Since Trump’s election victory and Bitcoin’s surge past the $100,000 mark, market attention has been focused on World Liberty Financial (WLFI), which has strong ties to his family. Since its launch in September 2023, WLFI has quickly garnered widespread market attention due to its unique narrative and large-scale capital operations. Notably, during December, WLFI made significant purchases of nearly $45 million in cryptocurrency assets, leading to much speculation in the market.
What tokens might WLFI continue to buy in the future?
It is important to note that on its official website, WLFI legally distances itself from any connection to the Trump family. The project claims to be “the only DeFi platform inspired by Trump,” and the roles of advocates and ambassadors cannot be considered genuine management positions. Furthermore, there is a small print at the bottom of the website stating: Overall, the project is openly telling everyone, “We have numerous connections to the Trump family, but legally, there is no connection.” This does not seem very responsible.
It is no wonder that almost no one is buying WLFI’s tokens: currently, the project’s official website shows that out of a total supply of 20 billion tokens, only a quarter of the sales target has been achieved since its launch, even in such a bullish market.
However, this does not prevent the assets purchased by the project from becoming a market trend to some extent; after all, “willing to invest in the Trump family” and “what assets has the Trump family invested in? Can I follow their lead?” are two completely different matters. In the latter case, Trump’s appeal as a cryptocurrency advocate is unprecedented.
Large-scale cryptocurrency purchases
Since November 2023, WLFI has made significant purchases of various mainstream and emerging cryptocurrency assets through a primary wallet address.
The assets purchased include:
– ETH: Total of $30 million, purchasing 8,105 ETH at an average price of $3,701 per coin;
– cbBTC: Total of $10 million, purchasing 102.9 cbBTC at an average price of $97,181 per coin; (later converted to WBTC)
– LINK: Total of $2 million, purchasing 78,387 LINK at an average price of $25.51 per coin;
– AAVE: Total of $1.91 million, purchasing 5,886 AAVE at an average price of $324.4 per coin;
– ENA: Total of $750,000, purchasing 741,687 ENA at an average price of $1.011 per coin;
– ONDO: Total of $250,000, purchasing 134,216 ONDO at an average price of $1.86 per coin.
Subsequently, World Liberty Financial announced a partnership with Ethena Labs, with both parties seeking long-term collaboration, starting with Ethena’s revenue token sUSDe.
It can be seen that even after several pullbacks following the breakthrough of $100,000 and the significant drop influenced by the Federal Reserve’s hawkish interest rate news, as of December 19, the six tokens purchased by WLFI still maintained an increase over their 30-day performance: Bitcoin and Ethereum increased by 10% and 15%, respectively, Chainlink by 65.1%, Aave by 103.9%, Ethena by 89.4%, and Ondo by 85.1%. This indicates that WLFI’s purchase targets have indeed become a market trend during the rise, allowing them to maintain a 30-day increase despite significant pullbacks.
What tokens might WLFI consider purchasing next?
Investment assets from Polychain
On the official website, it can be seen that Luke Pearson from Polychain has become one of WLFI’s advisors, suggesting a strong possibility that the purchased tokens will come from Polychain’s investment portfolio. According to Rootdata, not every project in Polychain’s portfolio has issued tokens, and there are even fewer that can be considered seasoned DeFi projects.
DeFi assets in the top 100 by market capitalization on Coingecko
Additionally, the assets previously purchased by WLFI are all listed within the top 100 by market capitalization on Coingecko, likely due to considerations of volatility and pullbacks. Furthermore, regarding WLFI’s collaboration with Ethena, its token purchases may also carry subsequent collaboration considerations; using the heat and influence of purchases to collaborate with larger DeFi projects in the market, thereby enhancing WLFI’s brand value as a DeFi protocol.
So, what tokens can be identified based on these considerations?
Simultaneously, from Polychain’s investment projects/CowSwap’s listed assets/and Coingecko’s top 100 by market capitalization:
– Maker (MKR), recently rebranded as SKY
– Uniswap (UNI)
– DYDX
Moreover, if we consider high-brand-value projects that are not in Polychain’s investment portfolio, we can include the following four tokens: Lido, Pendle, Eigen, and Curve. These projects also have some “American attributes,” making collaboration possible. If we expand the market capitalization further, then 1inch and Morpho also have a small possibility.
Overall, WLFI’s investment strategy demonstrates a certain level of strategic thinking and shows strong capital operation capabilities. In the future, WLFI’s purchase targets may continue to focus on high-quality DeFi assets within the top 100 by market capitalization, and this recent major pullback may also present the best buying window. During Trump’s upcoming term, WLFI’s purchasing actions may provide important signals for investment decisions.
In January, “King Trump” will take office, and this time he really is coming to be the emperor, with the Senate under his control, making it easier to push through matters in Congress. Powell has stated that the Federal Reserve does not have the authority to purchase Bitcoin and does not wish to seek legislative changes to promote this, but if Trump insists on pushing Congress to legislate, establishing a Bitcoin reserve in the U.S. is not impossible. Therefore, the negative news we see today may actually turn into positive news in the future.
Additionally, in January, there will be FTX compensation, with $16 billion in U.S. dollars or fiat currency compensation, which will likely flow back into the crypto space. Coupled with the resumption of U.S. ETFs, it is evident that the market in January is still worth looking forward to. Thus, this dip is likely to occur at the end of December or early January, and this timing is worth paying attention to for the funds that are looking to escape the peak.
