Trump-backed crypto venture locks founders' tokens as investors face volatility and early gains
The Trump family’s wealth swelled by as much as US$6bn on paper after their cryptocurrency, WLFI, began trading publicly, according to the Wall Street Journal.
Within its first hour on the market, CoinMarketCap reported that US$1bn worth of WLFI tokens changed hands, signalling immediate investor demand.
The token’s debut resembled an initial public offering, creating a real-world valuation for the family’s nearly quarter stake in WLFI.
At its peak of 40 cents, that holding was valued at more than US$6bn, though by Tuesday the price fell to 21 cents before recovering to 23 cents, CBS News reported.
Even after the drop, the stake remained worth around US$5bn.
World Liberty Financial, the venture behind WLFI, said founders’ tokens are “locked,” leaving the family unable to sell.
Early investors, who purchased WLFI last year at 1.5 cents per token, may initially sell only 20 percent of their holdings. That early valuation shift still offered substantial returns.
Reuters calculations, based on company terms and disclosed deals, estimated the Trumps have already made US$500m since launching World Liberty last year.
The Guardian reported that ownership of roughly one-quarter of WLFI added about US$5bn in paper value to the family fortune.
WLFI quickly became one of the largest tokens in circulation, reaching a market capitalization just under US$7bn, according to CoinGecko.
The cryptocurrency is now listed on Binance, OKX, and Bybit.
Trump is named a “co-founder emeritus,” while his sons Donald Jr., Eric, and Barron are listed as co-founders.
Zach Witkoff, son of Trump envoy Steve Witkoff, is the venture’s chief executive. World Liberty also issued USD1, a stablecoin tied to the US dollar, and plans to roll out a mobile app.
Governance rights rather than profit claims define WLFI.
Tad Tobar, chief operating officer of Lorenzo Protocol, a World Liberty partner, said, “Its staying power is real because it’s designed to be the governance token of this new open economy.”
Donald Trump Jr. emphasized on social media, “This isn’t some meme coin.”
The venture follows other Trump-linked assets.
A Trump-owned trust holds more than half of Trump Media, valued at about US$2.5bn, which also invests in cryptocurrencies. Trump-related entities control around 80 percent of the $Trump memecoin, which surged earlier this year before collapsing.
Trump has positioned himself as a crypto advocate.
While campaigning, he described WLFI as a way to make “America Great Again, this time with crypto.”
In July, he signed the GENIUS Act, the first major federal legislation regulating cryptocurrencies, creating rules for stablecoins, as reported by CBS News.
These moves have raised concerns.
Critics told the Guardian that Trump’s promotion of crypto-friendly regulation while his family pursues private ventures represents potential conflicts of interest.
Watchdog groups and some lawmakers have voiced similar concerns about the $Trump memecoin, which once offered investors private dinners with Trump.
The White House rejected those claims.
Press secretary Karoline Leavitt said to CBS News, “Neither the president nor his family have ever engaged, or will ever engage, in conflicts of interest.”
Witkoff said last week that World Liberty is strictly private and not involved in politics, though he also described Trump as “the greatest president of all time.”
Despite the scale of the launch, cryptocurrencies remain volatile.
CBS News noted WLFI’s early 48 percent price swing is typical of new tokens, with hype often followed by sell-offs.
Advisors have also pointed out that even small sell-offs can drive steep price declines, a reminder that the Trump family’s paper wealth could fluctuate dramatically.
