World Liberty Financial (WLFI) purchased $3 million in EOS tokens last night, leading the community to react with surprise and suspicion. EOS price has climbed over 9% since the acquisition took place.
Some observers compared this to World Liberty’s recent alleged ETH sale, which took place at a three-month price bottom. However, even if today’s deal seems strange, there isn’t any evidence of misconduct or insider trading yet.
Why Did WLFI Buy So Much EOS?
President Trump and his family are involved with many crypto projects, but World Liberty Financial in particular has been a lightning rod for political controversy.
The firm invested in many tokens, but faced over $100 million in unrealized portfolio losses in March. Lookonchain identified WLFI’s massive EOS purchase, starting a minor spectacle:
Immediately, the community reacted with intense skepticism. Many even suggested that market manipulation was underfoot. To be fair, the project isn’t completely dead. EOS, a Web3 banking network, recently hit a high after rebranding in March.
Still, it seems very odd that WLFI would spend so much on EOS when its best-performing years are far behind it. The token’s valuation had a price floor between $2 and $ 4 throughout 2020 and 2021, not counting major spikes. By contrast, it’s spent most of the last 12 months below 50 cents.
Some observers even connected WLFI’s EOS investment to a recent debacle with Ethereum. At the start of the year, World Liberty acquired massive ETH holdings at $3,259 a token.
Months later, blockchain data shows it liquidated much of its reserves at a price of $1,465, making a loss of over $125 million.
WLFI, for its part, denied the ETH sale outright. In any event, Ethereum rallied shortly afterwards, and the alleged sales took place precisely at a three-month price bottom.
Since WLFI made this purchase, EOS climbed more than 9%. It’s hard to say what exactly is going on here. World Liberty Financial’s business ventures generate a huge amount of controversy, but there’s no concrete evidence of foul play yet.
The community will surely keep an eye on this story for further developments.
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