Denial of Token Swap Agreement by WLFI Representatives
Representatives from two prominent protocols, whose tokens are currently held by the treasury of World Liberty Financial (WLFI), are firmly denying the existence of a proposed token swap agreement. This alleged agreement purportedly required a substantial buy-in ranging from $10 million to $15 million for inclusion in the project, which is notably backed by former President Donald Trump and his family.
A recent report by Blockworks on Monday suggested that WLFI representatives had approached various protocol teams with an enticing offer. The purported deal involved purchasing $10 million worth of WLFI tokens, along with an additional 10 percent fee. In exchange, WLFI would reciprocate by acquiring an equivalent amount of the tokens from these protocols.
In response to the report, a spokesperson from TRON categorically stated, “There is no token swap agreement.” TRON’s TRX token is significant, as it ranks as the second largest holding in WLFI’s wallet, based on on-chain data meticulously curated by Arkham.
Currently, the WLFI wallet boasts an impressive holding of approximately 40.7 million TRX, valued at around $9.3 million. These acquisitions were made in multiple tranches throughout January, reflecting WLFI’s active investment strategy.
Moreover, Movement Labs, the team behind the MOVE token, also denied any claims regarding a token swap agreement. Notably, the MOVE token experienced a surge in value in late January when WLFI purchased $2 million worth of it amid swirling rumors of potential discussions with the Department of Government Efficiency, led by Elon Musk.
Rushi Manche, the co-founder of Movement Labs, reiterated to CoinDesk that they had not transferred tokens to any party, including WLFI. “There weren’t any deals — no backdoor arrangements. It was purely just market buying,” Manche clarified, emphasizing the transparency of their transactions.
