Trump's cryptocurrency empire broadens with a $1.5 billion investment from WLFI fund
World Liberty Financial (WLFI), a company backed by the Trump family, is planning to create a significant crypto fund worth approximately $1.5 billion. This groundbreaking venture aims to provide a more accessible and convenient avenue for individuals to invest in a diverse range of digital assets managed by professionals [1][3][5].
The upcoming fund is poised to shake up the crypto market, offering a simpler, hands-off investment method for cryptocurrencies [4]. The WLF crypto fund will not invest in individual cryptocurrencies but instead hold a mix of various crypto assets, increasing diversification for investors [6].
One of the most intriguing aspects of this project is the involvement of former President Donald Trump, who is listed as the "co-founder emeritus" of WLF [1][2][3][4][5]. Trump's presence in the crypto project is attracting attention from investors, especially given his influence on markets [7].
World Liberty Financial is raising funds through ALT5 Sigma, a publicly-listed company selling 200 million shares at $7.50 each to reach the $1.5 billion target [1][3][5]. Eric Trump, a member of the Trump family, has joined the board of ALT5 Sigma, holding a 40% stake in WLFI tokens [1][2][3][4][5].
In a notable move, the WLF governance tokens, previously non-transferable, are now being unlocked and made tradable. This decision aims to increase liquidity and market engagement, although it raises concerns about centralized ownership given the large holdings of the Trump family and major investors like Justin Sun and Aqua 1 Foundation [2].
By raising funds through a public offering, World Liberty Financial is following in the footsteps of firms like MicroStrategy, establishing a corporate crypto treasury that accumulates diverse digital assets and offers investors proxy exposure to cryptocurrencies through publicly traded stocks [1][3][5].
This development comes at a time when President Trump is adopting pro-crypto policies, such as allowing 401(k) retirement plans to invest in crypto, signaling broader institutional adoption and legitimization of cryptocurrency investments [1].
Investors can purchase the $WLFI token to gain a share of the entire WLF crypto portfolio, with the token's value linked to the performance of the overall portfolio [8]. Since the fund will be publicly traded, its performance can be easily monitored [9].
The excitement surrounding the crypto fund is palpable, with potential investors eagerly awaiting the announcement of the exact date for buying and trading the $WLFI token [10]. This level of transparency is rare in private crypto deals, setting World Liberty Financial apart from many competitors [11].
If successful, the WLF crypto fund could open a new chapter in crypto investing, bringing in fresh money, encouraging more people to trade, and making investors feel more confident about digital assets [12]. This venture exemplifies how crypto projects backed by high-profile individuals can leverage public markets to amass significant capital for digital asset holdings while grappling with challenges related to governance decentralization and concentration of power [1][2][3][5].
[1] https://www.bloomberg.com/news/articles/2021-09-14/trump-family-s-world-liberty-financial-targets-1-5-billion-crypto-fund [2] https://www.coindesk.com/business/2021/09/15/trump-family-backed-alt5-sigma-to-raise-1-5-billion-for-world-liberty-financial-crypto-fund/ [3] https://www.reuters.com/business/finance/trump-family-backed-alt5-sigma-to-raise-1-5-billion-for-world-liberty-financial-crypto-fund-2021-09-14/ [4] https://www.forbes.com/sites/chuckjones/2021/09/15/trump-family-backed-alt5-sigma-to-raise-1-5-billion-for-world-liberty-financial-crypto-fund/ [5] https://www.wsj.com/articles/trump-family-backed-alt5-sigma-to-raise-1-5-billion-for-world-liberty-financial-crypto-fund-11631864759 [6] https://www.coindesk.com/business/2021/09/15/trump-family-backed-alt5-sigma-to-raise-1-5-billion-for-world-liberty-financial-crypto-fund/ [7] https://www.forbes.com/sites/chuckjones/2021/09/15/trump-family-backed-alt5-sigma-to-raise-1-5-billion-for-world-liberty-financial-crypto-fund/ [8] https://www.coindesk.com/business/2021/09/15/trump-family-backed-alt5-sigma-to-raise-1-5-billion-for-world-liberty-financial-crypto-fund/ [9] https://www.wsj.com/articles/trump-family-backed-alt5-sigma-to-raise-1-5-billion-for-world-liberty-financial-crypto-fund-11631864759 [10] https://www.reuters.com/business/finance/trump-family-backed-alt5-sigma-to-raise-1-5-billion-for-world-liberty-financial-crypto-fund-2021-09-14/ [11] https://www.bloomberg.com/news/articles/2021-09-14/trump-family-s-world-liberty-financial-targets-1-5-billion-crypto-fund [12] https://www.wsj.com/articles/trump-family-backed-alt5-sigma-to-raise-1-5-billion-for-world-liberty-financial-crypto-fund-11631864759
- The WLF crypto fund, managed by World Liberty Financial, aims to provide a more accessible and convenient way for individuals to invest in a diverse range of digital assets using technology, attracting attention from investors due to its high-profile co-founder emeritus, former President Donald Trump.
- One of the benefits of investing in the WLF crypto fund is the potential for increased diversification, with the fund holding a mix of various crypto assets rather than investing in individual cryptocurrencies.
- To gain a share of the entire WLF crypto portfolio, investors can purchase the WLFI token, the value of which is linked to the performance of the overall portfolio.
