World Liberty Financial, a decentralized finance (DeFi) project backed by the Donald Trump family, has recently garnered attention for selling off its ether (ETH) holdings at a significant loss. According to reports, the organization sold its ETH stash at $1,465 per token, despite having acquired the cryptocurrency for $3,259 earlier this year.
On-chain data from Arkham reveals that a wallet closely associated with World Liberty Financial disposed of 5,471 ETH, amounting to approximately $8 million on Wednesday. This transaction has resulted in an astonishing $125 million loss.
This sell-off comes just two months after Eric Trump expressed optimism about investing in ETH when it was trading at $2,880, calling it a great time to buy. The irony of the timing has not gone unnoticed in the crypto community.
Despite the recent sell-off, the principal wallet linked to World Liberty Financial holds an impressive $98 million in various cryptocurrencies, with $11.7 million still invested in ether. This indicates that the organization may still possess significant resources to navigate the volatile market.
Adding to the intrigue, Donald Trump himself took to Truth Social on Wednesday to declare that it is a “great time to buy,” coinciding with a downturn in global markets sparked by escalating risks of a trade war.
Since Trump took office on January 20, the financial landscape has shifted dramatically, with the Nasdaq index dropping by 20%, the S&P 500 falling by 17%, and Bitcoin decreasing by 24%. Meanwhile, memecoins like TRUMP and MELANIA have performed even worse, shedding 83% and 95% of their value, respectively, since that date.
As of now, World Liberty Financial has not responded to inquiries from CoinDesk regarding this significant market move. The implications of these transactions within the context of the broader cryptocurrency landscape are yet to be fully understood, but they certainly raise questions about the investment strategies employed by high-profile entities.
