The Trump family’s latest venture into crypto raises eyebrows, with an alleged $750 million deal placing Trump-backed entities on both sides of a transaction.
Now, all eyes turn to the trading debut of WLFI, a governance token tied to World Liberty Financial, the family’s flagship crypto vehicle.
WLFI’s Launch Could Redefine the Trump Family Fortune
According to reports by the Wall Street Journal, World Liberty Financial (WLF) orchestrated a takeover of payments firm Alt5 Sigma.
Soon after, Alt5 raised $750 million from outside investors and used that capital to buy WLFI tokens directly from World Liberty.
The arrangement could hand the Trumps an estimated $500 million payday since an entity tied to the family controls up to three-quarters of revenues from token sales.
Such “circular transactions,” where the same group appears as both buyer and seller, are relatively common in crypto but rare in traditional finance (TradFi).
Former regulators warn they blur lines of transparency and risk conflicts of interest.
“This structure brings the worst practices of the crypto ecosystem into regulated public markets,” the TradFi media reported, citing Corey Frayer, a former senior SEC official.
Still, provided disclosures are complete, lawyers note the deal likely complies with US securities law.
The unusual structure reflects how crypto quickly became the Trump family’s dominant business interest. It has overshadowed the real estate empire Donald Trump built over five decades.
Meanwhile, this report comes barely a week after Alt5 Sigma raised $1.5 billion through stock offerings to fund its crypto treasury strategy focused on WLFI tokens.
The payments firm also faces an SEC investigation, focusing on potential fraud, including earnings inflation and stock manipulation.
Billions on Paper, But What Next?
The high-stakes maneuver comes as WLFI prepares to begin trading on September 1, coinciding with Labor Day, while US markets are closed.
Early market chatter values WLFI at around 30 cents a token, giving it a potential market cap that could rival that of the top 45 digital assets.
Some investors are betting it climbs higher, perhaps vaulting into the top 20, which could attract listings on more exchanges. Trading platforms already in the lineup to list WLFI include Kraken, the OKX exchange, Justin Sun’s HTX, MEXC, Gate.io, and KuCoin.
On paper, the Trump family’s WLFI holdings exceed $6 billion, with President Trump himself holding roughly two-thirds.
Beyond WLFI, Trump-linked entities also hold billions in other digital assets, including the TRUMP meme coin and stakes via Trump Media.
However, questions remain about whether the family can cash out. WLFI insiders are subject to strict trading limits, with only a small portion of tokens eligible for sale at launch.
Even modest selling pressure could destabilize the price, a dynamic already seen with Trump-themed tokens that spiked and then crashed earlier this year.
“With a low float, it’s easier to pump a price…It’s a good, explosive cocktail,” Bloomberg reported, citing Morten Christensen, founder of AirdropAlert.
Skeptics counter that the arrangement highlights the risks of insider-driven tokenomics, especially when intertwined with politics and public markets.
Will WLFI become a blockbuster or fizzle under scrutiny? The outcome notwithstanding, its debut is significant because a US president’s family is at the center of one of the most controversial token launches in crypto history.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
