Key takeaways
- World Liberty Financial stands out due to its association with Donald Trump. The project has been recently in the news because of reports of it engaging in token swaps and sales.
- World Liberty Financial has restricted token sales to accredited investors to navigate US regulations, ensuring compliance with federal securities laws.
- The WLFI token is nontransferable after purchase. It allocates 63% of tokens for public sale, while 20% of the tokens are reserved for the founding team.
- The platform actively manages its crypto holdings, with significant investments in ETH, WBTC and stablecoins, adapting to market fluctuations.
While there is a string of decentralized finance (DeFi) projects around, what makes World Liberty Financial stand out is its association with none other than Donald Trump, the 47th president of the United States.
After a harsh regulatory approach by the Biden administration, the crypto sector is buoyed by the supportive measures of the Trump administration. The announcement of the project came when Trump was campaigning for the US presidency. With Trump’s inauguration as president, all eyes in the crypto sector are focused on the project.
World Liberty Financial has recently been in the news for token swaps and sales. The project has been reportedly courting blockchain projects to participate in token swap deals and issued a denial claiming it hasn’t sold any of its WLFI tokens.
This article explains what token swaps and sales are, discusses what World Liberty Financial is, and its recent token swap and sale activities.
Token swaps vs. token sales: Key differences
Understanding terms like token swap and sale is important for anyone looking to engage with crypto assets.
Understanding token swaps
A token swap is the exchange of one cryptocurrency token for another, either on the same blockchain or across networks. These swaps can take place automatically via smart contracts or manually using exchanges. For example, Ether (ETH) can be swapped for Dai (DAI) on the Ethereum blockchain, or Tether’s USDt (USDT) can be swapped for USD Coin (USDC) on the Solana network.
Crosschain swaps allow users to exchange assets between blockchains without using intermediaries, therefore improving interoperability. It allows different blockchains to interact and share value seamlessly. In decentralized finance (DeFi), crosschain swaps play an important role. They allow users to exchange assets directly in a decentralized and trustless manner. This is possible by leveraging smart contracts or specific processes such as atomic swaps and bridges.
In contrast, when transferring funds across blockchains, traditional methods require you to use a centralized platform. These platforms come with risks like losing control of your funds, paying high fees and dealing with delays.
Understanding token sales
Token sales are fundraising methods where crypto projects distribute digital tokens to investors in exchange for capital. These sales help startups develop products, expand ecosystems, and drive adoption.
Here are various types of token sales. Each method caters to different needs, balancing accessibility, security and decentralization.
- Initial coin offering (ICO): A project directly sells tokens to the public, often before launch.
- Initial exchange offering (IEO): Tokens are sold via a centralized exchange, ensuring security and credibility.
- Initial DEX offering (IDO): A token launches on a decentralized exchange (DEX), providing instant liquidity.
- Private sales: Reserved for select investors, offering early access at lower prices.
Token sales provide benefits such as:
- Fundraising: Enables projects to secure capital without traditional investors.
- Community building: Early investors become engaged supporters, driving adoption.
- Liquidity generation: Listing tokens on exchanges boosts trading activity and value.
Difference between token swaps and token sales
Token swaps and token sales serve different functions in the cryptocurrency ecosystem. Token swaps are generally used for migration, upgrades and crosschain transfers. On the other hand, a token sale is a method of raising funds in which investors buy new tokens to support a business.
Swaps are often automated using smart contracts, whereas sales occur through ICOs, IEOs or IDOs. Swaps maintain existing value for investors, whereas sales include financial risk but may yield returns.
This table illustrates the difference between token swaps and token sales:
Now, let’s understand what World Liberty Financial is and how it utilizes token swaps and sales in its operations.
What is World Liberty Financial?
World Liberty Financial (WLF) is a DeFi platform offering digital asset borrowing, lending and investment opportunities. Launched in September 2024 by DT Marks DEFI and WLF Holdco during a live-streamed audio event on X Spaces, the platform aims to drive stablecoin adoption and position US-pegged assets as a key component of global financial transactions.
According to World Liberty Financial’s “gold paper,” the protocol’s mission is to introduce a new era of DeFi.
It operates under the Delaware-based WLF Holdco, which holds full ownership and control of the protocol.
By removing intermediaries, WLF seeks to lower transaction costs and expand financial accessibility. It facilitates user access to third-party DeFi apps, enabling activities like earning interest on stablecoins and borrowing crypto.
At the core of its ecosystem is WLFI, a governance token that grants holders the ability to vote on platform decisions. But, unlike traditional cryptocurrencies, WLFI tokens are nontransferable after purchase, preventing speculative trading. This model, designed to satisfy regulatory concerns, restrains the tokens’ accessibility and appeal, as no financial incentive is tied to holding them.
The platform is slated for a Q3 launch in 2025, with an anticipated fully diluted valuation of $1.5 billion. A key feature is the absence of any token vesting period.
Did you know? Donald Trump’s “Chief Crypto Advocate” title and Eric Trump and Donald Jr.’s “Web3 Ambassador” roles appear to be primarily for show. Barron, Donald Sr.’s 18-year-old son, is a “DeFi Visionary” with the project.
Holdings of World Liberty Financial as of Feb. 3, 2025
World Liberty Financial maintains a diversified portfolio of major cryptocurrencies and stablecoins, with its crypto holdings amounting to $373 million on Feb. 3, 2025, with major stakes in ETH and Wrapped Bitcoin (WBTC). As of early February, World Liberty Financial had allocated $266.72 million to ETH at an average price of $3,396.03. But, due to market fluctuations, this investment has declined by 21.79%, bringing its current valuation to $208.61 million, with a total holding of 78,538.77 ETH.
The platform’s investment in WBTC has also decreased. Initially valued at $67.42 million with an average purchase price of $104,243.93, it has dropped by 7.59%, now at $62.3 million, with 646.72 WBTC reserves.
To ensure liquidity, World Liberty Financial has also invested in stablecoins, holding $37.26 million in USDC and $10.84 million in USDT. This balanced approach allows World Liberty Financial to maintain flexibility while leveraging long-term growth potential in digital assets.
Onchain data reveals that over 81,000 unique wallets hold the WLFI governance token, with more than 120,000 transactions recorded as of Feb. 16, 2025. Additionally, the project reportedly leverages the Aave protocol on the back end, incorporating enhanced Know Your Customer (KYC) procedures compared to the original decentralized lending protocol.
Did you know? Over 170,000 listeners initially tuned in to the launch event of World Liberty Financial, which was hosted by Rug Radio co-founder Farokh Sarmad.
World Liberty Financial token swaps
Reportedly, World Liberty Financial was engaging in token swaps with blockchain projects with recently acquired tokens. But World Liberty Financial has denied selling any of its WLFI tokens.
On Feb. 3, World Liberty Financial addressed these claims in a social media post, stating that it routinely adjusts its crypto holdings as part of its treasury management strategy. The statement came shortly after a Blockworks report that World Liberty Financial allegedly arranged token swaps, aiming to sell at least $10 million worth of its yet-to-be-launched WLFI tokens (also called pre-sale token swaps).
According to the report, the proceeds would be used to purchase an equivalent amount of another project’s native cryptocurrency, with a 10% fee attached to the transaction. It mentioned that a blockchain project received a crypto swap offer from World Liberty Financial, requiring a minimum investment of $10 million. But preferential treatment would only be granted for investments of $15 million or more.
Token sales: Sale of WLFI tokens
World Liberty Financial’s WLFI token sale has drawn significant attention for its success and controversy. With a total supply of 100 billion tokens, the project allocated 25 billion for sale. The initial sale of 20 billion WLFI tokens raised $300 million at a price of $0.015 each.
On Jan. 20, 2025, the project claimed it had sold 20% of its supply and announced plans to sell another 5%. Tron founder Justin Sun emerged as the largest investor, purchasing $30 million worth of WLFI in November and committing an additional $45 million in January.
In mid-February, World Liberty Financial sold approximately 24.1 billion tokens, leaving a little more than 904.432 million tokens available for purchase (as of Feb. 16, 2025). With this, World Liberty Financial has sold more than 96% of its tokens after an initial slow start.
WLFI co-founder Zak Folkman stated in a livestream on Sept. 16, 2025, that 20% of the tokens will go to the founding team, including the Trump family, 17% will be used for user rewards, and 63% will be available for the public to purchase. There will be no pre-sales or early access for the token.
Folkman noted that due to regulatory uncertainty surrounding token sales in the US, and despite not considering WLFI security, they will restrict US participation in the token sale to accredited investors only. This precaution ensures compliance with US federal securities laws regarding unregistered transactions.
The term “accredited investors” is used for individuals or institutions that meet certain financial criteria, such as having a net worth of over $1 million (excluding their primary residence) or earning over $200,000 in annual income for the past two years. The objective of the restriction is to onboard only those investors who are financially sophisticated and capable of handling the risks associated with speculative investments, including cryptocurrency tokens.
Folkman clarified that only individuals verified as accredited investors will be eligible to participate. Furthermore, any potential token sale to non-US individuals will also be subject to applicable restrictions, though he didn’t mention the specifics.
Here’s a table summarizing the key details of the WLFI token sale
Did you know? The WLFI token will be a Regulation D token offering. It is a Securities and Exchange Commission provision that allows companies to raise capital without registering their securities, provided they adhere to specific requirements.
Criticism of the WLF project
Despite strong sales, the project has faced sharp criticism. Critics equate Trump’s backing of a decentralized project with associating his personal brand with diverse products, from gold sneakers to silver coins and watches.
Former White House Communications Director Anthony Scaramucci labeled it a “scammy grift” that harms the crypto industry. In a Sept. 18, 2024, interview at the crypto event Token2049, Scaramucci called WLFI a “potential pump-and-dump disaster for individual investors.”
Billionaire Mark Cuban also criticized the launch, calling it an act of “desperation” and arguing that the project lacks true innovation or value.
However, others view Trump’s DeFi endeavor more positively, believing his ability to connect with large audiences could play a significant role in driving wider crypto adoption.
Written by Dilip Kumar Patairya