Sui, a layer-1 blockchain built of Mysten Labs based in San Francisco, announced on March 6 that it cooperated with World Liberty Financial (WLFI). As part of the deal, Sui’s native token, Sui (Sui), will be included in the “Macro Strategy” strategic token reserve of the WLFI, and both creatures will explore the opportunities for the development of the product.
WLFI, a decentralized financial protocol (DEFI), has drawn controversy over its relationship with the family of US President Donald Trump. While the WLFI insists that none of Trump’s family members hold an officer or position of the director, Eric Trump serves as one of the board managers.
In addition, despite marketing itself as a Defi Innovator, the WLFI relies on AAVE V3 for lending and borrowing the operations, leading to questions about its originality and freedom.
Sui’s integration with the WLFI reserve was not completely unexpected, since Eric Trump, the President’s son, expressed the public in support for and personally holding cryptocurrency.
The network will come to a successful 2024 campaign, with the market capitalization of the market over 153% in the last quarter, According to To Messari. Defi’s activity in SUI also increased, along with the average decentralized exchange (DEX) volume of skyrocketing 1,591% year-to-year. It is currently ranking the top 20 cryptocurrencies and a top-10 blockchain in decentralized financial (DEFI) by the total amount locked (TVL), standing at $ 1.283 billion, According to In Defillama.
The SUI community and its development team celebrate the cooperation. However, industry participants have expressed concerns over the legitimacy and model of the WLFI business.
Related: Reaction to Trump’s Crypto Reserve: ‘Short-Term Optimism, Long-Term caution’
The industry has raised WLFI concerns as a reaction to the SUI cooperation
The criticism of the WLFI is centered on the doubt about its value proposal. Many community members ask if it brings anything new to Defi or whether it is repacking existing AAVE services under another brand.
Mike Dudas, in charge of the Crypto Venture Fund 6MV partner and a self-recognized WLFI investor, has removed the project as a “pay-to-play” procedure.
Source: Mike doubted
Andre Cronje, co-founder of Sonic Labs and a major figure in the defi as the creator of the desiring.Finance, level even more difficult to criticize. He features high fees and dubious strategies to re -investigating the amount from crypto companies rather than providing a real utility.
Source: Other Cronje
The “Alan,” Chief Marketing Officer of Axia8 Ventures, shouted these concerns, Says:
“The projects bend to the knee and pray to the gods in the hope that by playing this game, their token can, may, be included in a reserve. All of the above to do what? To pump the price of the token.”
WLFI did not discuss these criticism. The cointelegraph reached for the comment but has not received a response as a publication.
SUI market reaction and strategic implications
Following the cooperation announcement, Sui’s price moved 12%, briefly approaching the $ 3 mark before repairing around $ 2.85, representing a 5.7% gain from pre-announcements.
The Sui Token dropped the news in collaboration before sinking, then rebounds again. Source: Coingecko
Zak Folkman, co-founder of WLFI, said in the announcement that Sui was selected for the “born” American “change and scalability. Some investors viewed it as a sign that the next WLFI transfer was to target other US-based projects, especially those with Eric Trump’s implicit endorses.
In an interview in December, Eric Trump announced that he was holding the SUI, which further accuses the speculation about its desire within the WLFI ecosystem.
Source: Route 2 fi
Folkman added:
“Our plans are provided to support foundational defi assets in the coming months, working with Sui is a clear decision.”
The SUI’s object-centric data model and transaction implementation make it a glamorous infrastructure for DEFI applications. Unlike traditional account-based models, SUI structures assets as independent objects, enabling faster transfer of ownership and instant updates without the need for full network consent. This design improves liquidity movement, collateral management and efficiency of intelligent contract with the defi.
The Mysten Labs CEO promotes Sui’s “superpower” following WLFI cooperation. Source: Evan Cheng
WLFI’s handling and imagination -haka of ETF
Onchain data suggests WLFI holds around $ 80 million in crypto assets, based on wallets monitored by Arkham Intelligence. However, a significant portion of its holdings has been moved to Coinbase Prime, which makes it difficult to monitor its entire distribution of its ownership.
Early February Movement of WLFI properties in Coinbase Prime and Cow protocol. Source: Arkham Intelligence
On March 6, the analyst of Onchain Embercn Attached that WLFI holds a total of $ 336 million in crypto, including Ether (Eth), Wrapped bitcoin (Wbtc), Tron (Trx), Chainlink (Link), Ghost (Ghost), Ethena (This one), Move, ondo (Ondo) and six (Be). The analyst also noted that the firm recently added $ 21.5 million to WBTC, ETH and advanced ahead of White House Crypto Summit on March 7.
Related: US Bitcoin Reserve Marks ‘Real Step’ towards Global Financial Integration
“Since these possessions were transferred to WLFI’s Coinbase Prime Coinbase Prime a few hours ago, there was no way to know if they were sold,” Embercn wrote in a translated post, adding that WLFI’s claims were not liquid.
If WLFI is still holding these possession, the current paper loss stands for approximately $ 88 million. The biggest percentage loss was in the ETA (-63%), while the biggest financial loss was at ETH (-$ 67.35 million, down 31%), Embercn added.
Meanwhile, Sui indicated the growth of its existence in Washington, DC. On February 4, Mysten Labs co-founder Adeniyi Abiodun revealed The project is engaged in the “Kapana -Excellent communication” that can expand the ecosystem. A month later, Abiodun suggested that the SUI may be considered for ETF integration. On March 6, a delaware filing indicated that the Canary Capital could explore an ETF for the SUI, even though the past fake ETF filing has been cautious in the premature speculation.
Source: Adhenii Abimany
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