch in September 2023, WLFI has quickly attracted widespread attention from the market with its unique narrative and large-scale capital operations. In particular, during December, WLFI made a large purchase of nearly $45 million worth of crypto assets. This series of on-chain operations has brought a lot of speculation to the market. Investors and analysts are trying to answer a key question: What 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, characterized by its relationship with the Trump family and slogans such as "Be Defiant" that have strong Trump's personal attributes. On the official website of WLFI, Trump is listed as the "Chief Crypto Advocate", while his sons Donald Trump Jr., Eric Trump and Barron Trump are all "Ambassadors".
WLFI’s website. Source: WLFI’s official website
It should be noted that on the official website, the WLFI project actually avoids any legal connection with the Trump family. The project claims to be "the only DeFi platform inspired by Trump", and positions such as advocates and ambassadors cannot be considered 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 of his family members, nor any director, officer, or employee of the Trump Organization, DT Marks DEFI LLC, or their respective affiliates, is an officer, director, founder, or employee of World Liberty Financial (WLFI) or its affiliates. World Liberty Financial, Inc., its affiliates, or the World Liberty Financial platform is owned, managed, or operated by Trump, any of his family members, the Trump Organization, 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 offered 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 revenues under a service agreement. The definition of agreement revenues includes revenues from any source, net of agreed reserves, fees and other amounts, the specific 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 party is telling everyone openly: "We have close ties with the Trump family, but in fact there is no legal connection." It sounds irresponsible.
It is no wonder that almost no one buys into WLFI's tokens: the project's official website currently shows that the total token sales of 20 billion have only completed a quarter of the sales target since its launch, and this is in the context of such a bull market.
The token sale target was only 5 billion. Source: WLFI official website
However, this does not affect the fact that the assets purchased by this project have 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 suit?" are two completely different things. In the latter, Trump, as an advocate of encryption, has unprecedented appeal.
Large-scale crypto asset purchases
Previously, according to Spot On Chain monitoring, WLFI has been purchasing a variety of mainstream and emerging crypto assets through a major wallet address since November 2023.
The assets purchased include:
ETH: Total amount was US$30 million, 8,105 ETH were purchased, and the average purchase price was US$3,701 per ETH;
cbBTC: Total amount of 10 million USD, 102.9 cbBTC were purchased, with an average purchase price of 97,181 USD per cbBTC; (subsequently converted to WBTC)
LINK: Total amount was US$2 million, 78,387 LINK were purchased, and the average purchase price was US$25.51 per LINK;
AAVE: Total amount was $1.91 million, 5,886 AAVE were purchased, and the average purchase price was $324.4 per coin;
ENA: Total amount was US$750,000, 741,687 ENA were purchased, and the average purchase price was US$1.011 per ENA;
ONDO: Total amount of $250,000, 134,216 ONDOs were purchased, and the average purchase price was $1.86 per coin
Subsequently, World Liberty Financial announced a partnership with Ethena Labs. The two parties are seeking long-term cooperation, which will start with Ethena's yield token sUSDe.
It can be seen that even after several pullbacks after breaking through 100,000 and the sharp drop affected by the hawkish interest rate cut news of the Federal Reserve, as of December 19, the six tokens purchased by WLFI still maintained their gains within their 30-day trend: Bitcoin and Ethereum increased by 10% and 15% respectively, Chainlink by 65.1%, Aave by 103.9%, Ethena by 89.4%, and Ondo by 85.1%. In other words, WLFI's purchase targets have indeed become the direction of the market when it rises, so that it can maintain the 30-day gains under the big pullback.
So, which tokens might WLFI buy next?
WLFI What is the next potential buy?
We have three dimensions to speculate:
Polychain’s Investment Assets
It can be seen on the official website that Luke Pearson from Polychain has become one of the advisors of WLFI. There is a considerable possibility that the tokens purchased will come from Polychain’s investment portfolio. According to Rootdata, we can see that not every project in the Polychain investment portfolio has issued a token, and even fewer can be called senior DeFi projects.
Coingecko Top 100 DeFi Assets by Market Cap
At the same time, the assets previously purchased by WLFI are all in the top 100 list of Coingecko market capitalization, probably due to considerations of volatility and drawdown. At the same time, judging from the cooperation between WLFI and Ethena, its purchase of tokens is likely to carry subsequent cooperation considerations; using the popularity and influence of the purchase to reach cooperation with larger DeFi projects in the market, and then feeding back the brand value of WLFI itself as a DeFi protocol.
COWSwap’s listed assets (less impact)
The decentralized trading platform used by WLFI is CowSwap, which is also one of the more popular DEXs. Its products also include AMM, etc. In the interface on CowSwap, it can be found that there are 374 assets that have been officially verified by CowSwap without manually entering the contract if the network is Ethereum. It can be used as the largest range to choose from. However, CowSwap does not support many networks. In addition to Ethereum, there are only Gnosis, Base, Arbitrum One and Sepolia test networks. 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, purchase manually or OTC.
So based on these considerations, what tokens can we find?
Also a Polychain investment project/CowSwap listed asset/and Coingecko top 100 market cap:
Maker (MKR), recently upgraded to SKY
Uniswap (UNI)
DYDX (currently ranked 113th in market capitalization, not much different)
At the same time, if we consider projects that are not in Polychain’s portfolio but have high brand value, we can add the following four currencies: Lido, Pendle, Eigen and Curve. These projects also have some "American attributes" and it is also possible to reach cooperation. If the market value is expanded, 1inch and Morpho are also less likely.
Overall, WLFI's investment strategy is strategic and shows strong fund operation capabilities. In the future, WLFI's purchase targets may continue to focus on high-quality DeFi assets in the top 100 by market value, and this big pullback may also become the best window for buying. During Trump's next term, WLFI's buying actions may provide important signals for investment decisions.
