The Trump family-backed decentralized finance (DeFi) project World Liberty Financial has dismissed false information, claiming it was undertaking a token swap deal with TRON and Movement Labs for their inclusion in the WLFI project.
WLFI Calls it a Normal Procedure
According to a statement on the WLFI social media X post, the firm stated that people must have misunderstood a routine asset reallocation exercise where they swapped at least $10 million worth of tokens against other blockchain asset tokens. World Liberty Financial routinely conducts the exercise as part of its treasury management strategy. The media post stated:
“We’re making routine movements of our crypto holdings as part of regular treasury management, and payment of fees and expenses and to address working capital requirements […] to be clear, we are not selling tokens — we are simply reallocating assets for ordinary business purposes.”
Media Reports Alleged Pursuing Several Projects
The statement from WLFI came shortly after a media report on Blockworks alleged the Trump-family-backed DeFi project was pursuing a token swap deal with several crypto projects. The report claimed World Liberty intended to sell at least $10 million worth of WLFI tokens in exchange for getting a similar amount of the other projects’ native cryptocurrency with a 10% fee in the offing. According to the World Liberty had reached out to projects whose tokens it already owns, including Ether (ETH), USD Coin (USDC), Chainlink (LINK), Aave (AAVE), Tron (TRX), and Uniswap (UNI), among others.
TRON, Movement Labs Deny Allegations
When contacted for comments on the alleged token swap deal with World Liberty Financial, several projects denied knowledge of any such deal or never received offers from WLFI. Tron Foundation, whose TRX remains the second largest holding in WLFI’s wallet per data from Arkham, denied the report. The company’s spokesperson stated:
“There is no token swap agreement.”
On the other hand, Movement Labs, also a participant in the World Liberty Financial project with a $2 million stake, refuted the rumors. Addressing a query from Coindesk, Movement Labs co-founder Rushi Manche denied sending any tokens to WLFI. He added:
“There weren’t any deals […] any back door deals. It was purely just market buying.”
WLFI Faced a Slothful Uptake of Token Sale
The token swap allegations surfaced days after World Liberty Financial completed a 20% sale of its 100 billion WLFI token supply and raised over $254 million. Following a slothful uptake of the token sale, the team scaled down its initial goal of raising $450 million. For example, on my weekend just before Trump’s inauguration, the project had only raised $91 million, which was a mere 35% of the amount eventually brought in.
World Liberty Financial holds at least $364 million worth of digital assets, with the lion’s share going to ETH, worth at least $176 million. The three most extensive crypto holdings include wrapped Bitcoin (WBTC), worth $62 million; staked ETH (StETH), worth $51 million; and USDC, worth $47 million.
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Conclusion
As World Liberty Financial and other projects mentioned in the alleged token swap deal reach out to refute the claims, it should be noted that WLFI has faced a barrage of criticisms. While billionaire investor once called the project an act of desperation from Trump that wasn’t “innovative or valuable,” his former White House spokesman Anthony Saramucci called it a “scammy grift that threatens to undermine” the legitimate cryptocurrency industry.
Frequently Asked Questions (FAQs)
What Is World Liberty Financial?
WLFI is a crypto project initially connected to US President Donald Trump. The DeFi project aims to create a financial system that offers financial accessibility and freedom using decentralized systems.
What are the project’s key features?
The project revolves around decentralized banding and aims to offer services similar to traditional baking but without involving intermediaries.
How has the project evolved so far?
WLFI evolved from an original project called “The Defiant Ones” to become World Liberty Financial following a strategic shift in branding. The aim is eventually to distance it from the Trump connection.
What is the future of the project?
The project is still in its initial stages, but it hopes to empower users globally to stop relying on traditional banks and control their finances.
References
Appendix Glossary of Key Terms
Token Swap: Exchanging one crypto token for another without converting it to government-issued currency.
Decentralized Finance: A financial system leveraging on blockchain technology to facilitate transactions without involving banks or traditional financial institutions.
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