World Liberty Financial, a financial platform backed by the family of elected President Donald Trump, has made a significant move in the crypto market by swapping $10 million worth of Coinbase-wrapped Bitcoin (cbBTC) for Wrapped Bitcoin (WBTC).
Major Swap Event in the Crypto Market
The swap occurred on the same day a court ruled against BiT Global, a WBTC custodian, in a lawsuit aimed at preventing Coinbase from removing #wBTC from its platform.
• cbBTC is the wrapped Bitcoin version introduced by Coinbase in September 2024 but is set to be delisted in November.
• WBTC, a token representing $BTC , is widely used in DeFi applications on blockchains other than Bitcoin.
Justin Sun Joins as Advisor
This swap action comes right after Justin Sun, the founder of the Tron blockchain, became an advisor to World Liberty Financial.
• Sun purchased a $30 million stake in this platform last month through WLFI tokens.
• Sun is a controversial figure, previously accused of fraud and market manipulation in the U.S., although he denies all allegations.
Other Investment Activities of World Liberty Financial
In addition to swapping cbBTC for WBTC, World Liberty Financial has also been actively trading in the market over the past week, acquiring large amounts of tokens such as $AAVE , $LINK and ENA. These are all projects that have partnerships or integrations with this platform.
The Role of BiT Global and WBTC
BiT Global, a strategic partner of BitGo and Justin Sun, is one of three entities overseeing WBTC globally. While BitGo was previously the sole custodian, as of August 2024, the management of WBTC has been distributed to three entities, including BiT Global, to enhance decentralization.
Although Sun is not directly involved in BiT Global, some board members believe his involvement is a 'positive signal' for WBTC, thanks to the success of the Tron ecosystem, HTX exchange, and his other businesses.
Conclusion
With backing from the Trump family and advice from Justin Sun, World Liberty Financial is reshaping its crypto investment strategy. The swap of cbBTC for WBTC is not just a technical move but also reflects a long-term vision for building a sustainable and integrated financial ecosystem.