World Liberty Financial Transfers Majority of ETH and WBTC Holdings
Major Asset Transfers Initiated
World Liberty Financial, a decentralized finance (DeFi) protocol endorsed by former U.S. President Donald Trump, has transferred the majority of its Ethereum (ETH) and wrapped Bitcoin (WBTC) holdings from its treasury. The protocol began the process with three test transactions of $12 each, followed by moving a substantial amount of ETH to a Coinbase Prime deposit address.
The WBTC holdings underwent multiple transfers, utilizing the decentralized exchange CoW Swap or intermediary addresses before reaching a Coinbase hot wallet, according to Arkham Intelligence data. Additionally, the protocol shifted tens of millions of dollars in staked ETH, which was its third-largest asset just hours before the transfers.
Uncertainty Surrounds the ETH Movement
The reasons behind the movement of ETH, which was previously the largest asset in the protocol's treasury, remain unclear. However, protocols often transfer ETH to exchanges as a precursor to selling. Meanwhile, the protocol has been receiving small amounts of ETH in numerous low-value transactions from addresses linked to exchanges such as Binance, KuCoin, and Upbit.
ETH Price Surge Amid Market Volatility
Despite recent market volatility, triggered by President Trump's tariffs on key trading partners, ETH has experienced a significant rebound, surging 50% and trading above $2,800. Eric Trump, the former President's son, posted on social media during the asset transfers, suggesting it was a favorable time to invest in ETH.
Substantial Reduction in Holdings
World Liberty Financial executed 13 transactions to offload its ETH, ranging from $95 million to $4 million in value, leaving only $82,000 worth of ETH in its holdings. The protocol's total cryptocurrency assets have plummeted over 90%, from $363 million to just above $33 million.
Previously, the project's ETH holdings alone were over $175 million, making it the dominant asset in its treasury. The protocol also moved its AAVE, ENA, and LINK holdings, worth approximately $30 million, to Coinbase using a similar transfer strategy involving numerous anonymous intermediary addresses.
TRX Holdings Remain Untouched
Notably, World Liberty Financial has not transferred its TRX holdings, which it acquired after a significant investment from Justin Sun, who also became an advisor to the project.
Recent Investment Activity
The protocol made a substantial purchase of various cryptocurrencies worth $112.8 million on Inauguration Day to commemorate Trump being named the 47th president. World Liberty Financial had completed a token fundraise of $254 million just before Trump took office and later increased its investment target.
Controversy Over Token Swaps
A recent report by Blockworks alleged that World Liberty Financial has proposed token swaps with other blockchain projects for a fee, a claim the team has refuted.
This article highlights the significant shifts in World Liberty Financial's asset management strategy and the broader implications for the DeFi and cryptocurrency markets.
What is Coinefficiency?
Coinefficiency is your go-to platform for optimizing cryptocurrency trading, investments and strategies. We provide a comprehensive suite of tools to analyze market trends, monitor price movements, and execute effective trading strategies. Whether you're a seasoned trader or new to crypto, Coinefficiency helps you maximize your profits with data-driven insights.
Why Use Coinefficiency?
- Advanced market analytics to identify trading opportunities.
- Compare markets relative performance.
- Understand market cycles over time. See market levels.
- Compare buy-and-hold, portfolio rebalancing, Dollar-Cost-Averaging trading strategies.
With Coinefficiency, you can stay ahead of the market and execute efficient trading strategies effortlessly.
Get Started with Coinefficiency
Ready to optimize your crypto investments? Take control of your portfolio with cutting-edge tools designed for both beginners and experts.