Trump family's encryption asset accounts wealth surged by nearly 5 billion dollars! WLFI faced a double blow from security vulnerabilities and Whale dumping after going public.

After the Trump family's associated crypto assets project World Liberty Financial (WLFI) logged in to multiple exchanges this Monday, the 22.5 billion WLFI Tokens they hold had a paper value that once reached 5.6 billion USD, increasing nearly 5 billion USD compared to before its listing. However, the project soon faced severe challenges: the Ethereum Pectra upgrade vulnerability (EIP-7702) led to some users' wallets being hacked, while early whale large investors significantly sold off, causing extreme price fluctuations. Although the Trump family and team's shares are still in a Lock-up Position and the value has not been realized, the total valuation of their crypto assets (including Trump-themed Meme coins and Bitcoin Holdings) has far exceeded that of the traditional real estate empire, causing significant conflicts of interest.

Trump Family WLFI Holdings Structure and Value Surge

According to information disclosed on the official website of World Liberty Financial (WLFI), the Trump family holds a total of 22.5 billion WLFI tokens, which accounts for 22.5% of the project's total supply of 100 billion. In addition, they also hold 38% of the parent company WLF Holdco LLC's equity and 75% of the net proceeds from the token's initial presale. The token's listing opening price was approximately $0.30, although the current price has fallen to $0.25 (according to Gate data), the theoretical account value of the Trump family's holdings remains as high as $5.6 billion. Compared to the last round of presale before listing at $0.05 (valued at about $1.1 billion at that time), their wealth on paper has achieved an astonishing increase of nearly $5 billion after the listing. The project raised $300 million through the initial presale from October 2024 to January 2025 (2 billion tokens at a unit price of $0.015) and then sold an additional 5 billion tokens at a unit price of $0.05 after the Trump-themed meme coin craze, raising another $250 million. Including the private placement round, WLFI's total financing reached $590 million, from which the Trump family profited $442.5 million.

WLFI Token Economics and Initial Circulation Status

At the launch of the project, the initial circulating supply was 24.67 billion WLFI (accounting for 24.67% of the total supply). Based on this, its circulating market value is approximately 6.8 billion USD, while the fully diluted valuation (FDV) reaches as high as 25 billion USD.

The initial circulating supply includes: 10 billion unlocked ecological funds allocated to World Liberty Financial, Inc; 7 billion allocated to Alt5 Sigma Corporation (planned to be held as a treasury strategy for nearly 8% of the total supply); and 2.8 billion for liquidity and the market. 20% of the shares for the initial public sale participants will be unlocked at the time of listing.

The remaining tokens are in a non-circulating state at the time of listing, including 19.96 billion treasury reserves, 33.51 billion team allocations (including the Trump family, subject to an undisclosed lock-up plan), 16 billion public sale lock-up portions, and 5.8 billion strategic partner shares, all of which must comply with ownership or lock-up conditions. This means that a large amount of holdings by the Trump family cannot currently be sold on the market, and their value is only unrealized gains; any future selling actions could have a huge impact on the WLFI price.

Protocol Operation and Potential Risks: Pectra Vulnerability and Whale Selling Pressure

World Liberty Financial protocol is primarily built on Ethereum and utilizes Aave V3 for lending operations, with its reserves audited and under custodial relationships. WLFI serves as a governance Token, used to vote on protocol parameters, incentive plans, and growth strategies. The project has also launched the USD stablecoin USD1, which currently ranks as the sixth largest stablecoin with a market capitalization of 2.6 billion dollars. However, the project faces severe challenges:

1. Security Vulnerability: The EIP-7702 vulnerability in the Ethereum Pectra upgrade was maliciously exploited, leading to some users experiencing theft of wallet funds when receiving WLFI airdrops. Reports indicate that around 100 wallets were compromised due to authorizing malicious sweeping contracts through phishing links. Although the token contract itself is secure and most allocation wallets are unaffected, this incident has severely damaged the project's reputation. The security agency SlowMist has been tracking the related attacks.
2. Market Selling Pressure: WLFI faced massive profit-taking from early investors and whales after its listing. The price plummeted from a high of $0.31 to currently $0.25. In the derivatives market (such as Hyperliquid), 12 out of 19 whale accounts have opened short positions, further increasing downward pressure on the price. Although the project team proposed using the liquidity fees held by the protocol for repurchasing and burning WLFI, they have not yet proposed a solution for freezing funds or reissuing tokens after the vulnerability incident.

Concerns Over the Scale of the Trump Family's Crypto Empire and Conflicts of Interest

The Trump family's crypto assets go far beyond WLFI. Related entities control 80% of the official Trump Meme coin TRUMP (theoretical book value of $6.7 billion); Trump Media & Technology Group (TMTG, valued at $4.9 billion, about half owned by the Trump Trust) is also one of the largest publicly traded companies with Bitcoin holdings, holding 15,000 BTC (worth about $1.6 billion) on its balance sheet. In total, despite being unrealized gains, the value of the crypto asset portfolio built by the Trump family in just seven months has far exceeded the $2.65 billion traditional real estate empire estimated by Forbes. This has earned them the title of "crypto president," but also raised significant questions about conflicts of interest, with critics concerned that policy decisions may be influenced by personal holdings of substantial crypto assets.

Conclusion

The successful listing of WLFI has pushed the Trump family to a new peak of crypto wealth, but the real challenges faced by the project — technical security vulnerabilities, large whale dumping pressure, and derivatives market speculation — reveal the high risks behind the high valuation. The large scale of the Trump family's crypto assets intertwined with policy influence has become the focus of attention from the market and regulators. While investors are concerned about the myth of paper wealth, they must also be vigilant about the unlocking selling pressure in token economics, smart contract security, and market manipulation risks. The subsequent responses from the project team and the Trump family's holding movements will continue to affect the value direction of WLFI.