World Liberty Financial, which is associated with the Trump circle, converted 4,870 Ethereum into USDC for approximately $10.61 million, selling off 4,870 Ethereum at an average price of $2,178, according to market data. While this large sale attracted attention, the Ethereum price traded around $ 2,185 after the transaction and declined slightly during the day.
Selling Pressure and Market Reactions
World Liberty’s Ethereum sale was a continuation of recent moves regarding the project’s treasury, which is closely watched in the markets. According to information obtained from cryptocurrency tracking tools, the sale was converted into USDC, a dollar-indexed stablecoin that is widely used in crypto markets. Such large-scale transactions can directly affect market sentiment, especially when it comes to projects linked to political figures or with a wide investor base.
World Liberty’s own governance token, WLFI, has also been experiencing sharp fluctuations recently. The WLFI token was recently trading at around $0.08, well below its previous peak. The fact that 20% of the investors in the project will be able to release their assets now may usher in a new era in the supply-demand balance in the market.
Following World Liberty’s sale of 4,870 ETH, market analysts began to closely monitor large transactions in projects with high political influence and its impact on crypto assets.
The project was previously discussed for conducting a $75 million loan transaction using the WLFI token as collateral. US lawmakers and legal experts raised the view that this structure raises a question mark in terms of investor protection and liquidity.
Global Outflows in Spot Ethereum ETFs
The Ethereum market continued to come under pressure, especially with cash withdrawn from US-listed spot ETFs. There was a total net outflow of $255.11 million in spot Ethereum ETFs during the week of May 11–15.
BlackRock funds sold 77,567 ETH and Fidelity sold 25,770 ETH in the same week. Grayscale 7,409 ETH; ARK 21Shares sold 637 ETH. On the other hand, VanEck was recorded as one of the few institutions that purchased ETH instead of selling it.
All US spot crypto asset ETFs saw net outflows totaling $1.13 billion. Approximately $1 billion of this amount came from Bitcoin ETFs; Thus, the outflow of institutions continued in both Bitcoin and Ether markets.
Market and Legal Discussions Continue
Despite all these outflows, the Ethereum price remained balanced in the range of $ 2,150-2,185. Analyst Ali Martinez stated that Ethereum retreated to the lower limit of the price channel, and said that the price could recover if the $ 2,150 support is maintained. If the selling pressure increases, movements below $ 2,150 may bring new weakness.
On the other hand, the token structure and use of funds in the World Liberty project are still on the agenda of lawyers. Experts say that the WLFI token may be subject to the Howey test for security status in the US; However, he stated that the project was not found responsible by the court in this regard.
World Liberty is also in the spotlight due to the dispute with Tron founder Justin Sun. It was reported that after Sun invested $45 million in the project, his relevant tokens were frozen and he could not move his assets due to account restrictions.
Zach Witkoff and Eric Trump, who are in the management of World Liberty, shared with the public that they found Sun’s claims completely unfounded. The dispute between the parties has become part of a larger lawsuit over investor rights and project management.
