“Victory for the community! $WLFI tradability gets the green light,” the team posted on platform X. “Our target is a 6–8 week timeline for the full unveiling — strategic partnerships (alliances, grand platforms, intelligent unlocks) require time to achieve their maximum potential. Exciting developments are on the horizon for everyone…”

The team further justified the wait, stating, “We’re negotiating significant deals that could redefine $WLFI’s trajectory, gearing up for high-profile listings on major platforms, and devising equitable unlock schedules. This isn’t a pause — it’s the creation of a legend.”

The decision regarding World Liberty’s token governance was finalized on Wednesday, garnering an overwhelming 99.94% approval from the voting power after a week of voting. At present, WLFI tokens possess no economic rights over the protocol, which is anticipated to be a white label derivative of Aave and is still under construction.

The process of unlocking the tokens, which were initially non-transferable, will pave the way for speculation and price discovery. According to Thaddeus Pinakiewicz, a researcher at Galaxy, WLFI currently trades at around $0.16 in pre-market trading. At pre-market prices, WLFI has a fully diluted market cap of $16 billion. In comparison, Aave has a $5.1 billion diluted market cap.

World Liberty managed to raise roughly $550 million by selling approximately 25 billion tokens, accounting for a quarter of the total 100 billion supply. The remaining tokens will be subjected to a second community vote to determine the unlock and release schedule.

The team has also mentioned that the protocol founders, team, and advisor tokens “will adhere to a longer unlock schedule” and they intend to distribute “a portion” of the tokens to “early backers.” DT Marks DEFI LLC, a Trump-associated firm, is projected to receive 22.5 billion WLFI tokens, as per a disclosure statement in October.

Based on current prices, DT Marks’s WLFI allocation would amount to $3.6 billion. However, the firm only possessed 15.75 billion WLFI tokens at the end of the previous year, according to a public financial disclosure report released last month. The crypto ties of Trump have raised eyebrows among several lawmakers, including Sen. Elizabeth Warren.

In addition to the decentralized lending protocol, World Liberty also manages the USD1 stablecoin. The team has proposed airdropping USD1 tokens to “early” WLFI holders, although no official plans have been declared yet.

Disclaimer: The Block is a standalone media outlet delivering news, research, and data. Foresight Ventures, a major investor in The Block as of November 2023, also invests in other crypto firms. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to provide objective, impactful, and timely information about the crypto industry. This article is for informational purposes only and is not intended as legal, tax, investment, financial, or other advice.

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Arkham Intelligence, a blockchain analytics firm, reveals that the purchase was executed on April 12th, utilizing one of WLFI’s trading wallets. This wallet was funded with USDC transferred from the project’s primary wallet. It’s worth noting that this same wallet has been used by WLFI in the past for purchasing other altcoins.

In addition to Bitcoin (BTCUSD) and Ether (ETHUSD), WLFI’s diversified portfolio includes a vast number of altcoins, such as Tron (TRXUSD), Ondo Finance (ONDO), Avalanche (AVAXUSD), and now Sei (SEI).

Blockchain research company Lookonchain reports that WLFI has invested a total of $346.8 million in 11 different tokens. As of April 12, however, the project has yet to reap any profits from these investments. Specifically, the project’s Ethereum investments have depreciated by over $114 million. Overall, WLFI’s portfolio is down by $145.8 million.

In a tweet dated February 3, Eric Trump, son of Donald Trump, advocated for buying Ether. However, since his endorsement, the price of ETH has dropped by 55%, currently trading at $1,611, a significant decrease from its February 3 closing price of $2,879.

Interestingly, an icon for WLFI’s stablecoin, USD1, has surfaced on crypto exchanges like Coinbase and Binance, as well as on the crypto aggregator site CoinMarketCap. This development is perceived as an informal unveiling of the coin’s logo despite the absence of an official announcement from WLFI.

The Trump family’s involvement with USD1 has sparked controversy among US lawmakers. During a recent hearing on stablecoin legislation by the US House Financial Services Committee, both Democratic Representative Maxine Waters and Republican chair French Hill expressed their concerns over possible conflicts of interest.

The post Crypto Acquisition Spree: Trump-Backed World Liberty Financial Invests $775K in SEI Tokens appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

WLFI’s crypto journey began with the release of a memecoin just before President Donald Trump’s inauguration, its price surged dramatically and then plummeted, leading to accusations of a pump-and-dump scheme. Moreover, WLFI made notable crypto purchases prior to key crypto-related events or announcements that the president was involved in, such as their $20 million investment in various tokens in the lead up to the White House Crypto Summit on March 7.

The expansion of WLFI’s portfolio coupled with dwindling regulation in the crypto sector has raised eyebrows among legal scholars and observers, who are worried about possible conflicts of interest within the Trump administration.

On March 25, WLFI disclosed its intention to launch USD1, a stablecoin “100% backed by short-term US government treasuries, US dollar deposits, and other cash equivalents,” according to co-founder Zach Witkoff. He also highlighted the coin’s potential for secure cross-border transactions, just days after WLFI raised over $500 million through the sale of its $WLFI tokens.

However, USD1’s connection to Trump has led to fears about potential security risks, market manipulation, and violations of the emoluments clause of the US Constitution. This clause is designed to protect against undue influence over American leaders.

Andrew Rossow, a cyber and digital media attorney, stated to Cointelegraph that the stablecoin is a direct challenge to constitutional protections meant to prevent conflicts of interest. He also warned about the potential for undue foreign influence over US policy through investment in or use of the stablecoin, considering Trump and his family hold 60% of World Liberty’s equity interests.

Furthermore, Corey Frayer, who served under former President Joe Biden on crypto policy at the SEC, expressed concern over the project’s focus on cross-border payments, which could be a way for foreign entities to curry favor with Trump.

Several US policymakers have also expressed concerns over potential foreign influence, market instability, and possible manipulation of global markets due to Trump’s crypto ventures. Trump’s potential role in crafting stablecoin legislation while simultaneously participating in a stablecoin project has been labeled as a constitutional violation that could undermine regulatory integrity.

Despite these concerns, some industry insiders welcome the president’s involvement as a sign of mainstream acceptance for the industry. However, the need for multi-faceted action to uphold principles of fair governance and maintain US credibility in the global financial system has never been more vital.

The post Conflict of Interest Concerns Loom Over Trump’s USD1 Stablecoin Project appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The fund’s inception was announced on February 11, stating its objective to fortify these projects and augment their significance in the rapidly evolving financial ecosystem. The fund seeks to “amplify stability” by spreading the platform’s investments across a “range of tokenized assets.” This move aims to ensure a “robust financial system” and invest in “budding opportunities within the DeFi landscape.”

The news comes on the heels of rumors about the Trump family initiating a significant venture on Ethereum. Joseph Lubin, Ethereum’s co-founder, and Consensys’ founder speculated that the Trump administration might ultimately incorporate Ethereum technology into governmental operations, akin to its present use of internet protocols.

Trump’s WLFI is also seeking more partnerships with traditional finance (TradFi) institutions. The platform aims to offer these institutions blockchain transparency and innovative marketing opportunities through these partnerships. The WLFI is poised to release a detailed proposition for the Macro Strategy fund on its governance forum soon.

Meanwhile, Bitcoin continues to gain traction among institutions. The University of Austin is planning to raise a unique Bitcoin fund worth over $5 million as part of the institution’s $200 million endowment fund.

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