The Trump family’s crypto investments are currently experiencing a rough patch. Backed by the high-profile World Liberty Financial Initiative (WLFI), their digital asset portfolio has declined. Their investment, once valued at over half a billion dollars, is now in negative territory. Recent figures indicate a current loss exceeding $53 million.
According to on-chain data and recent disclosures, the WLFI portfolio currently holds 12 major tokens. This includes well-known tokens such as Ethereum, Wrapped Bitcoin, TRON, and LINK. DeFi-centric picks include AAVE, Ethena, Ondo Finance, and other tokens like Movement and Mantle. The total investment amounts to $347 million, but as of May 16, 2025, the value has dropped to $291 million, resulting in a 15% unrealized loss.
The damage appears more severe when viewed over a longer time frame. WLFI initially raised around $550 million during its launch phase in September 2024. The current valuation suggests nearly a 50% drop from peak levels before a partial recovery in recent months. Much of this downturn occurred in early 2025.
What Led to the WLFI’s Crypto Portfolio Underperformance?
Several factors contributed to the underperformance. One is the portfolio’s exposure to less-liquid tokens that lack exchange listings. A large portion of WLFI’s holdings are non-transferable and inaccessible on major centralized platforms. Without the liquidity to exit positions, WLFI found itself trapped in declining assets.
Additionally, the portfolio’s structure reveals a high-risk tilt toward newer, less proven projects like MOVE and MNT. These tokens once enjoyed hype cycles driven by influencer promotions and DeFi enthusiasm, but they have since struggled to maintain value. MOVE, tied to the Movement Labs ecosystem, and MNT, associated with Mantle’s layer 2 scaling solutions, experienced significant declines.
Beyond the market, critics have pointed to operational weaknesses within WLFI itself. Despite carrying the Trump brand, the fund lacks crypto-native experience. Analysts suggest this inexperience made WLFI particularly vulnerable to overexposure in trending sectors without rigorous risk controls. Unlike institutional players who hedge and diversify across time, WLFI appeared to chase momentum plays with limited regard for market depth or exit strategy.
Regulatory Concerns
Regulatory challenges further shadow the project. While no formal accusations have emerged, the involvement of politically connected figures raised early concerns about transparency and compliance. Questions surrounding the non-transferable nature of WLFI’s tokens, potential conflicts of interest, and unclear governance have reportedly deterred institutional investors and secondary buyers. As skepticism grew, it became harder for the fund to offload assets.
Despite all the losses, not all is doom and gloom. The portfolio still includes top cryptos like Ethereum (ETH), Wrapped Bitcoin (WBTC), and Chainlink (LINK). If the crypto market rebounds in the latter half of 2025, WLFI may recover a portion of its losses, particularly if it adjusts its strategy to improve token liquidity and diversify into more stable sectors.
READ MORE: FTX Schedules Second Creditor Distribution for May 30, 2025, Under Chapter 11 Plan
