The Trump family has reportedly shifted its focus from real estate to cryptocurrency with a new venture, World Liberty Financial (WLF), and its associated governance token, WLFI. This move has drawn significant attention due to a recent $750 million transaction that has raised concerns among former regulators and market observers.
According to a report by the Wall Street Journal, World Liberty Financial acquired the payments firm Alt5 Sigma. Following this acquisition, Alt5 Sigma raised $750 million from outside investors and used that capital to buy WLFI tokens directly from World Liberty Financial. This "circular transaction," which is rare in traditional finance but common in crypto, could result in a $500 million payout for the Trump family, as an entity they control receives up to 75% of the revenue from token sales.
Despite concerns about a potential conflict of interest and a lack of transparency, legal experts believe the deal likely complies with U.S. securities laws, provided all disclosures are complete. The timing of this venture is notable, as it comes shortly after Alt5 Sigma raised $1.5 billion through a stock offering to fund its crypto strategy. The payments firm is also currently under an SEC investigation for potential fraud.
As WLFI prepares to begin trading on September 1, with an early valuation of around 30 cents per token, its market capitalization could potentially place it among the top 45 digital assets. Some investors are even speculating it could climb higher, attracting listings on major exchanges like Kraken, OKX, HTX, MEXC, Gate.io, and KuCoin.
On paper, the Trump family's WLFI holdings are estimated to be worth more than $6 billion, with Donald Trump himself holding approximately two-thirds of the tokens. However, the ability of insiders to sell their holdings is restricted, with only a small portion available at launch. This limited supply, or "low float," could make the token’s price volatile, a dynamic that has been seen with other Trump-themed tokens in the past. Critics argue that this arrangement, with its strong ties to politics and public markets, highlights the risks of insider-driven tokenomics.
September 2025, Cryptoniteuae