Market Watch

World Liberty Financial Airdrops USD1 Tokens to WLFI Token Holders

World Liberty Financial, the crypto project backed by U.S. President Donald Trump, apparently distributed USD1 stablecoins to wallets that participated in the sale of the project’s native token WLFI, blockchain analytics platforms Lookonchain and SlowMist reported. Late Tuesday night, a wallet identified as associated with the crypto project distributed 47 USD1 tokens to each WLFI-holding wallet in a bulk transfer, data from Etherscan shows. More than 85,000 participants in the WLFI token sales underwent know-your-customer process, the project previously said in March.

While World Liberty did not officially announce or confirm the USD1 airdrop, the project previously proposed distributing a “small amount” of USD1 to all WLFI holders.  Its proposal stated that the airdrop would test the onchain airdrop function via Ethereum mainnet and promote the recently launched stablecoin, while expressing gratitude to supporters of the project.

Last month, World Liberty opened a snapshot vote for the airdrop proposal, which received an overwhelming support of 99.96%. Launched in March, World Liberty’s USD1 stablecoin is said to be backed entirely by short-term U.S. government treasury, U.S. dollar deposits, and other cash equivalents. It was launched amid significant shifts in the regulatory landscape around stablecoins, as U.S. lawmakers are currently pushing the GENIUS Act, which mandates safety and transparency for stablecoin issuers.

Under Trump’s open support, dollar-backed stablecoins have been booming with institutional and retail interest, recently crossing $250 billion in total market capitalization.  However, Trump and his family’s involvement in World Liberty also brought along concerns of possible conflicts of interest. Trump and his three sons have ambassadorial or advocate roles for the project, according to its whitepaper.

Last month, attorneys for World Liberty pushed back against Senate Democrat Richard Blumenthal’s claim that the Trump family made “substantial” financial benefits from WLFI, saying such claim was “fundamentally flawed.” Another concern surrounding World Liberty’s USD1 is its centralization. According to Dune Analytics data, two wallets hold 84.4% of its total supply, with a third wallet holding another 9.5% of the token supply. It is unclear whether these wallets are controlled by World Liberty Financial, major investors like Justin Sun, or custodians like BitGo.

Terron Gold

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