World Liberty Financial now carries a market value near $5.6 billion. However, many of us who watched WLFI’s debut are still unsure what the project actually does, what has shipped, and what, if anything, is new.

To date, deliverables include USD1, governance voting, and a proposed Aave v3 money market. Let’s weigh those elements against the valuation and ownership incentives that frame WLFI’s first days of trading.

World Liberty Financial’s WLFI token began public trading on Sept. 1 after holders voted to allow transfers.

The launch put a multibillion-dollar value on a token that started life as nontransferable, raising an immediate question for investors assessing a roughly $5 billion to $7 billion market value: what is substantively new here?

What has WLFI actually shipped?

The project describes WLFI as a governance asset. Holders can vote on proposals, including the July decision to make WLFI tradable, but published materials and third-party explainers do not show equity, revenue rights, or other cash flow tied to the token.

That framing, governance without economic rights, remains the clearest documented utility as of this week. The shift to tradability came by vote and does not add a claim on protocol revenue.

What has shipped around WLFI is largely adjacent infrastructure. USD1, a dollar stablecoin issued by the same venture, is live with custody and infrastructure provided by BitGo, and Binance announced a USD1 spot listing in May.

These elements establish fiat on-chain plumbing but accrue no direct economic right to WLFI holders.

The flagship money market that would mark clear DeFi utility, a proposed Aave v3 instance branded for WLFI, has gone through Aave governance checkpoints. However, there is still no public, verifiable WLFI front end or running market for users.

The Aave forum shows a temp check and an ARFC thread for an Ethereum deployment, yet no production launch is documented on Aave’s site or WLFI’s public channels. As Aave governance records indicate, the idea exists on paper, not as a usable market today.

Trading began via a staged unlock and a Lockbox claiming flow. Exchange communications reference pre-market perpetuals that transitioned alongside the spot go-live, and multiple venues now show WLFI pairs or price pages, with activity on Binance, OKX and Bybit.

The mechanics concentrated the initial float, with only a fraction of the supply unlocked for early investors. Per Bybit’s pre-market notice, OKX, and day-one reporting that pegged market value in the mid-single-digit billions.

Is WLFI really worth its multi-billion valuation?

Ownership and incentives sit at the core of the valuation debate. Reporting places the Trump family’s exposure near a quarter of the token supply through affiliated entities, with new wealth on paper following the trading switch.

The Crypto Investor Blueprint: A 5-Day Course On Bagholding, Insider Front-Runs, and Missing Alpha

Nice Your first lesson is on the way.

Please add [email protected] to your email whitelist.

Reuters further reports that DT Marks DEFI LLC, tied to the family, holds equity and revenue rights in World Liberty Financial and has already realized hundreds of millions of dollars from the venture’s activities. Those arrangements pertain to the operating company, not to WLFI token holders.

For readers tracking the project’s history, WLFI’s path from teaser to tradability is well documented. Prior reporting on whitelisting, funding totals, ecosystem tie-ups, and the July vote covers the raise and treasury activity, the Sui partnership, and the governance vote. The through line remains a governance token with voting rights alongside a custodial stablecoin.

The novelty question, therefore, resolves to design and delivery. A governance token that gains tradability by vote is common across crypto projects, and a custodial dollar stablecoin with qualified trust custody resembles existing large issuers.

The proposed Aave deployment could create a natural venue for USD1 and begin to connect WLFI governance to visible market parameters, but until a public instance is live, there is no documented cash flow, fee share, or protocol discount that accrues to WLFI holders.

The differentiators to date are distribution and brand, not technical design. That leaves little that is new.

True novelty would require governance that directly sets parameters across integrated markets, on-chain revenue routing with verifiable attestations, or contract-level controls that make votes binding on fees, risk limits, and emissions.

None of that is live.

As delivered, WLFI matches prior patterns, a voting token, a custodial stablecoin, and a planned market.

Until a public deployment shows votes changing production settings and producing measurable holder benefits, WLFI remains an aggregation of existing parts rather than a new token design.

As of Sept. 3, the token’s concrete holder utility is the ability to vote, the stablecoin exists, and the rest is still pending execution.

Put plainly, for a market now valuing WLFI in the mid-single digit billions, the project has shipped fairly basic DeFi products, while its advertised lending market has not launched in a way users can touch.

Mentioned in this article

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Elon Musk is raising new questions about Bitcoin’s long-term safety in the face of rapid advances in quantum computing. The Tesla and SpaceX CEO turned to his AI chatbot, Grok, to find out how likely it is that Bitcoin’s SHA-256 hashing algorithm could be cracked by powerful quantum machines.

His question came just as IBM revealed major plans for its next-generation quantum system called Blue Jay, which is expected to reach 2,000 global qubits by 2033.

Grok Predicts Low Risk, At Least For Now

According to Grok, the risk of Bitcoin’s encryption getting cracked by quantum computers is very low over the next five years. The AI estimates the chance remains close to zero during that period.

But when looking out to 2035, the probability goes up slightly—though it still stays under 10%. These numbers are based on expert assessments and current quantum capabilities.

Based on 2025 assessments from NIST, IBM, and expert surveys, the probability of quantum computing cracking SHA-256 (via Grover’s algorithm, reducing preimage search to ~2^128 operations) is near 0% in the next 5 years and <10% by 2035. It requires millions of error-corrected…

— Grok (@grok) August 2, 2025

Musk’s concerns are not coming out of nowhere. Companies like Google and Microsoft are developing their own quantum platforms—Willow and Majorana 1—which have sparked debate over whether cryptocurrencies like Bitcoin could one day be vulnerable to attacks from these ultra-powerful systems.

Right now, most quantum systems only have around 1,000 qubits. That’s far below the millions of error-corrected qubits scientists believe are necessary to break Bitcoin’s cryptographic defenses.

Grok added that stronger algorithms like SHA-3 or SHA-512 could be used as replacements if needed in the future.

Quantum Computers Vs. Blockchain

Meanwhile, according to a recent analysis by global auditing firm Deloitte, quantum computers could soon threaten the security of the Bitcoin blockchain, with around 25% of Bitcoins currently at risk of being stolen through quantum attacks.

Eventually, quantum computers might become powerful enough to break the entire transaction process, the analysts said. To prevent this, the Bitcoin network would need to adopt post-quantum cryptography—an emerging but complex solution currently being explored by cryptographers worldwide.

Image: The Quantum Insider

IBM’s Blue Jay Adds Pressure

IBM’s new system, Blue Jay, will have more than a billion gate operations—something much beyond the capabilities of today’s computers.

It’s part of the company’s larger effort to be at the forefront of quantum computing by the early 2030s. With other industry giants such as Google and Microsoft not far behind, the competition is heating up.

Tesla And SpaceX Both Hold Bitcoin

Musk’s curiosity isn’t just academic. Tesla currently owns 11,500 Bitcoins, worth about $1.3 billion at current prices. SpaceX also holds a sizable amount, reportedly around $850 million worth of BTC. Musk himself has confirmed that he holds Bitcoin in his personal portfolio.

With the extent of those holdings, it is no wonder that Musk would like to get ahead of potential threats. His tweet is seemingly relaxed, but it indicates increased awareness in the tech world about how quantum advances might affect the world of crypto and finance.

Featured image from ABB, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

About Author

Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

Share

Last updated: 

July 28, 2025

A group of Senate Democrats is demanding answers from the head of the Federal Housing Finance Agency (FHFA) over a controversial move to consider crypto assets in mortgage assessments.

In a letter sent Friday, five senators led by Jeff Merkley raised concerns about FHFA Director William Pulte’s recent directive instructing Fannie Mae and Freddie Mac to explore how crypto holdings could factor into mortgage risk evaluations without being converted into US dollars.

The letter, co-signed by Senators Elizabeth Warren, Chris Van Hollen, Mazie Hirono, and Bernie Sanders, calls for a detailed explanation by August 7.

“We urge you to fully assess the potential risks and benefits of your order and its implications for the U.S. housing market and financial system,” the senators wrote.

FHFA Rules Require Crypto to Be Converted Before Mortgage Use

The FHFA has overseen Fannie Mae and Freddie Mac since the 2008 financial crisis, when both institutions were placed under federal conservatorship.

Under current policy, crypto holdings must be liquidated into fiat before being considered in mortgage applications.

Pulte’s order, however, signals a possible shift. The senators say such a move “could introduce unnecessary risks to consumers and pose serious safety and soundness concerns for the U.S. housing and financial markets.”

They also warned that crypto’s volatility and history of liquidity issues could jeopardize borrowers’ ability to repay loans.

“Borrowers may not be able to exit a crypto position and convert to cash at a price that would allow them to buffer against risk of mortgage default,” they wrote.

Beyond market risk, the senators cited concerns over scams, cyberattacks, and theft, which they say leave homeowners “vulnerable to losing their crypto assets with little hope of recovery.”

The letter also raised potential ethical concerns. “We are concerned about how the FHFA, Fannie Mae, and Freddie Mac will prevent conflicts of interest,” the lawmakers stated, pointing to former President Donald Trump and his family’s involvement in multiple crypto ventures.

The Trumps reportedly have connections to trading platforms, stablecoins, mining businesses, memecoins, and NFTs.

The senators also took direct aim at Pulte, alleging a potential conflict due to his wife’s crypto holdings, which financial disclosures indicate could be worth up to $2 million.

They argue that Pulte’s dual role as FHFA Director and board chair of both Fannie Mae and Freddie Mac is problematic. “You have stacked those boards with industry allies,” the letter said.

Senators Slam FHFA for Lack of Clarity on Crypto Mortgage Order

The lawmakers criticized the lack of transparency surrounding the order, stating it “includes no information on how Fannie Mae and Freddie Mac would develop a proposal” or how the FHFA would assess risks or collect feedback.

They referenced the 2023 banking crisis, where crypto exposure contributed to the collapse of three banks, as a cautionary tale.

They also noted that in 2021, Fannie Mae concluded that crypto use for deposits, payments, or collateral was the “least appealing application” of blockchain.

The senators asked Pulte to provide internal communications related to the order, details on the approval process, and information on how he plans to address potential conflicts of interest.

US President Donald Trump didn’t answer a reporter’s question on whether he would divest from his family’s crypto ventures in order to ensure passage of key cryptocurrency legislation, saying only that if the US didn’t have crypto, China or other countries would.

“Many Democrats have said that they are not going to support crypto bills in Congress only because of you and your family’s personal crypto ventures,” a reporter said to Trump during press briefing at the White House on Friday.

Asked whether he would consider divesting from his crypto ventures to ease political pressure on digital asset bills on Congress, Trump responded:

“I became a fan of crypto, and to me, it’s an industry. I view it as an industry and I am president. And if we did not have it, China would, or somebody else would, but most likely China would love to, and we have dominated that industry.

We have created a very powerful industry, and that is much more important than anything that we invest in,” Trump said.

The growing concern among lawmakers over Trump’s crypto ties and the potential conflict of interests threaten to derail efforts to establish comprehensive regulations for the industry, a policy objective that has gradually gained bipartisan support since 2024.

Related: Ex-US top regulator warns of conflicts of interest as Senate weighs market structure

Democratic lawmakers move to address conflict of interest concerns

The Senate passed the GENIUS Stablecoin bill in a 68-30 vote on June 17, without proposed amendments from Democratic lawmakers seeking to limit a US president’s involvement in the crypto industry.

California Senator Adam Schiff introduced the Curbing Officials’ Income and Nondisclosure (COIN) Act on Monday. The bill would prohibit the president, his family and officials in the executive branch from issuing or endorsing any digital asset.

“Donald Trump and other senior administration officials have made a fortune off of crypto schemes. Today, I am introducing the COIN Act to put a stop to this corruption in plain sight,” Schiff wrote on X.

Magazine: Bitcoiners are ‘all in’ on Trump since Bitcoin ’24, but it’s getting risky

]]> https://earlybirdsinvest.com/trump-sidesteps-question-on-crypto-divesting-to-pass-key-bills/feed/ 0 44483 https://earlybirdsinvest.com/ethereum-faces-resistance-against-bitcoin-eth-btc-bullish-structure-in-question/ https://earlybirdsinvest.com/ethereum-faces-resistance-against-bitcoin-eth-btc-bullish-structure-in-question/#respond Sat, 17 May 2025 10:06:38 +0000 https://earlybirdsinvest.com/ethereum-faces-resistance-against-bitcoin-eth-btc-bullish-structure-in-question/

After a strong rally that pushed Ethereum to a local high of $2,730, the asset has retraced over 10%, now testing key support levels as the market cools off. The correction comes after days of heavy buying pressure and growing expectations of a broader altseason. However, the recent pullback has sparked debate among analysts and traders, with sentiment now split between those anticipating another leg up and others preparing for a deeper correction.

Related Reading

Some believe this pause is healthy and necessary before Ethereum resumes its uptrend. Others argue that ETH could retest lower zones, especially if Bitcoin remains range-bound. Top analyst Daan weighed in by highlighting the ETH/BTC pair, pointing out that Ethereum, after its big move up, is now facing resistance around the 0.026 BTC level.

With Ethereum still trading far below its all-time high and caught in a wide macro range, the coming days may prove decisive. Whether this is just a short-term cooldown or the start of a larger correction, Ethereum’s current levels will likely dictate the momentum heading into the next phase of the market.

Ethereum Holds Critical Support As ETH/BTC Pair Faces Key Resistance

Ethereum continues to show resilience despite recent volatility, maintaining its position above the $2,400 level. This zone now acts as crucial support, and bulls must defend it to preserve the broader bullish momentum. While price action has cooled slightly following its sharp run to $2,730, ETH remains one of the stronger performers in the market, holding up well amid increased uncertainty and speculative positioning.

Much of the current optimism hinges on Ethereum’s performance relative to Bitcoin. If ETH continues to outperform BTC, analysts believe it could trigger the long-awaited altseason — a market phase where altcoins significantly outperform Bitcoin. Daan shared insights on this dynamic, focusing on the ETH/BTC ratio, which has gained notable strength in recent sessions.

According to Daan, ETH has now run into resistance near the 0.026 level after a sharp rally. For bullish momentum to continue, ETH must hold above 0.0224. A break below this key support could trigger a slow bleed and potentially unwind the entire recent move. On the upside, a clear break above 0.026 would open the door to a move toward 0.03 and beyond.

In short, Ethereum’s short-term direction will likely be shaped by its ability to hold $2,400 and maintain strength against Bitcoin. If both conditions are met, the case for a sustained altcoin rally grows significantly stronger.

Related Reading

ETH Pulls Back Into Support After Failing To Break $2,700

Ethereum is currently trading at $2,485, following a sharp retracement from its recent local high near $2,730. The chart shows that ETH failed to hold above the 200-day simple moving average (SMA) at $2,701, which acted as a strong resistance zone. After days of sustained upward momentum, this rejection has pushed the price back toward the 200-day exponential moving average (EMA) around $2,438 — a key level that now serves as immediate support.

Volume has remained elevated during this move, suggesting active participation from both bulls and bears. Despite the rejection from the 200 SMA, Ethereum is still holding well above its breakout zone from early May, where the price surged from under $2,000. If bulls can defend the EMA and keep price above $2,400, this could form a higher low and set the stage for another attempt at reclaiming the $2,700–$2,800 area.

Related Reading

However, if ETH loses the $2,400 level, momentum could shift in favor of the bears, potentially triggering a larger correction. For now, Ethereum remains in a consolidation phase within a broader bullish structure. The next few daily closes will be critical to confirm if the pullback is healthy or a signal of deeper weakness.

Featured image from Dall-E, chart from TradingView

Recently I received funds that were paid in USDC coins by the Crypto platform and recommended by a Tokenpocket wallet. After the withdrawal was confirmed, I tried to transfer the funds to another crypto wallet, but I got an error. I contacted customer service and they told me I had to pay $1,500 to a third party to activate the wallet. I paid the amount, but when I tried again I got the same error. I reached out once more and said this time the fee had increased to $1,850. I paid for it too. When attempting to transfer another, the fee was raised again. This time it’s $2,500. At that point, I chose not to pay any more, suspecting that it might be a scam. Does anyone know what this error is and if there is a way to solve it? Any help would be appreciated. There’s no way to paste the error, so please email me. Your email address is (email protected)

Germany is storing over $109 billion worth of gold in the New York Federal Reserve’s vaults, but some officials in the country are beginning to call for less trust and more verification.

Michael Jäger of the European Taxpayers’ Association – a federation of 29 national taxpayers associations throughout Europe –  is urging Germany to immediately obtain its gold from the USA amid tention between the White House and the US, Bild reports.

Says Jäger,

“The Bundesbank and the German government must demonstrate foresight in this phase of global power shifts and immediately retrieve German gold from the USA. Especially at a time when Berlin and Brussels are discussing immense new debt, we need immediate access to all gold reserves in an emergency.”

Jäger says that at a minimum, Germany should at least be able to “physically inspect” the gold bars.

European Member of Parliament Markus Ferber echoes Jäger’s sentiments, telling Bild:

“I demand regular checks of Germany’s gold reserves. Official representatives of the Bundesbank must personally count the bars and document their results.”

Meanwhile, lawmaker Marco Wanderwitz says Germany’s CDU (Christian Democratic Union) is advocating that Germany needs to “either check regularly or retrieve the gold.”

The Germans’ calls for inspecting the gold reserves comes as Elon Musk, tech billionaire and close aid of President Trump, is suggesting that an audit of Fort Knox in Kentucky be “livestreamed.”

The last time Fort Knox was audited was in September of 1974.

In a statement to Bild, a spokseperson for Germany’s Bundesbank quoted and reiterated a Feburary statement from the bank’s President, Joachim Nagel.

“We have (…) absolutely no doubt that with the Fed in New York we have a trustworthy, reliable partner in the storage of our gold reserves.”

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney