This article does not constitute investment advice. The author holds no positions in any of the stocks referenced.
The Rise of Crypto in U.S. Governance
The emergence of cryptocurrency in the political landscape has reached a significant milestone, with many observers now acknowledging the first cryptocurrency presidency in the United States. Recent developments, including the launch of meme coins $TRUMP and $MELANIA and substantial investments in Bitcoin and Ethereum by World Liberty Financial—an entity connected to Donald Trump—underscore this shift. Notably, the formal staking of Ethereum by this organization coincided with Trump’s inauguration, marking a historical moment in the intersection of politics and decentralized finance (DeFi).
Understanding World Liberty Financial
For those unfamiliar, World Liberty Financial operates as a decentralized finance platform striving to democratize crypto-financial services. The platform provides users with the ability to either borrow against their cryptocurrency holdings or earn interest through lending options that utilize various DeFi protocols such as AAVE and LINK. In its own words, World Liberty Financial describes its connection to Donald Trump as follows:
DT Marks DEFI LLC, an entity affiliated with Donald J. Trump and certain of his family members, own approximately 60% of the equity interests in WLF Holdco LLC, which holds the only membership interest in World Liberty Financial, Inc.
The Financial Mechanics of $WLFI
The governance token for World Liberty Financial, $WLFI, is characterized by its non-transferable nature, making free trading challenging. Notably, Trump and his family are entitled to approximately 75% of the fees generated from $WLFI token transactions, signifying a substantial revenue stream for them.
Recent Purchasing Activity
In a remarkable turn of events, over the last three days, World Liberty Financial has acquired around 50,000 Ether, valued at approximately $160 million, and added $4.69 million in Bitcoin to its portfolio. Furthermore, the platform is reportedly exploring the acquisition of TRON’s TRX tokens to bolster its treasury.
Donald Trump is starting to stake his ETH
Let me say that again….
The President of the USA is staking ETH pic.twitter.com/jRPwpiuuwz
— eric.eth (@econoar) January 20, 2025
Staking and Its Implications
In what could be regarded as the pinnacle of World Liberty Financial’s recent crypto endeavors, the organization has begun staking its Ethereum holdings. This initiative means that Trump will now financially benefit from the validation of transactions on the Ethereum network, a significant step for both him and the DeFi space.
Market Performance of Meme Coins
On a different note, the $TRUMP meme coin has struggled to recover from the initial downturn following the launch of the $MELANIA coin, experiencing a 16% decrease in the past day. Despite this setback, the fully diluted market cap of $TRUMP still impressively stands at $36 billion, demonstrating the ongoing interest and investment in these digital assets.
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