Despite an announcement from Eric Trump stating that World Liberty Financial (WLFI), a DeFi platform linked to the Trump family, would acquire a significant stake in the TRUMP memecoin, the anticipated "pump" in the coin's value has yet to materialize significantly. This move followed the shelving of a controversial Trump-branded crypto wallet project, adding another layer of complexity to the Trump family's involvement in the digital asset space.
Eric Trump announced WLFI's strategic partnership with the $TRUMP token on X, emphasizing the platform's commitment to "a brighter crypto future, patriotism, and the notion of long-term success." While the Trump-branded wallet will not move forward, WLFI's focus has shifted towards building and promoting the $TRUMP coin. This is not the first foray into digital assets for the Trump family, who launched an NFT collection in 2022.
WLFI's decision to acquire a substantial position in the TRUMP token aligns with its broader treasury strategy. The acquisition signifies a long-term interest in a cryptocurrency with ties to the Trump brand and represents the expanding cryptocurrency ecosystem associated with his family. However, the move comes after some controversy. The Trump family distanced themselves from a Trump-branded crypto wallet, leading to a cease and desist letter being sent to the companies involved.
The now-abandoned wallet had promised access to TRUMP trading alongside high-profile cryptocurrencies such as Bitcoin, Ethereum, and Solana. The Trump family stated that their brand was being used without permission, prompting WLFI to take legal action. The wallet effort was subsequently shelved, and WLFI characterized the TRUMP token and its own platform as "distinct projects with a common mission," aiming to maintain synergy while distancing itself from unapproved ventures.
World Liberty Financial is not new to the crypto scene. Founded in 2024, the company has strong ties to the Trump family. DT Marks DEFI LLC, an entity affiliated with Donald J. Trump and certain of his family members, owns approximately 60% of the equity interests in WLF Holdco LLC, which holds the only membership interest in World Liberty Financial, Inc. Eric Trump serves as one of the managers on the board of managers of WLF Holdco LLC.
The company also launched USD1, a dollar-pegged stablecoin backed by U.S. treasuries, dollars, and other cash equivalents. WLFI has begun distributing its own stablecoin, USD1, to wallet addresses tied to early WLFI token sales.
The acquisition of a significant stake in the TRUMP token aligns with the platform's treasury strategy. Eric Trump said the investment reflects a shared commitment to combining digital asset innovation with patriotic values. This move follows a gathering hosted by Trump, where over 200 top TRUMP holders were invited to one of his private golf clubs, an event that drew criticism from some lawmakers who accused the President of monetizing his political base through crypto.
Despite the optimism surrounding the announcement, the TRUMP memecoin has not experienced a significant price surge. This could be attributed to various factors, including market skepticism, the earlier controversy surrounding the Trump-branded wallet, or general volatility within the memecoin market.
