Trump Family Cuts WLFI Stake to 40% Amid Private Sales
The Trump family’s crypto arm, DT Marks DEFI LLC, has reduced its stake in World Liberty Financial (WLFI) from an initial 70% to about 40% through a series of private placements and early token sales. Launched in September 2024, WLFI raised $590 million by issuing 25 billion WLFI tokens and expanded into USD1 stablecoin and crypto-backed loans. Early sales of over $200 million in WLFI tokens before President Trump’s inauguration cut the holding to 60%, while a quiet website update this month confirms a further drop to 40%. Tron founder Justin Sun invested $75 million in January, and U.S. lawmakers have flagged potential conflicts of interest. Despite a brief 5% stock dip, WLFI maintains a growth outlook for its digital-asset lending services. Analysts view the stake reduction as portfolio diversification rather than a lack of confidence in WLFI’s DeFi venture.
Neutral
The reduction of the Trump family’s WLFI stake via private placements and token sales is viewed as a diversification strategy rather than a sell-off driven by poor performance. While WLFI’s stock briefly dipped, the company’s expansion into crypto-backed loans and the USD1 stablecoin, along with continued backing from Justin Sun, supports stable demand. Traders can expect limited immediate price volatility in WLFI tokens, as the move signals strategic reallocation not diminishing confidence in WLFI’s DeFi operations.