Wealth of Trump Family Skyrockets by $5 Billion Following Cryptocurrency Offering on WLFI Platform

In the world of cryptocurrency, a new story is making waves, and it's surrounding World Liberty Financial's (WLFI) governance token.

Recent reports suggest that some traders have opened significant shorts on WLFI, potentially indicating a bearish outlook on the token's future. This move comes as DT Marks DEFI LLC, a Trump family entity, holds approximately 22.5 billion WLFI tokens, equating to around $5 billion in value. Donald Trump Jr. is one of the project's co-founders.

However, the origins of DT Marks DEFI LLC are shrouded in mystery, with no clear information available about when the entity was founded. This lack of transparency has raised eyebrows among some observers.

An analyst named StarPlatinum has pointed out that one family appears to be capturing the upside while everyone else takes on the market risk regarding WLFI. This sentiment is echoed by data from Arkham, which shows that several presale participants deposited their WLFI tokens to exchanges shortly after the token became tradable.

The uncertainty surrounding WLFI was further compounded by a significant unlock of 24.6 billion tokens on Monday. This event could potentially dilute the value of existing tokens and impact the market price.

Despite the analyst's speculation that the token might rise due to Trump's presidency, history shows that insiders often sell, which could be a cause for concern for potential investors.

In a bid to address these concerns, WLFI has proposed using 100% of fees earned in protocol-owned liquidity (POL) to buy back and burn tokens. This move could help reduce the supply and potentially stabilise the price.

However, it's not all doom and gloom for WLFI. Lookonchain has noted that one whale deposited $10 million in USDC on decentralized exchange Hyperliquid to short WLFI with 3x leverage. This move suggests that some traders are betting on a price drop, but it also presents an opportunity for others to profit from a potential rebound.

Indeed, one trader made a significant profit of $19.2 million by selling 60 million WLFI tokens on Binance.

It's important to note that approximately 56% of the WLFI token supply is held by founders, team, and Trump family entities. This high concentration of tokens in the hands of a few could be a potential risk factor for the token's price stability.

This story is an excerpt from the Unchained Daily newsletter, providing insight into the latest developments in the world of cryptocurrency. As always, it's crucial for investors to conduct their own due diligence before making any investment decisions.