The price of Cow Protocol’s COW token saw a significant increase of over 30% after World Liberty Financial (WLFI), a DeFi project associated with Donald Trump, completed a $2.5 million USDC trade to acquire 759.36 ETH using the platform. WLFI currently holds around 16,400 ETH worth $53.73 million, and has been actively purchasing various assets including ETH, WBTC, AAVE, LINK, ENA, and ONDO. This has resulted in losses for these tokens due to market volatility caused by Federal Reserve rate cuts and inflation forecasts.
The consistent use of the Cow Protocol by WLFI has generated interest in the platform, leading to a rise in the COW token’s value by nearly 35%, approaching $1.00. WLFI’s investment activities have sparked market rallies throughout December, with purchases totaling over $45 million, including Ethereum, ONDO, and ENA. These investments caused the COW token to reach $1.02, its highest value in over a year. WLFI has also acquired AAVE and LINK tokens, which led to LINK reaching a three-year high of $28.
Recently, WLFI and Ethena Labs added sUSDe as collateral on WLFI’s Aave v3 platform, enhancing its functionality. The project also swapped $10.4 million of cbBTC for WBTC following the delisting of cbBTC by Coinbase. Justin Sun, a prominent investor and advisor to WLFI, endorsed WBTC, praising its governance and transparency compared to cbBTC. Despite these positive developments, WLFI has encountered challenges since its launch, such as reducing its presale target from $300 million to $30 million, an 90% decrease. Additionally, WLFI tokens are currently non-transferable and limited to non-US and accredited US investors, impacting the project’s early sales performance.
In conclusion, the involvement of World Liberty Financial in the cryptocurrency market is making a significant impact on various altcoins. The project’s strategic investments and use of the Cow Protocol have been driving market rallies and speculations. Despite facing challenges and restrictions, WLFI continues to make notable acquisitions and developments that are influencing the crypto space. With the support of key figures like Donald Trump and Justin Sun, World Liberty Financial’s influence in the digital asset realm is expected to grow, potentially leading to further market disruptions and price movements in the future.
