Altcoin Team Plans to Invest $5 Million in Trump's DeFi Project! - Coin Bulletin

A member contributing to the Frax Finance protocol has submitted a management proposal suggesting a $5 million investment in Frax's World Liberty Financial (WLFI) token.

WLFI stands out as one of the decentralized finance (DeFi) projects associated with US President Donald Trump. The proposal highlights that Frax could leverage this investment to benefit from the Trump administration's support for US-based DeFi projects.

The Frax Finance team stated, 'Given the Trump administration's commitment to US-based DeFi projects, it is important for Frax to position itself as one of the leaders in this movement.' Depending on the success of the project, Frax also proposed an additional investment of $5 million.

Frax Finance, the creator of the decentralized Frax stablecoin and Frax Ether products with a total locked value (TVL) of $445 million. The proposal will be put to a vote by the holders of Frax Shares (FXS), the native governance token of Frax Finance.

WLFI's activities are shaped in line with Trump's vision of making the USA a global leader in the cryptocurrency field. On the day Trump took office, WLFI made a $112.8 million cryptocurrency asset purchase. This purchase included tokens such as ether, wrapped bitcoin, Aave, LINK, TRX, and ENA.

However, this investment proposal in the Frax community has also received criticism. A community member pointed out the potential risks of the project, saying, 'Investing $5 million in an unproven project at a fully diluted valuation of $5 billion is excessive and illogical.'

This investment in Frax Finance is seen not only as a strategy to join the WLFI ecosystem, but also as an opportunity to take a leading role in the future growth of US-based DeFi projects. However, the potential risks of the investment are causing serious discussions within the community.