LINK, AAVE Rocket 30% as Trump’s World Liberty Financial Buys $2M Tokens

LINK, AAVE Rocket 30% as Trump’s World Liberty Financial Buys $2M Tokens

The AAVE token purchases came as a proposal to float a World Liberty Financial instance on Aave met quorum.

Updated Dec 12, 2024, 6:52 a.m. UTCPublished Dec 12, 2024, 6:07 a.m. UTC

Crypto wallets connected to the Trump family-supported World Liberty Financial project purchased millions of dollars worth of various major tokens early Thursday, causing their prices to rocket.

World Liberty Financial is a unified platform where users can borrow and lend cryptocurrencies, create liquidity pools and transact with stablecoins. WLFI serves as a governance token for the platform.

President-elect Donald Trump is “chief crypto advocate” of the project. Two of his sons, Eric and Donald Trump Jr., are “web3 ambassadors,” while Barron holds the title of “DeFi visionary.”

Data shows the project purchased $10 million in ether (ETH), and $1 million each in aave (AAVE) and Chainlink’s LINK tokens early Thursday. ETH prices surged 7% in Asian morning hours after the purchases, while AAVE and LINK prices surged 30% on the bullish sentiment.

The wallet has additionally spent $30 million to buy 8,105 ETH at an average price of $3,700 in the past 12 days, per Spot on Chain.

Well-followed crypto trader @TheFlowHorse speculated that the tokens were likely part of bigger plans in the coming months: “Trump’s account is buying the crypto pairs that are set to benefit heavily from his plans.”

World Liberty Financial uses data provider Chainlink’s services for better integrating with the wider crypto ecosystem. Chainlink supports the platform by providing crucial pricing data and cross-chain interoperability infrastructure, per a November report.

“With Trump’s World Liberty Financial DeFi platform adopting the Chainlink standard for data and cross-chain connectivity earlier this year, the recent onchain purchase of $1M in LINK only further strengthens the long-term alignment between the two ecosystems,” Chainlink community liasion Zach Rynes said in a Telegram message to CoinDesk.

“As the new administration brings regulatory clarity for crypto in the US, Chainlink and WLFi are well positioned to scale DeFi to the masses in a way never seen before,” Rynes added.

Last week, the platform’s DAO proposed deploying a World Liberty Financial Aave v3 instance. This instance will be managed through external risk managers, built on the existing Aave v3 infrastructure, and released on Ethereum.

An instance refers to a specific deployment or version of a protocol, application, or service on a blockchain network.

The vote has already met quorum ahead of its end date on Dec. 13, governance data shows, and key objectives include attracting first-time users to the platform as well as sharing a piece of revenues with those who provide liquidity.