World Liberty's ETH Loss: $125M Downward Spiral?
World Liberty's Significant ETH Sale
A wallet potentially linked to World Liberty Financial, a DeFi project with Trump family endorsements, recently sold 5,471 ETH. According to a report by Lookonchain, this sale, at an average price of approximately $1,465 per coin, generated around $8 million.
Heavy Losses for World Liberty
This sale represents a substantial loss for World Liberty. Their initial ETH investment of 67,498 ETH, purchased at an average price of $3,259 per token, cost roughly $210 million. Given the current ETH price of approximately $1,400, World Liberty's total losses are estimated at around $125 million.
Market Downturn Exacerbates Losses
The decline in ETH's value since Eric Trump, the project's web3 ambassador, publicly expressed bullish sentiment, has significantly impacted World Liberty's holdings. ETH's price has fallen by over 40% since that time. This downturn is part of a broader crypto market correction, with Bitcoin down over 20% since early February, and XRP and Cardano each experiencing drops of around 30%. Solana and Dogecoin have been particularly hard hit, losing nearly 50% and 47% respectively. TRON and Binance Coin have demonstrated more resilience.
World Liberty's Response
World Liberty has addressed concerns regarding the ETH sale, stating that these movements are part of routine treasury management, expense payments, and working capital adjustments. They explicitly deny unauthorized token sales or swaps.
We’re making routine movements of our crypto holdings as part of regular treasury management, and payment of fees and expenses and to address working capital requirements. To be clear, we are not selling tokens—we are simply reallocating assets for ordinary business purposes.
- WLFI (@worldlibertyfi) February 3, 2025
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