In recent years, numerous cryptocurrency platforms have emerged, each promoting unique tokens governed by individual company rules. These companies often claim certain protections regarding the security and management of their funds. Although some tokens have appreciated in value, the majority have seen declines along with the overall cryptocurrency market.
The primary token for World Liberty, called WLFI, has dropped 74% since August and was trading at around 8 cents as of Monday. On the other hand, its stablecoin, USD1, which is supposed to maintain a value of 1 US dollar, ranks among the ten most utilized stablecoins. The popularity of World Liberty’s stablecoin is bolstered by notable partnerships and its presence on major exchanges like Binance and Kraken.
Comments from Sun have surfaced as investor worries about World Liberty’s financial health grow. In February, it was reported that World Liberty borrowed $75 million from a crypto entity known as Dolomite, using 5% of WLFI’s total supply as collateral. This raised concerns on social media about whether World Liberty could repay the loan if WLFI’s value continues to drop.
World Liberty stated on X that the company was “far from liquidation” and mentioned it would only provide more collateral if prices fell even further. They also claimed to have already repaid $25 million.
Efforts to reach representatives for Sun and Dolomite for comments were unsuccessful.
Austin Campbell, a crypto consultant and lecturer at NYU, expressed that the worries regarding this financing deal seem justified.
“If this practice were applied to traditional markets, there would definitely be issues,” he noted.
Officials from the SEC did not respond to inquiries. Last year, House Democrats dedicated a week to criticize the cryptocurrency activities linked to the Trump family, accusing them of profiting from political ties. The White House, however, denied any wrongdoing.
World Liberty’s management document states the Trump family-owned firm claims 75% of the proceeds from token sales, minus operating costs. President Trump reported over $57 million in earnings from World Liberty on his financial disclosure for 2025. There was no response from representatives of the Trump Organization, and the White House has denied any conflict of interest thus far.
Just before his inauguration in January 2025, Trump issued another token called TRUMP through a different legal entity. Like WLFI, the value of TRUMP has also significantly dropped, currently trading at about $2.81—down from as high as $45 at launch. A token issued by Melania Trump around the same period has followed a similar trend, although she denies any active role in managing the coins.
