World Liberty Financial’s recent deal with ALT5 Sigma Corporation has set a valuation for WLFI, the token associated with the Trump-backed DeFi project, for the first time since its sale last year. On Monday, ALT5 announced its strategic pivot into a crypto treasury company. This transition involves selling 200,000 new shares, with the proceeds earmarked for the acquisition of $1.5 billion worth of WLFI tokens. In a notable part of the transaction, half of these newly issued shares will be directly swapped for WLFI tokens held by World Liberty Financial. According to Matt Morgan, ALT5’s Chief Investment Officer, this exchange values each WLFI token at $0.20. It's important to note that World Liberty Financial may not be the only entity swapping WLFI tokens for shares. ALT5 disclosed that other unnamed institutional investors and venture capital firms also participated in the share sale. This valuation marks a significant milestone for WLFI, being its first formal valuation since World Liberty Financial sold $550 million worth of tokens to investors between October and March. During that period, purchase prices varied based on the investor's entry point. Notably, Tron founder Justin Sun is among the substantial WLFI holders, having purchased $75 million worth during the token sale. Previously, WLFI was programmed to be non-tradable, which prevented market-driven valuations.

Conflict of Interest Concerns

The deal highlights a growing trend of crypto treasury companies adopting strategies similar to Michael Saylor's MicroStrategy. MicroStrategy pioneered this model by issuing debt or shares to acquire Bitcoin, which saw its share price increase by over 3,500% since 2020. This approach has inspired numerous new crypto treasury companies, many of which have emerged under favorable regulatory conditions during the Trump administration. These companies commonly acquire cryptocurrencies by issuing debt or shares, sometimes entering public markets via reverse mergers. Potential conflicts of interest can arise when treasury companies purchase crypto assets from issuers with whom they have overlapping interests. For instance, Tron Inc., a treasury company focused on acquiring TRX tokens, has Weike Sun, father of Tron founder Justin Sun, on its board. This relationship was disclosed as a potential conflict in its recent SEC filing. As part of ALT5's pivot, several executives and backers from World Liberty Financial have joined ALT5's board. These include World Liberty Financial CEO Zach Witkoff, COO Zak Folkman, and Eric Trump. As all three hold WLFI tokens, they have a direct financial interest in the token's valuation. When questioned about potential conflicts of interest arising from these board appointments, Morgan declined to comment due to commercial sensitivity.

WLFI Token Trading and Governance

The WLFI token is designed to facilitate governance for World Liberty Financial, granting holders the ability to vote on protocol changes. However, the project emphasizes that it is not a decentralized autonomous organization (DAO). In July, WLFI holders voted to make the token tradable, following a proposal from the project's creators. World Liberty Financial announced via social media that WLFI trading could commence as early as the end of August.

Source: Originally published at DL News on 12 August 2025.

Frequently Asked Questions (FAQ)

About the WLFI Token Valuation

Q: What is the significance of the recent deal between World Liberty Financial and ALT5 Sigma Corporation? A: The deal marks the first time the WLFI token has received a formal valuation since its initial sale, setting it at $0.20 per token based on ALT5's acquisition of $1.5 billion worth of WLFI. Q: How did ALT5 Sigma Corporation acquire WLFI tokens? A: ALT5 plans to acquire $1.5 billion worth of WLFI tokens by selling 200,000 new shares. Half of these shares will be directly swapped for WLFI tokens held by World Liberty Financial. Q: Who are some notable holders of WLFI tokens? A: Tron founder Justin Sun is a notable large WLFI holder, having purchased $75 million worth during the token sale. Q: Was World Liberty Financial the only participant in the share swap for WLFI tokens? A: It remains unclear if World Liberty Financial was the sole participant, as ALT5 also disclosed that several other unnamed institutional investors and venture capital firms took part in the share sale. Q: Why did WLFI not have a formal valuation before this deal? A: At its launch, the WLFI token was programmed to be non-tradable, which prevented market-driven valuations from being established.

Crypto Treasury Companies and Conflicts of Interest

Q: What is the trend of crypto treasury companies? A: There is a rising trend of companies structuring themselves as crypto treasury companies, a model pioneered by Michael Saylor's MicroStrategy. Q: How do crypto treasury companies typically acquire assets? A: These companies often acquire cryptocurrencies by issuing debt or shares, and sometimes enter public markets via reverse mergers. Q: What are potential conflicts of interest in this sector? A: Conflicts of interest can arise between treasury companies and the issuers of the crypto assets they purchase, as seen in cases where board members have financial interests in the token being acquired. Q: Who joined ALT5's board as part of this deal? A: Several World Liberty Financial executives and backers joined ALT5's board, including Zach Witkoff (CEO), Zak Folkman (COO), and Eric Trump.

Crypto Market AI's Take

This development underscores the growing sophistication of the crypto market, moving beyond purely speculative ventures to more structured corporate finance strategies. The involvement of institutional investors and the clear valuation of a DeFi token highlight increasing maturity. However, as the article points out, the potential for conflicts of interest remains a critical area to monitor. Such arrangements, where token holders and board members have direct financial stakes, require robust governance and transparency. For insights into how companies are navigating the complex regulatory landscape and adopting innovative treasury strategies, our analysis on cryptocurrency treasury strategies provides further context. Furthermore, understanding the interplay between AI and finance is crucial in this evolving market, as explored in our piece on AI agents in the crypto market.

World Liberty Financial token valued at /bin/sh.20 in Trump crypto project’s ALT5 treasury deal