The Trump-backed WLFI project has experienced significant financial setbacks as its cryptocurrency portfolio has plummeted in value. Initially valued at $336 million, the portfolio now stands at approximately $226 million, marking a $110 million loss.
WLFI's Financial Losses
Among the nine cryptocurrencies in its holdings, Ethereum (ETH) holds the largest share, making up 65% of the portfolio. However, ETH’s price decline has significantly contributed to WLFI's overall losses.
Ethereum Leads the Decline
ETH’s price has dropped substantially from the average purchase cost of $3,240 to its current trading price of around $2,000. This decline has caused a major dent in the WLFI fund, making Ethereum the biggest contributor to the project's losses.
Uncertain Future for WLFI
The WLFI project’s future remains uncertain as it grapples with market fluctuations and asset devaluation. With ETH making up the majority of its holdings, any further downturn in the cryptocurrency’s price could lead to additional losses.
Investors and analysts will be closely watching the project's next moves in response to the declining portfolio value. A potential market recovery could help WLFI regain lost ground.
