According to a recent Bloomberg report, Donald Trump’s crypto initiative, World Liberty Financial (WLF), is making significant strides by acquiring three altcoins worth millions. This move comes amid growing speculation that the decentralized finance (DeFi) platform is on the brink of “becoming operational.”
Trump’s Crypto Venture Secures Major Token Purchases
Since December 11, World Liberty Financial has made notable purchases, acquiring 2,731 Ethereum (ETH), 4,043 Aave (AAVE), and 78,387 Chainlink (LINK) tokens, as revealed by blockchain data firm Nansen. These acquisitions total approximately $10.4 million in ETH, $1.4 million in AAVE, and $2.2 million in LINK.
The project was unveiled in September as a DeFi initiative, which aims to facilitate financial activities such as lending and trading without intermediaries. The Trump family, including President-elect Donald Trump and his sons have been actively promoting the venture across social media platforms and public engagements.
Initial fundraising efforts for the project faced challenges until controversial crypto entrepreneur and TRON blockchain founder Justin Sun stepped in with a $30 million investment in the decentralized finance platform.
Nicolai Søndergaard, a research analyst at Nansen, commented on the significance of these acquisitions, stating, “To me, it is a way to gain additional trust or a way to boost the project by shedding light on these assets as the project will likely do well if these assets do.”
This sentiment underscores the strategy behind the token purchases, which are seen as a means to enhance the project’s credibility in the competitive crypto market.
Key Partnerships With Aave And Chainlink
The acquired tokens have shown impressive price movements since the purchases were made. LINK has surged approximately 28%, reaching $28, while AAVE has increased about 17%, now valued at $52. Ethereum, the second-largest cryptocurrency by market capitalization after Bitcoin (BTC), has risen about 8%, trading at $3,912 during the same period.
In a significant development, AaveDAO, the decentralized autonomous organization (DAO) that governs the Aave project, recently approved a proposal from World Liberty Financial to leverage Aave’s protocols.
According to Bloomberg, this collaboration will enable World Liberty Financial to initially support crypto lending efforts and borrowing for Ether, wrapped Bitcoin, and stablecoins like USDC and USDT.
In exchange, AaveDAO will receive 20% of the fees generated by World Liberty Financial’s use of Aave’s services, along with 7% of the total supply of World Liberty’s WLFI tokens.
Additionally, World Liberty Financial announced plans to integrate Chainlink, a leading decentralized oracle network, for blockchain-based data services. This partnership aims to enhance the platform’s functionality and reliability, further solidifying its position in the DeFi ecosystem.
While trading at $3,912, ETH, the market’s leading altcoin, reports a 2.2% decline over the past week, failing to consolidate above the key $4,000 mark in an effort to challenge its all-time highs of $4,878 reached over three years ago.
Featured image from NBC, chart from TradingView.com