World Liberty Financial (WLFI), the Trump-affiliated DeFi project, is back in headlines after selling a significant portion of its Ethereum holdings at a steep loss. The move comes amid broader market turbulence, even as the project secures fresh backing from crypto heavyweight DWF Labs.
ETH Sell-Off: $210M Bet Turns Sour
On April 9, blockchain tracker Lookonchain, citing Arkham Intelligence, reported that a wallet linked to WLFI sold 5,471 ETH for approximately $8.01 million—averaging just $1,465 per ETH. This is a massive markdown from the project’s initial purchases, where it acquired 67,498 ETH at an average of $3,259, totalling nearly $210 million.
At current market prices, WLFI faces an unrealised loss of roughly $125 million. The company has yet to issue a public statement regarding the transaction, but the move has raised eyebrows in both crypto and political circles.
Ethereum’s Slump Adds Pressure
The Ethereum market itself has been on shaky ground. ETH recently dropped below $1,500, marking a 56% year-to-date correction. This drop places the token below its realised price, a worrying indicator for long-term holders.
Market analysts link ETH’s decline to geopolitical tensions, particularly the Trump tariff dispute, which is fuelling uncertainty across global financial markets—including digital assets.
DWF Labs Backs WLFI with $25M Token Purchase
Despite the Ethereum setback, WLFI scored a major win as DWF Labs invested $25 million in 250 million WLFI tokens. This translates to a token valuation of $0.10, which is nearly 7x the original offering price of $0.015, and double the second-round price of $0.05.
The deal indicates strong institutional confidence, even as retail investors remain sidelined. DWF Labs is known for market-making in the Web3 space, and their involvement may help stabilise WLFI’s token economy in the near term.
USD1 Airdrop and Stablecoin Ambitions
WLFI’s native USD1 stablecoin also continues to gain traction. Recently, 1 million USD1 was transferred to DWF Labs for market-making purposes, highlighting WLFI’s push to integrate the asset into broader trading ecosystems.
WLFI has proposed an airdrop of USD1 to early token holders, aiming to test its distribution model and reward community participation ahead of a public rollout. The stablecoin is marketed as fully collateralised and pegged 1:1 to the US Dollar, offering a potential safe haven amid current volatility.
