World Liberty Financial (WLFI)—a crypto project tied to the Trump family—has reportedly begun selling off a portion of its Ethereum (ETH) holdings at a heavy loss. The move comes amid turbulent market conditions and rising scrutiny of WLFI’s financial strategy, even as it secures fresh investment from Web3 giant DWF Labs.
WLFI Offloads ETH at Steep Loss
On April 9, blockchain tracker Lookonchain, citing Arkham Intelligence, reported that a wallet linked to WLFI sold 5,471 ETH for $8.01 million, averaging $1,465 per coin. This is a drastic drop from WLFI’s earlier purchase price of $3,259 per ETH, totalling 67,498 ETH for $210 million.
With ETH currently trading below its realised price, WLFI is staring at an unrealised loss of around $125 million. The DeFi project has not yet made any public statement regarding the liquidation.
Ethereum’s Struggles Amplify Pressure
Ethereum’s dip below $1,500 comes as part of a 56% year-to-date correction, sparking widespread concern among investors. Analysts attribute the downturn partly to geopolitical uncertainties, including the ongoing Trump tariff dispute, which has rattled both traditional and crypto markets.
The timing of WLFI’s ETH sell-off has raised questions about the project’s financial resilience and strategy, especially with ETH underperforming and broader sentiment shifting bearish.
DWF Labs Backs WLFI with $25M Token Deal
In a surprising turn, WLFI received a $25 million investment from DWF Labs, a prominent Web3 market maker. Onchain data revealed that DWF acquired 250 million WLFI tokens, valuing each token at $0.10—almost 7x the original token price of $0.015 and double the second-round price of $0.05.
This show of confidence from DWF comes despite the ETH-related losses, suggesting belief in WLFI’s long-term DeFi vision. DWF Labs had also previously received 1 million USD1, WLFI’s in-house stablecoin, to support market-making efforts.
USD1 Stablecoin Gears Up for Wider Adoption
Launched as a fully collateralised dollar-pegged stablecoin, USD1 aims to offer a reliable value anchor within the WLFI ecosystem. To reward early supporters, WLFI has proposed an airdrop of USD1 to token holders, testing its distribution model ahead of the stablecoin’s full-scale launch.
Despite mounting financial and political scrutiny, WLFI continues to push forward with development, powered by its controversial branding and major backers. Whether this momentum can offset massive paper losses remains to be seen.
