"This is not just a simple meme coin; it is the foundation of a real system that changes the flow of money. Freedom + finance + America comes first."Donald Trump Jr. posted on X (formerly Twitter) on April 1 (Eastern Time),
World Liberty Financial Coin (WLFI), a virtual asset gaining attention as part of the business of President Donald Trump's family, has started trading globally. Despite controversy over its close association with President Trump, investors are highly valuing the investment potential of WLFI.
According to CoinMarketCap, a virtual asset market overview site, as of 3 p.m. on the 2nd, WLFI ranks 9th in global transaction volume. Other WLFI-related virtual assets, stablecoin USD1 and meme coin Official Trump, ranked 12th and 14th in transaction volume, respectively. Interest in WLFI is also high domestically. WLFI, which was listed simultaneously on domestic exchanges Upbit, Bithumb, and Coinone the day before, has already surpassed Bitcoin's transaction volume within less than a day of trading.
◇ The Trump family dreaming of decentralized finance centered on the U.S.
Some also point out that WLFI is in fact a meme coin (a virtual asset whose price fluctuates dramatically according to trends), similar to "Official Trump." However, the virtual asset industry still categorizes WLFI as a decentralized finance platform project that is not without substance. World Liberty Financial (WLF), which issues WLFI, is a decentralized finance protocol virtual asset company established in October 2024 with its headquarters in Delaware, U.S. DeFi is a platform that allows users to lend and invest digital assets without relying on traditional banking systems.
In short, WLF's goal is to create a U.S.-centered crypto bank and tokenized asset management platform. WLF publicly released its slogan "making virtual assets and America great" through its site. In particular, the Trump administration is creating a friendly regulatory environment for virtual asset companies like WLF, intending for WLF to lead the global decentralized finance sector based on the dollar.
To achieve this goal, WLF has issued its own stablecoin, USD1. Similar to Tether (USDT) and Circle (USDC), its value is pegged 1:1 to the U.S. dollar, and the reserves corresponding to its issuance consist of short-term U.S. government bonds, U.S. dollar deposits, and other cash equivalents. Currently, the market capitalization of USD1 is $2.33 billion (approximately 3.2473 trillion won), accounting for 0.86% of the total stablecoin market share. USD1 is expected to be used as the currency in the virtual asset ecosystem that WLF will create.
The reason WLF and its associated virtual assets attract attention is undoubtedly due to President Trump, who has a significant influence on cryptocurrency regulation. From the early days of his presidency, Trump has actively promoted policies supporting the growth of the virtual asset industry, benefiting companies like WLF. Since Trump has not even completed a year in office, many investors are optimistic about the potential for a regulatory environment that favors WLF.
◇ This is the business of the U.S. president, the regulator, but it also involves controversy over insider trading.
At the same time, the biggest problem is President Trump himself. WLF is effectively a family business, registered with Trump as the honorary co-founder, along with his three sons Eric Trump, Donald Trump Jr., and Barron Trump as co-founders. WLF has faced criticism for operating in an unprecedented manner that blurs the boundaries between private business activities and presidential powers, raising concerns about the fusion of politics and business.
For instance, the meme coin that heated up the market earlier this year, Trump and Melania meme coin, serves no purpose in the WLF ecosystem. However, Eric Trump, who leads WLF, has formalized a strategy to utilize this meme coin for long-term holding. Additionally, the Trump family holds about 22.5% of the total issuance of 100 billion WLFI tokens, which amounts to approximately $5 billion (about 7 trillion won) as of that day.
There are also controversies regarding insider trading. The Trump family has established a structure to collect cash regardless of WLFI's transaction performance. WLF has formed a special relationship with Alt5 Sigma, a publicly listed company on the Nasdaq, before the token listing. Jack Witkoff, one of the co-founders of WLF, became chairman of Alt5 last August, and Eric Trump, the second son of the President, joined the board of directors.
Those who secure management rights have decided that Alt5 will invest $750 million to purchase WLFI tokens. According to an agreement, up to 75% of the revenue generated from this transaction will be paid to corporations owned by the Trump family. The Wall Street Journal (WSJ) estimates that this amount alone could reach about $500 million (about 695.4 billion won), noting that had this been a typical family business, it would have faced stringent oversight from financial authorities.
Ju Ki-young, CEO of Crypto Quant, said, "World Liberty Financial is not a meme coin like Official Trump, but no clear products or plans have been presented yet," and advised that "recently, in the virtual asset industry, fame itself can sometimes correlate with a project's value, so there is potential for a short-term rise, but caution is necessary when investing."