Trump-Linked Crypto Project Sends USD1 Stablecoins to WLFI Holders Without Formal Notice
A crypto wallet tied to World Liberty Financial, a digital asset project openly backed by US President Donald Trump, has quietly distributed 47 USD1 tokens to thousands of addresses holding the project’s WLFI token, according to blockchain analysts at Lookonchain and SlowMist.
Mass Airdrop to Early WLFI Buyers Raises Eyebrows
On-chain data from Etherscan shows that the distribution occurred late Tuesday evening, with 47 USD1 tokens sent in a bulk transaction to each wallet linked to WLFI holdings.
The recipients are believed to be early participants in the WLFI token sale, which drew more than 85,000 verified users through a know-your-customer (KYC) process in March.
While the project did not make a public announcement, the airdrop aligns with a previously floated proposal to reward WLFI holders with a small amount of USD1.
That community proposal was put to a snapshot vote last month and received near-unanimous support, with 99.96% voting in favour.
Why 47 USD1? Some Wallets Sent It Back Within Hours
Curiously, some wallets that received the tokens transferred them back just an hour later.
One receiving address consolidated funds totalling $5,875 in USD1, hinting at either coordinated activity or a possible test of transaction volume.
Other wallets retained the stablecoins, adding them to balances linked with prior meme token or DEX activity.
The equal distribution of 47 tokens per wallet, regardless of the WLFI holding size, suggests the airdrop may have been designed to maximise engagement rather than offer proportional rewards.
Stablecoin Issuance Dominated by BNB Chain, But Ethereum Gets a Boost
USD1 is primarily active on the BNB Smart Chain, where it accounts for over $2.13 billion in supply.
In contrast, Ethereum hosts just $34 million worth of USD1.
The latest airdrop appears to be a strategic move to strengthen USD1’s footprint on Ethereum, where the stablecoin’s liquidity remains limited and trading is still building traction.
Despite Ethereum's smaller role, the token has gained visibility through DEXs such as PancakeSwap, which remains the leading venue for USD1 trades.
Liquidity pools such as USDT/USD1 have over $16 million in available liquidity, with meme tokens like BUILDon (B) driving activity.
World Liberty Raised $550M But Now Holds Less Than a Third
World Liberty Financial reportedly raised $550 million during its token sales but now holds approximately $152 million in various digital assets.
The organisation has not clarified how the remaining funds have been used or allocated.
The WLFI token remains mostly symbolic for many small-scale buyers, often tied to support for Trump’s re-election campaign.
However, the project has also drawn in larger crypto investors, with a notable portion of USD1 now circulating across both major blockchains.
Centralisation Concerns and Political Ties Fuel Scrutiny
Transparency concerns remain around the structure of USD1.
Data from Dune Analytics shows two wallets control 84.4% of the stablecoin’s supply, with a third wallet holding 9.5%.
It’s unclear whether these addresses are owned by World Liberty, large investors such as Justin Sun, or third-party custodians like BitGo.
World Liberty’s ties to the Trump family have also attracted political attention.
President Trump and his three sons hold public-facing roles in the project.
Critics, including Senator Richard Blumenthal, have questioned whether the family profited significantly from WLFI.
In response, the project’s lawyers called the claim “fundamentally flawed.”
Stablecoin Growth Accelerates as US Pushes New Rules
USD1’s launch in March coincided with increased political momentum around regulating stablecoins.
US lawmakers are advancing the GENIUS Act, which seeks to impose clearer standards for reserve backing and disclosures by stablecoin issuers.
According to industry data, dollar-backed stablecoins now have a combined market cap exceeding $250 billion, fuelled in part by institutional demand.
In the meantime, World Liberty Financial appears to be extending its reach.
Beyond stablecoins, its ecosystem includes ambitions for a Bitcoin ETF through Truth Social and broader multi-chain integration—signalling a push to reshape how pro-political crypto ventures operate.
Kikyo
