Trump-Backed World Liberty Financial Faces Heavy Losses Amid Market Turmoil
The latest tariff announcement from ex-President Donald Trump sent shockwaves through the cryptocurrency market and across various financial platforms.
World Liberty Financial—a fund focused on crypto that happens to be backed by Trump—was one of the most prominent casualties of this downturn, suffering a 21% decline on its $242.77 million investment made between January 19 and 31, according to the on-chain analytics platform SpotOnChain.
Portfolio Suffers Major Losses
The value erosion of the fund’s portfolio has been substantial, with some of its largest positions taking a severe beating. Among the largest losses:
Ethereum (ETH): Declined $36.7 million (-24.4%)
Wrapped Bitcoin (WBTC): Declined $8 million (-12.1%)
Ethena (ENA): Declined $2.05 million (-43.7%)
World Liberty Financial’s $242.77M crypto investment made between Jan 19 and 31 is now down over $51.7M (-21%) after Trump’s new tariffs rattled the markets!
Their top 3 biggest losses include:
• $ETH: -$36.7M (-24.4%)
• $WBTC: -$8M (-12.1%)
• $ENA: -$2.05M (-43.7%)Trump… https://t.co/5BxSnpAubl pic.twitter.com/7B45g73oLl
— Spot On Chain (@spotonchain) February 3, 2025
The sell-off in the market is broader and sharper than anything we’ve seen in recent months. It has undoubtedly been triggered by the new tariff policies. As our traditional markets have wobbled, our cryptocurrency investors have also taken a more cautious stance, leading to liquidations across the board.
World Liberty Financial has sustained losses on a number of auxiliary asset holdings beyond its main ones:
– Tron (TRX): 40.71 million TRX held at an average cost of $0.2415, giving rise to a floating loss of $1.43 million.
– Chainlink (LINK): 256,000 LINK held at an average cost of $25.35, producing a floating loss of $2.047 million.
– BlueMove (MOVE): 2.39 million MOVE held at an average cost of $0.7754, with a floating loss seemingly in sight of $518,000.
– Ondo (ONDO): 134,000 ONDO held at an average cost of $1.83, with an apparent floating loss of $100,000.
ETH 跌破 2500 美金，特朗普 World Liberty Financial 购入的一揽子代币已全线飘红，累计浮亏 6527 万美金😂$ETH : 58063.8 ETH，成本 $3341，浮亏 4942 万美金$WBTC : 646.71 WBTC，成本 $105183，浮亏 747.5 万美金$TRX : 4071 万枚 TRX，成本 $0.2415，浮亏 143 万美金$LINK : 25.6 万枚… https://t.co/kYQeY6zOp1 pic.twitter.com/5OWGoNb08f
— Ai 姨 (@ai_9684xtpa) February 3, 2025
The losses have stoked the fires of speculation over whether the fund will seek to double down on its investments in this downturn or take a more conservative stance.
Trump’s Stance on Market Turbulence
Although the market has reacted negatively to his tariff policy, Trump has kept to his guns. In a statement, he suggested that the economic “pain” his tariffs inflict is a necessary trade-off to achieve long-term goals. This implies he sees short-term market volatility as an acceptable cost for a long-term economically beneficial outcome that he just won’t define.
World Liberty Financial investors, however, are facing an altogether different reality—one that’s not nearly as euphoric. They are looking at a sharp downturn in the value of their assets. The fund’s next big move will determine whether it clings to the buy-and-hold notion and snags more assets while they’re undervalued or if it flips the script and manages risk in a way that aims to avoid any further significant loss of asset value.
What’s Next for World Liberty Financial?
As the cryptocurrency market finds itself at a crossroads, the decisions made by World Liberty Financial over the next few weeks could establish the investment strategy it will use going forward. The fund is faced with the choice of adding to its position at lower price levels or holding off for a while longer as it awaits more stable market conditions before making any big moves.
The wider net of Trump’s economic policies will also be important in determining how much the market likes him, or doesn’t. If he’s going to do what he says he’s going to do, and if those things are good for the economy, then the market will like him. If, however, he’s going to do things that create a lot of uncertainty—like impose tariffs or otherwise mess with trade—then the market may not like him as much.
At present, the cryptocurrency community will be observing intently to discern if World Liberty Financial interprets this downturn as a chance to pick up more assets at reduced prices or as an occasion to take stock of its strategic asset allocations and adjust them if necessary.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.
