- World Liberty Financial transfers $307M in crypto, including ETH and WBTC, to Coinbase.
- The move reduces the project’s treasury holdings by 90%, sparking market speculation.
World Liberty Financial the DeFi project backed by US President Donald Trump and his family members including Eric Trump, Donald Trump Jr. and Barron Trump recently transferred $307 million worth of cryptocurrency to Coinbase Prime.
The assets included Ethereum (ETH), Wrapped Bitcoin (WBTC), and other tokens like AAVE, ENA, and LINK. This move, executed in 13 transactions, ranging from $4M to $95M, reduced the project’s treasury holdings by 90%, leaving only a small portion of its assets untouched.
What Prompted the Massive Transfer?
According to on-chain data from Spotonchain, the transfers were part of routine treasury management and business operations. World Liberty Financial clarified that the move was not a sell-off but a reallocation of assets to cover expenses, fees, and working capital needs. The project emphasized that it remains committed to its crypto holdings despite the significant reduction in its treasury.
The only major asset not transferred was TRX, acquired through an investment from Tron founder Justin Sun, who also serves as an advisor to the project. He made an initial investment of $30M and later bumped the stake to $75M.
Market Reactions and Ethereum’s Rebound
The transfer of such a large amount of cryptocurrency to Coinbase initially caused concern among investors, with fears that World Liberty Financial might be preparing to sell its holdings. This led to a brief period of downward pressure on Ethereum and other assets involved in the transfer. However, the market quickly stabilized as the project clarified that the move was not a sell-off but part of routine treasury management.
Ethereum, in particular, demonstrated remarkable resilience. After dipping below $2,000 earlier in the week due to broader market volatility, ETH rebounded by 50%, surpassing the $2,800 mark.
This recovery was fueled by increased buying activity from large investors, often referred to as “whales,” who took advantage of the lower prices to accumulate more ETH. Analysts noted that the $2,800 level is a key support zone for Ethereum, and the asset’s ability to hold this level signals strong underlying demand.
The transfer has sparked speculation about the future of World Liberty Financial’s crypto strategy. Some analysts suggest the move could signal a shift in how the project manages its assets, while others see it as a routine financial adjustment.
Additionally, the timing of the transfer coincides with growing interest in cryptocurrencies from institutional players, including discussions about a proposed Sovereign Wealth Fund backed by former U.S. President Donald Trump.
Eric Trump, son of Donald Trump, added to the buzz by suggesting on social media that the recent market dip presented a buying opportunity for Ethereum. His comments further fueled optimism among retail investors, many of whom see Ethereum as a long-term investment.