The Web3 investment fund Aqua 1, based in the UAE, has announced a strategic investment of $100 million in World Liberty Financial (WLFI), a DeFi project backed by the family of former U.S. President Donald Trump. This investment makes Aqua 1 the largest individual investor in the project, surpassing Justin Sun, the founder of TRON and an advisor to WLFI, who invested $75 million.
Strategic Partnership to Promote Global Blockchain
Aqua 1’s investment is not just about funding; it marks a comprehensive partnership aimed at shaping the future of digital finance. According to Dave Lee, a representative of Aqua 1, the partnership with WLFI will focus on key objectives:
- Developing Stablecoin USD1: Supporting the integration of blockchain into commercial payment gateways and corporate treasury management systems, opening up practical application potential in the digital economy.
- Promoting Tokenization of Traditional Assets (RWA): Both parties will incubate and develop promising Web3 projects, focusing on digitizing traditional assets.
- Expanding Global Markets: WLFI, with the support of Aqua 1, aims to increase its influence in South America, Europe, Asia, and emerging markets.
- Enhancing DeFi Standards: Aqua 1 is committed to partnering with WLFI to ensure transparency and efficiency in capital management, contributing to building trust in the decentralized finance sector.
As part of the collaboration, Aqua 1 and WLFI announced plans to launch Aqua Fund, a new investment fund based in the UAE, aimed at promoting digital transformation in the Middle East through blockchain technology and AI integration. This fund will collaborate with a secondary exchange in the Abu Dhabi Global Market (ADGM) to provide liquidity while serving as a bridge to attract capital, talent, and technology to the region.
World Liberty Financial is entering a new phase as it prepares to launch the WLFI token for trading, after a period where users could only hold the token for governance participation. According to ICODrops, the project successfully raised $550 million in a public sale, selling 25 billion WLFI out of a total supply of 100 billion tokens. WLFI is also developing a mobile app that integrates features such as token management, airdrop receipts, stablecoin USD1 transactions, and community governance participation, promising a user-friendly experience.
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Concerns Over Conflicts of Interest and Divestment
However, the project is not without controversy. On-chain data shows that the wallet aqua1.eth received 800 million WLFI just two weeks before the token was officially traded, raising questions about potential insider trading. The $100 million transaction by Aqua 1 occurred shortly after WLFI announced its token listing plans, further prompting community inquiries about transparency.
Notably, the MGX fund—backed by the Abu Dhabi sovereign wealth fund—used stablecoin USD1 to invest $2 billion in Binance last May. The involvement of organizations linked to foreign governments in a crypto project associated with the Trump family raises concerns about potential policy manipulation. Nevertheless, both the U.S. government and WLFI have denied any allegations of conflict of interest.
Additionally, the Trump family is reportedly quietly divesting from WLFI. According to Forbes, the company DT Marks DEFI LLC, controlled by Trump, has reduced its ownership from 60% to 40%, reaping about $190 million, of which Trump may have pocketed $135 million. Reports to the U.S. Office of Government Ethics also indicate a profit of $57 million from Trump’s sale of WLFI tokens.
