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US President Donald Trump's newly formed cryptocurrency platform, World Liberty Financial (WLF), announced the launch of a strategic token reserve to fortify cryptocurrencies.
On social platform X, WLF announced that its new token reserve will allow it to participate in creative decentralized finance initiatives, create a well-capitalized reserve, and reduce market volatility.
Additionally, it announced plans to approach financial institutions to form strategic alliances so that the latter may add tokenized assets to the WLF reserve.
Dear WLFI Community,
— WLFI (@worldlibertyfi) February 11, 2025
We are thrilled to announce a transformative initiative that marks a significant milestone in our journey together. World Liberty Financial (WLFI) is proud to unveil the Macro Strategy, our strategic token reserve designed to bolster leading projects like…
The statement comes amid Trump and his family's growing interest in capitalizing on cryptocurrency.
Along with WLF, the Trump family has a controlling share in Trump Media & Technology Group, a streaming and social media company that declared last month that the firm was shifting its focus to crypto-related financial services.
The President's move to support the crypto sector and the monetization from investments has many critics calling it a self-serving obsession.
Still, the broader positive impact on the digital asset sector is clear.
WLF's strategic token reserve will support cryptocurrencies like Bitcoin, Ether, and others "that are at the forefront of reshaping global finance."
Just before Trump's inauguration, crypto investor Mike Dudas purchased over 140,000 tokens from WLF, reflecting the interest in the crypto firm backed by the President.
WLF tokens are unique among digital assets because they give holders a say in product and marketing decisions. Tokens like Bitcoin and Ether can be used to make payments or create apps.
Trump and his associates own 60% of WLF, which gives them the right to 75% of the revenues and 22.5 billion tokens.
The announcement follows the President's eldest son's unexpected presence at the New York City-based Ondo Summit, often known as Wall Street 2.0.
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There, Trump and the company's owners explained to the mostly traditional-minded audience that WLF's mission was to unite crypto with regular mom-and-pop investors and people like firefighters, dentists, and teachers who were interested in investing in the market.
In his remarks, Donald Trump Jr. stressed the importance of a regulatory environment enabling "crypto to flourish." He predicted that cryptocurrency would usher in the "future of American hegemony" and the "future of finance."
Experts in ethics and market participants are worried about possible conflicts of interest and Trump's possible influence over the administration due to his crypto initiatives, such as the $7.7 billion meme currency $TRUMP.
From steaks to condominiums to real estate courses—at venues like the now-defunct Trump University — Trump has long licensed out his name.
It would appear that Trump has not broken any laws, according to ethics experts.
The President and vice president are exempt from federal regulations that forbid executive branch members from participating in policy matters that might impact their financial interests.
According to his tweets on X, Justin Sun, the founder of the blockchain network Tron and a crypto entrepreneur of Chinese descent, has spent at least $75 million on the currency, making him the most renowned buyer thus far.
Given the allegations of Tron's use by militant groups and Trump's impending charges by US securities authorities, Sun's purchase into a business where Trump personally benefits financially has sparked questions regarding possible conflicts of interest and ethics.
Coinciding with Tron's purchases, World Liberty Financial has also acquired Tron tokens.
Arkham Intelligence, a cryptocurrency analytics firm, reveals that World Liberty Financial possesses 30 million TRX, valued at $7.43 million.
Although it is still a long way from its December high of 43 cents, the price of Tron has climbed 29% to $0.25 since Sun initially bought the WLF tokens on November 25. The following day, WLF announced that Sun was now an advisor for the company.
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The public ledger that supports cryptocurrency transactions, known as the blockchain, anonymously records the token sales.
Still, according to an analysis by several firms, Sun is the biggest outside investor in cryptocurrency.
In 2023, Sun was charged by the SEC with fraud involving cryptocurrency trading and concealing payments made to celebrities to endorse his businesses.
Case status: pending.
According to the Swiss entrepreneur, the claims brought by the SEC "lack merit."
With pro-crypto leadership at the SEC, many expect several cases to be withdrawn.
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