The digital tokens backing the Trump family’s cryptocurrency venture, World Liberty Financial ($WLFI), fell in value on Monday during their first day of trading on major exchanges. After initially trading above $0.30, the price later dropped approximately 12% to $0.246, giving the token a total market capitalization of just under $7 billion and making it the 31st largest crypto token in circulation, according to data from CoinGecko.
The tokens became tradable after investors voted in July to approve their sale and purchase, a move that was expected to potentially boost the value of former President Donald Trump’s holdings. Early investors are permitted to sell up to 20% of their holdings. The tokens were initially sold as governance tokens, giving holders voting rights on business changes, with their primary draw being the connection to Trump and expectations of value appreciation due to his backing.
The venture has been highly lucrative for the Trump family. Since World Liberty’s launch last year, Reuters calculations based on the company’s terms, traced transactions, and public deals indicate the family has made approximately $500 million from the project. The token’s listing on major exchanges like Binance, OKX, and Bybit enables price discovery through speculation and earns those platforms trading fees, likely stoking interest from a broader range of crypto investors.
However, the project has faced significant criticism from Democratic lawmakers and government ethics experts. They argue that the Trump family’s deep foray into the cryptocurrency business, occurring simultaneously with the former president’s efforts to reshape the regulatory framework governing digital currencies, represents a profound conflict of interest.
