Original title: (What assets might the Trump family project WLFI buy next?)
Original 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, claiming to be a DeFi platform characterized by its reliance on connections to the Trump family and slogans with strong personal Trump attributes such as 'Be Defiant'. On the WLFI official website, Trump is listed as the 'Chief Crypto Advocate', and his sons Donald Trump Jr., Eric Trump, and Barron Trump hold the title of 'Ambassador'.
WLFI's website. Source: WLFI official website
It is important to note that on the official website, the WLFI project legally avoids any connection to the Trump family. The project claims to be 'the only DeFi platform inspired by Trump', and the titles of advocates and ambassadors cannot be considered real positions in management. Furthermore, there is a small print at the bottom of the website:
Donald J. Trump, any family member, or any director, officer, or employee of the Trump Organization, DT Marks DEFI LLC or their respective affiliates are not officers, directors, founders, or employees of World Liberty Financial (WLFI) or its affiliates. The ownership, management, or operational rights of World Liberty Financial, Inc., its affiliates, or the World Liberty Financial platform do not belong to Trump, any family member, the Trump Organization, DT Marks DEFI LLC, or their respective directors, officers, employees, affiliates, or key persons.
$WLFI tokens and the use and sale of the World Liberty Financial platform are solely provided by World Liberty Financial or its affiliates. DT Marks DEFI, LLC and its affiliates (including Donald J. Trump) have received or may receive approximately 2.25 billion tokens from World Liberty Financial and are entitled to receive 75% of the net agreement revenue according to a service agreement. The definition of this agreement revenue includes income from any source, less agreed reserves, fees, and other amounts, the specific amount of which cannot yet be determined.
World Liberty Financial and its $WLFI token are not political in nature and are not part of any political campaign.
Overall, the project team is clearly telling everyone: 'We have ties with the Trump family, but in reality, there is no legal connection.' It sounds somewhat irresponsible.
It's no wonder that hardly anyone is buying WLFI tokens: currently, the project’s official website shows that out of a total of 20 billion tokens, only a quarter of the sales target has been completed since its launch, even in such a bullish market context.
The token sales target has only reached 5 billion. Source: WLFI official website
However, this does not prevent the assets purchased by this project from becoming a certain degree of market trend; 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 matters. In the latter, Trump's appeal as a crypto advocate is unprecedented.
Large-scale purchases of crypto assets
Odaily previously reported that, according to Spot On Chain monitoring, since November 2023, WLFI has aggressively purchased various mainstream and emerging crypto assets through a major wallet address.
The purchased assets include:
· ETH: Total amount $30 million, purchased 8,105 ETH at an average purchase price of $3,701 each;
· cbBTC: Total amount $10 million, purchased 102.9 cbBTC at an average purchase price of $97,181 each; (later changed to WBTC)
· LINK: Total amount $2 million, purchased 78,387 LINK at an average purchase price of $25.51 each;
· AAVE: Total amount $1.91 million, purchased 5,886 AAVE at an average purchase price of $324.4 each;
· ENA: Total amount $750,000, purchased 741,687 ENA at an average purchase price of $1.011 each;
· ONDO: Total amount $250,000, purchased 134,216 ONDO at an average purchase price of $1.86 each
Odaily subsequently reported that World Liberty Financial announced a collaboration with Ethena Labs, and both parties are seeking a long-term partnership, starting with Ethena's revenue token sUSDe.
It can be seen that even after experiencing several pullbacks following a breakthrough of over 100,000 and a massive drop influenced by hawkish Fed rate-cut news, by December 19, the six tokens purchased by WLFI still maintained their gains within a 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 purchased targets indeed became a trend during the market upturn, allowing them to maintain their 30-day gains amidst significant pullbacks.
So, what tokens might WLFI consider purchasing next?
What is WLFI's potential next asset purchase?
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 WLFI's advisors (other advisors and team member information can be found in this article: Who are the decision makers behind Trump's WLFI project that is aggressively purchasing crypto assets?). There is a considerable possibility that the purchased tokens will come from Polychain's portfolio. According to Rootdata, we can see that not every project in Polychain's portfolio has issued tokens, and even fewer can be considered established DeFi projects.
Top 100 DeFi assets by market cap on Coingecko
At the same time, the assets previously purchased by WLFI were all within the top 100 list by market cap on Coingecko, likely due to considerations of volatility and drawdown. Moreover, regarding the collaboration between WLFI and Ethena, the token purchases are likely accompanied by subsequent collaboration considerations; using the heat and influence of the purchases to collaborate with larger DeFi projects in the market, thereby reinforcing WLFI's brand value as a DeFi protocol.
COWSwap listed assets (minimal impact)
The decentralized trading platform used by WLFI is CowSwap, which is one of the more popular DEXs today, and its products also include AMM, etc. On the CowSwap interface, it can be found that there are 374 assets that have been officially verified by CowSwap without the need to manually input contracts, provided the network choice is Ethereum. This can be considered the largest range from which to choose. CowSwap does not support many networks; apart from Ethereum, it only supports Gnosis, Base, Arbitrum One, and the Sepolia testnet. WLFI's other purchases are also likely to occur on CowSwap, so the possibility for DeFi projects on Solana may be relatively smaller. Of course, this factor has a relatively small impact; WLFI can completely purchase, manually buy, or OTC buy assets from other projects through other platforms that support Solana.
So, considering these factors, what tokens can be identified?
Also Polychain's investment projects/CowSwap listed assets/and Coingecko top 100 by market cap:
· Maker (MKR), recently rebranded as SKY
· Uniswap (UNI)
· DYDX (currently ranked 113th by market cap, not much difference)
At the same time, if we consider projects not in Polychain's portfolio but with high brand value, we can include the following four tokens: Lido, Pendle, Eigen, and Curve. These projects also have some 'American attributes', making collaboration possible. If we expand the market cap a bit further, then projects like 1inch and Morpho also have a smaller chance.
In summary, WLFI's investment strategy demonstrates a certain level of strategic thinking, showing strong capital operation capabilities. In the future, WLFI's purchase targets are likely to continue focusing on high-quality DeFi assets within the top 100 by market cap, and this significant pullback may also become the best window for purchasing. In the coming term of Trump's presidency, WLFI's buying actions may provide important signals for investment decisions.
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