My Crypto Paper – 24/7 Cryptocurrency & Blockchain News
Image default
Trump-Backed World

Trump-Backed World Liberty Financial Offloads Ethereum (ETH) at Heavy Loss

TLDR

  • World Liberty Financial, Trump’s DeFi venture, reportedly sold 5,471 ETH for $8.01 million at a loss
  • The project initially invested $210 million in 67,498 ETH at an average price of $3,259 per token
  • World Liberty is currently facing an estimated $125 million unrealized loss on its crypto investments
  • A long-term Ethereum whale sold 10,000 ETH for $15.71 million after holding for over 900 days
  • Analysts predict ETH could find support at $1,200, with possible recovery after May Fed rate cuts

World Liberty Financial, the DeFi project endorsed by former President Donald Trump, has reportedly begun selling its Ethereum holdings at a loss.

According to blockchain analytics firm Arkham, a wallet linked to the project sold 5,471 ETH worth approximately $8.01 million at $1,465 per token about 4-5 hours ago.

This sale comes as Ethereum has crashed to around $1,400, marking a 56.86% drop since the beginning of 2025. The crypto market downturn has affected even institutional investors, with World Liberty Financial appearing to cut their losses.

The project had previously invested heavily in Ethereum, spending about $210 million to acquire 67,498 ETH at an average purchase price of $3,259 per token. With Ethereum trading well below this acquisition price, World Liberty currently faces an estimated unrealized loss of $125 million.

Has Trump’s World Liberty(@worldlibertyfi) started selling $ETH at a loss?

According to Arkham, a wallet possibly linked to #WorldLiberty sold 5,471 $ETH($8.01M) at $1,465 30 minutes ago.#WorldLiberty previously spent ~$210M to buy 67,498 $ETH at an average price of $3,259,… pic.twitter.com/jPMqCiADvt

— Lookonchain (@lookonchain) April 9, 2025

Long-Term Holders Liquidating

It’s not just World Liberty Financial feeling the pressure. A long-term Ethereum whale has also exited their position after holding 10,000 ETH for over 900 days, according to Arkham Intelligence.

This whale sold their entire ETH holdings for $15.71 million earlier today. They managed to lock in a profit of $2.75 million, having initially purchased the 10,000 ETH for $12.95 million at an average price of $1,295 in two transactions back in late 2022.

What’s interesting is that this whale continued holding even when ETH reached $4,000, which would have represented a $27.6 million profit. Their decision to sell now for lesser gains suggests growing pessimism about Ethereum’s near-term prospects.

The actions of World Liberty Financial and major whales could potentially trigger more selling pressure. Retail investors are watching closely, and these high-profile sales might lead to a broader market dump.

Market Outlook and Analysis

Ethereum has broken below multiple support levels in 2025, causing concern among investors. Crypto analyst Ali Martinez has identified $1,200 as a potential key support level for Ethereum amid its ongoing downtrend.

This level could prove crucial for ETH to stabilize and potentially reverse its decline. Another analyst known as venturefounder believes Ethereum may be at or approaching its cycle bottom, potentially reaching its lowest point by the end of April.

However, there’s a potential catalyst on the horizon. The Federal Reserve is expected to cut interest rates in May, which could be accompanied by a new round of quantitative easing. This injection of liquidity might help Ethereum and the broader crypto market recover.

Ethereum Price on CoinGecko

The crypto market as a whole is experiencing a sharp decline. Bitcoin has fallen over 20% since early February. Other major cryptocurrencies have fared even worse, with XRP and Cardano each losing around 30%.

Solana has been hit especially hard with a nearly 50% drop, matching Dogecoin’s 47% decline. Among the top 10 cryptocurrencies, only TRON and Binance Coin have shown relative resilience during this market downturn.

World Liberty Financial has previously been involved in controversies regarding token sales and management. However, the project has strongly denied allegations of unauthorized token sales or swaps.

As Ethereum continues to struggle, investors are left wondering whether this is just another dip in the volatile crypto market or the beginning of a more extended bear market. The next few weeks, particularly around the anticipated Fed decision in May, could prove pivotal for ETH’s price trajectory.

With World Liberty Financial potentially continuing to offload its ETH holdings and other large holders following suit, Ethereum faces increasing selling pressure in the short term. Many analysts are now watching the $1,200 level as critical support that must hold to prevent even deeper losses.

Oliver Dale

Editor-in-Chief of CoinCentral and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact Oliver@coincentral.com

Read More

Related posts

Trump’s World Liberty Financial Submits Proposal to Ethereum DeFi Protocol Aave

Real World Assets (RWAs) in Crypto and Web3: A Fun & Easy Guide

Fix The Money, Fix The World

M Rashid

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.

Please enter CoinGecko Free Api Key to get this plugin works.