beincrypto.com
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.