WLFI's first transaction made the Trump family a fortune

The Trump family's reported wealth increased by as much as $5 billion after its flagship cryptocurrency business began trading a new digital currency on Monday. The offering, similar to an initial public offering (IPO), allows the cryptocurrency, called WLFI, to be bought and sold on the open market like shares of a publicly traded company. Previously, those who purchased WLFI privately from Trump's company, World Liberty Financial, were unable to trade their tokens. This trading debut is likely the Trump family's biggest financial success since taking office. The Trump family, including Trump himself, holds nearly a quarter of all WLFI tokens in existence. Three of Trump's sons are co-founders of World Liberty Financial, and Trump himself has been named an honorary co-founder of the company. Last month, World Liberty Financial co-founders, including Eric Trump, rang the Nasdaq opening bell. World Liberty Financial said the tokens held by its founders and team members remain "locked up," meaning they are unable to sell them. But the launch of the exchange will give their holdings a true valuation, which was previously based on private placements. WLFI is likely the Trump family's most valuable asset, surpassing their decades-long real estate portfolio. While the Trump family has continued to pursue real estate deals around the world since taking office, its burgeoning cryptocurrency business has had the greatest impact. Trump helped launch World Liberty Financial during his campaign a year ago, saying it would help "Make America Great Again, this time with cryptocurrency." The rise of World Liberty Financial this year comes as Trump, in the White House, has promoted the development of the crypto industry, strengthened regulation, and touted the potential of private digital currencies to revitalize the U.S. economy. Prior to WLFI's listing, World Liberty Financial acquired a publicly traded company this summer and raised $750 million in cash from investors to purchase cryptocurrencies. The Wall Street Journal previously reported that the transaction, an unusually circular one with the same party acting as both buyer and seller, was expected to net the Trump family approximately $500 million, as they were entitled to receive up to 75% of the proceeds from the token sale. According to data website CoinMarketCap, trading volume for WLFI on cryptocurrency exchanges surged early Monday local time in the US, with approximately $1 billion worth of tokens changing hands within an hour. On Binance, WLFI began trading at around 30 cents before gradually falling to around 20 cents throughout the day, roughly in the same price range implied by futures contracts related to the cryptocurrency that traded on the exchange last week. At the higher price, the Trump family's holdings are worth over $6 billion. Including their stakes in other cryptocurrency businesses, the Trump family's total cryptocurrency holdings are even greater. Entities associated with Trump control approximately 80% of the multi-billion dollar so-called "Memecoin," Trump. A Trump trust owns just over half of the publicly traded Trump Media & Technology Group, which operates his "Truth Social" platform, and buys and holds cryptocurrencies. The stake is worth about $2.5 billion. To be sure, cashing out this newfound wealth could be difficult, as even a small sell-off in cryptocurrency could trigger a price drop. The price of WLFI on Monday was well above the 1.5 cents it cost investors when they initially purchased the token from World Liberty Financial last year, offering them an opportunity to make a killing. World Liberty Financial said these early buyers were initially only able to trade about a fifth of their holdings. Cryptocurrencies are known for their volatility, meaning the size of Trump's wealth could fluctuate significantly. The meme coin, launched in January, initially soared before plummeting. Critics of World Liberty Financial say the organization could become a tool for influencing the Trump family, driven by partners and investors seeking favors from the White House. For example, the Wall Street Journal previously reported that the market for World Liberty Financial's dollar-pegged stablecoin, USD1, is largely supported by Binance. White House press secretary Carolyn Levitt stated, "The president and his family have never been involved in, and will never be involved in, any conflicts of interest." Zach Witkoff, CEO of World Liberty Financial and son of special presidential envoy Steve Witkoff, stated last week that World Liberty Financial is a completely private company and does not engage in politics, even though "President Trump is clearly the greatest president ever." World Liberty Financial stated that the long-term value of its cryptocurrency will be supported by its plans to become a major industry player. In addition to issuing USD1, the company also plans to launch a mobile app. "This is not some meme coin," Donald Trump Jr. tweeted shortly after the launch. Tad Tobar, COO of the cryptocurrency company Lorenzo Protocol, said his company has partnered with World Liberty Financial and plans to buy and hold WLFI tokens, which give holders voting rights over some of World Liberty's operations, known as governance rights, but not a share of its profits. "Its staying power is real because it's designed to be the governance token for this new open economy," Tobar said.