World Liberty Monetary Initiative (WLFI), a DeFi challenge backed by US President-elect Donald Trump, has made headlines with a latest $12 million crypto acquisition.
On Dec. 12, blockchain analytics agency Lookonchain revealed that WLFI acquired 2,631 ETH for $10 million at $3,801 per token. Moreover, it purchased 41,335 LINK and three,357 AAVE, investing $1 million in every.
In keeping with Arkham Intelligence knowledge, these purchases have boosted the challenge’s crypto holdings to a price exceeding $74.7 million. WLFI now holds roughly 14,576 ETH (value over $57 million), 102.9 cbBTC (valued at $10.3 million), and different belongings like USDC alongside its newly acquired LINK and AAVE.
WLFI’s substantial crypto buy seems to have influenced market situations. In keeping with CryptoSlate’s knowledge, each LINK and AAVE recorded worth will increase exceeding 25% inside 24 hours.
WLFI goals to place itself as a main DeFi platform that provides lending, borrowing, and digital asset funding providers. It additionally reportedly plans to introduce a proprietary stablecoin and instruments for accessing third-party DeFi functions.
Market implications
The crypto neighborhood has been buzzing with hypothesis about WLFI’s latest strikes. Some imagine the asset decisions align with a pro-crypto agenda anticipated below Trump’s administration.
A pseudonymous crypto dealer, Circulate Horse, urged that WLFI might have strategically invested in tokens anticipated to thrive below favorable US rules.
In the meantime, different business analysts additionally level to WLFI’s give attention to DeFi, viewing the LINK and AAVE purchases as a sign of confidence in decentralized monetary applied sciences over speculative belongings like memecoins.
Chainlink’s Group Liaison, Zach Rynes, highlighted that adopting Chainlink Value Feeds for WLFI’s Aave V3 integration might be a driving issue behind the acquisition. He additionally famous that the purchases would possibly mirror confidence in a extra supportive regulatory atmosphere below Trump’s management.
Trump’s evolving stance on crypto additional fuels this narrative. Over the previous 12 months, the President-elect strongly advocated for the business throughout his marketing campaign and has made a collection of pro-crypto appointments, together with that of David Sachs because the White Home Crypto Czar.
Observers stated these efforts exhibit a dedication to delivering on his regulatory readability and business assist guarantees.
