World Liberty Financial (WLFI) faced a significant setback in its crypto portfolio, losing $51.7 million as the market experienced a sharp downturn.
The drop came on the heels of U.S. President Donald Trump’s implementation of import tariffs on Canada, Mexico, and China. This has spurred a broader global market shift as investors sought safer assets.
Coinglass data revealed that total liquidations across the crypto market reached $2.22 billion in the past 24 hours, impacting 724,783 traders. WLFI, a Trump-linked crypto initiative, was hit particularly hard by the slump.
Heavy Losses in WLFI’s Crypto Portfolio
Between January 19 and January 31, World Liberty Financial invested $242.77 million across multiple assets. However, this acquisition is facing a massive unrealized loss of $51.7 million.
The most significant holding is Ethereum (ETH), with 45,405 ETH acquired at an average price of $3,303. ETH’s present valuation of $2,495 has resulted in a $36.67 million unrealized loss, the highest in absolute terms.
Its Wrapped Bitcoin (WBTC) holding has also declined, with 629.095 WBTC purchased at an average of $106,248 per BTC. The current price of $93,426 has led to an unrealized loss of $8.07 million, a decrease of 12.07%. Other assets in the portfolio faced even steeper declines.
Ethena (ENA) saw the highest percentage drop at 43.72%, while AAVE and LINK recorded losses of 35.74% and 30.27%, respectively.
In particular, every asset in WLFI’s portfolio is currently in negative territory, with losses ranging from 12% to 43.72%.
Strategic Investment Before Crash
Before these setbacks, WLFI had continuously acquired crypto. It recently increased its Ethereum holdings to over 70,000 ETH, spending an additional $10 million USDT to buy 2,972 ETH. This move raised the fund’s total ETH investment to approximately $235 million.
On January 28, WLFI allocated another $1.88 million in USDC to acquire 2.398 million MOVE tokens. Over the previous seven days, the fund had invested $222.77 million across seven cryptocurrencies, including $129.95 million in ETH, $66.84 million in WBTC, $10 million in TRX, and $4.7 million each in AAVE, ENA, and LINK.