World Liberty Financial Transfers $305M in Crypto to Coinbase Prime—What’s Next?

A DeFi project called World Liberty Financial (WLFI), which has the Trump family as backers, has made a big on-chain move.

Not long ago, it sent eight different tokens now valued at around $305 million to Coinbase Prime. This has led to some speculation, to put it mildly, that WLFI might be on the verge of a massive token sell-off. WLFI, for what it’s worth, has denied that this is the case.

A Massive Crypto Transfer Raises Questions

The most recent deal done by the WLFI represents a large portion of the assets held in the project’s treasury, which consists of tokens obtained through public sales. The funds were sent to two places. First, and by far the larger of the moves, 85.5 percent of the assets were sent directly to Coinbase Prime, a top-flight institutional trading and custody platform. The other side of the transaction was completed by sending 14.5 percent of the assets to what is described as a “multi-signature wallet” held by WLFI (address 0xEe7). Some observers believe the latter transfer represents funds set aside for management of the project.

Although WLFI has officially declared that the deal is an asset allocation for business reasons, the reality is that most of the tokens were sent to Coinbase Prime, pointing to the distinct likelihood of a forthcoming sale—a situation compounded by the fact that once these assets get to the exchange, it is all but impossible to track what happens next, which adds an extra layer of market uncertainty.

Breakdown of the Transferred Assets

The assets moved are a combination of leading cryptocurrencies and stablecoins, underlining the huge amount of capital controlled by WLFI. Here is a closer look at the tokens and their values:

– Ethereum (ETH): 73,783 ETH valued at $212.5 million

– Wrapped Bitcoin (WBTC): 552.9 WBTC, valued at $56.02 million

– USDC: 22.85 million USDC

– Chainlink (LINK): 219,000 LINK, which amounts to $4.75 million

– Aave (AAVE): 16,500 AAVE, worth $4.62 million

– Move (MOVE): 2.05 million MOVE, valued at $1.38 million

– Ondo (ONDO): 114,000 ONDO, valued at $160,000

– Ethena (ENA): 4.941 million ENA, worth $3.34 million

The crypto community has taken note of the enormous size of these transfers. Many analysts are now watching closely to see if these assets will be liquidated and are pondering the market stability implications of that event.

WLFI still holds $96.62 Million in Assets

In spite of the considerable sum of money that has gone out, WLFI has a significantly large sum that it’s still holding. In nine wallets that we know of, the project has $96.62 million in assorted cryptocurrencies, which makes it quite a bit financially preserved in spite of that large sum going out.

All dollar amounts are in U.S. dollars, and all figures are as of October 2023.

Nonetheless, worries persist. This action’s timing, alongside the project’s unclear rationale, has many investors worried about what’s really going on. If a sizable chunk of the assets winds up getting sold, it’s not going to help maintain upward momentum for ETH, WBTC, or the other tokens mentioned.

What Comes Next?

The speculation over WLFI’s transfer to Coinbase Prime has sparked debate in the crypto community. Some see it as a routine treasury management move, while others think it might be a prelude to liquidation. Because the Trump family is involved, there may be more than simple economics at play. Political and financial motivations could also be factors.

At present, investors have no means of discerning whether these tokens will be traded or put to use in the ecosystem. What is certain, though, is that transferring this many tokens all at once is bound to stir things up, especially in DeFi. Whether it will create waves or just a few ripples is something that traders and market analysts will be keeping a close eye on, looking for any hints in follow-up transactions that could signal WLFI’s next move.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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