Crypto Crash: Here’s What Trump’s World Liberty Financial Lost

The Trump family-backed DeFi project World Liberty Financial (WLFI) lost nearly $51million from its portfolio today, due to the crypto market collapse driven by President Trump’s tariff on several countries. 

World Liberty Financial’s (WLFI) investment strategy has concentrated significantly on Ethereum. Data from Arkham shows that ETH exposure comprises a major portion of its digital asset holdings. So, even a relatively moderate drop in ETH price can have a pronounced effect.

For instance, a 15% decline in ETH today would, by itself, account for roughly $37–$40m in losses from that portion alone. When combined with additional declines in related assets (such as wrapped Bitcoin and Ethena tokens, which have also experienced significant downturns in other recent reports), it is understandable that WLFI’s total loss has surpassed the $50m mark.

Which crypto does Trump’s World Liberty Financial own?

Data from Arkham indicate that World Liberty Financial’s portfolio had grown to roughly $388–$393m in digital assets throughout January. This valuation reflects a series of high‐value purchases made since its inauguration day and further acquisitions during the past few weeks.

On the day of President Trump’s inauguration, WLFI made a series of strategic acquisitions:

• $47million in ETH
• $47million in wrapped Bitcoin
• $4.7million in each of AAVE, Chainlink, TRX, and Ethena.

These early transactions laid the foundation for the portfolio’s diversity and growth. However, after today’s market crash, the current portfolio value stands at roughly $354.6m.

WLFI’s major crypto holdings

Ether (ETH) and Staked ETH (stETH)

On 31 January, World Liberty Financial completed an additional $10m ETH purchase. According to Cointelegraph, this transaction raised its ETH holdings to approximately 66,899 ETH, which was valued at about $225m at that time. Today, that value has slumped to $175m (as of 3 February).

Wrapped Bitcoin (wBTC)

On its inauguration day, the firm purchased $47m worth of wrapped Bitcoin. This purchase represents a significant bet on Bitcoin’s network interoperability with the Ethereum ecosystem and further diversifies its digital asset exposure

Altcoins and other digital assets

• Aave (AAVE): An initial acquisition on inauguration day included $4.7m in AAVE tokens. After today’s market crash, the value of WLFI’s AAVE stands at around $4.4m.
• Chainlink (LINK): The firm also bought $4.7m worth of Chainlink, aligning with its broader strategy to hold key DeFi and oracle assets.
• Tron (TRX): World Liberty Financial’s TRX exposure comes from multiple transactions — a $4.7m purchase on inauguration day supplemented by an additional $2.65m later, totaling roughly $7.35m in TRX. Justin sun, Tron’s founder, also invested additional TRX tokens to the platform. As of 3 February, the overall TRX holdings of WLFI stands at $8.8m.
• Ethena (ENA): An equal amount of $3.3m was used to acquire Ethena tokens.
• MOVE tokens: Most recently, the project added approximately $1.4m in MOVE tokens. This purchase not only diversified the portfolio further but also came at a time when MOVE experienced strong upward momentum

WLFI’s portfolio shows major concerns

Although the project’s crypto portfolio is diverse and includes several assets, its proportion suggests WLFI is highly vulnerable to market volatility.

• Diversification: WLFI’s significant exposure to a single asset class (in this case, ETH) magnifies the portfolio’s risk during periods of heightened volatility. More diversified holdings or hedging strategies could mitigate such concentrated losses.
• Hedging and tactical adjustments: In volatile markets, active management — such as using derivative instruments or shifting allocations — may help cushion against abrupt declines. If WLFI had incorporated more dynamic hedging strategies, some of the losses might have been offset.
• Long-term versus short-term outlook: While a 15% drop in ETH today is painful in the short term, the long-term prospects for Ethereum remain a subject of debate among analysts. WLFI’s ability to recover from this loss will depend on whether ETH can rebound as market conditions improve and if broader institutional sentiment shifts back to a more bullish outlook.

To sum it up

In summary, WLFI’s $50m-plus loss is primarily attributable to its heavy reliance on Ethereum. With ETH falling by 15% today amid a volatile, macroeconomically uncertain environment — aggravated by new tariff policies and market-wide liquidations — the impact on WLFI’s portfolio is substantial. This situation highlights the risks of concentration in a single asset and emphasizes the importance of diversification and active risk management in highly volatile markets.