In a notable development for Donald Trump’s crypto initiative, World Liberty Financial (WL), has reportedly exchanged approximately $10 million worth of wrapped Bitcoin (WBTC) for tokens associated with project adviser Justin Sun, founder of the TRON blockchain.
According to blockchain data analytics firm Nansen, a digital wallet linked to President-elect’s World Liberty Financial swapped its entire holding of 103 cbBTC tokens for WBTC on a Wednesday operation.
Wrapped Bitcoin serves as a bridge for Bitcoin (BTC) holders to engage in decentralized finance (DeFi) activities on the Ethereum (ETH) blockchain, enabling broader participation in the DeFi ecosystem.
Although World Liberty has been marketed as a decentralized finance lending platform, it has yet to become operational as it is still in early stages of development and presales of its WLF token.
Sun, a cryptocurrency entrepreneur known for his high-profile investments and attention-grabbing antics—including purchasing a banana duct-taped to a wall for $6.2 million—invested $30 million in World Liberty Financial in November, becoming an adviser to the project.
His involvement appears to have pushed World Liberty past a financial threshold that could allow Trump to profit from the enterprise, potentially securing at least $15 million for the Trump family based on terms outlined in World Liberty’s “gold paper.”
The recent token swap follows World Liberty’s earlier cryptocurrency acquisitions, including significant investments in Aave (AAVE) and Chainlink (LINK). Additionally, Nansen’s data indicates that the project’s wallets received around $250,000 in ONDO, a token from Ondo Finance, which specializes in tokenization.
The backdrop of these transactions is marked by controversy, particularly following a backlash triggered by a strategic partnership between Sun’s BiT Global and crypto custody firm BitGo, the operator of Wrapped Bitcoin.
This partnership prompted US-based crypto exchange Coinbase to seek a delisting of WBTC from its exchange due to concerns over Sun’s potential influence and control.
Earlier this month, BiT Global filed a lawsuit against Coinbase in response to the delisting, but a federal judge in California ruled in favor of Coinbase, denying BiT Global’s request for a temporary restraining order.
Despite the promotional efforts by Trump and his sons, World Liberty Financial has faced challenges in the market, with sales reportedly falling 93% short of projections. This lack of traction raises questions about the project’s viability and its ability to fulfill its ambitious promises of transforming the financial landscape.
At the time of writing, the total crypto market capitalization has fallen to the $3.3 trillion mark, after hitting an all-time high of $3.73 trillion on Tuesday, which also pushed the price of Bitcoin to a new record above $108,000.
Featured image from RFI, chart from TradingView.com
[#item_full_content]NewsBTCRead MoreNasdaq-listed Zoom Communications (ZM), a stock market high-flyer during the pandemic boom that's faced tougher…
USDT issuer Tether could face challenges if proposed U.S. stablecoin regulation is passed, and the…
This article is part of a four-piece series on El Salvador. You can find the…
Plasma, a crypto startup building a Bitcoin-based blockchain designed specifically for stablecoins, raised $20 million…
ARK Invest’s Cathie Wood is steadfast on her estimate that Bitcoin may rise to $1.5…
The January US CPI data is in, and it’s not what the market anticipated. Consumer…