Afraid to buy a token, is there still a chance for WLFI Coin Stock?

林晚晚

2025-09-01 17:17

Read this article in 14 Minutes

Trump: Pump the Coin, Dump the Stock.

Editor's Note: On September 1st, World Liberty Financial (WLFI) saw the token's initial claim and trading. However, as early as August, WLFI had already packaged the token as equity and listed on the US stock market through a shell merger.

Currently, from a market value perspective, ALT5 as the "WLFI Reserve Stock" is severely undervalued, but will ALT5's stock price be linked to the WLFI token price? And what kind of market trend will the current long and short disparity in WLFI's token price bring?

The author is still observing these questions. The following is an in-depth analysis of the ALT5 Equity Token company, originally published by BlockBeats on August 20th. Enjoy the read.

In August, in the pile of Nasdaq announcements, there was a seemingly ordinary financing, but it exploded like a hidden mine: ALT5 Sigma issued up to 2 billion common shares at $7.50 per share (about 10 billion RMB), exchanged for WLFI tokens, and brought President Trump's son Eric Trump into the board of directors overnight.

Overnight, this financial technology company ALT5, with annual revenue of only $20 million, transformed into the "Trump Family's Publicly Listed Treasury." ALT5 not only in financing, but also in pushing the Trump family's token WLFI and the issued USD1 stablecoin with a strong political stamp into the US securities system.

WLFI (World Liberty Financial) is not just a simple startup but a "political mint" built by the Trump family themselves.

This company was founded in the two months before the US presidential election. In just a few months, WLFI has brought in hundreds of millions of dollars in revenue for the family business through the USD1 stablecoin. In other words, ALT5 is not just accessing a stablecoin; it is a whole set of political financial weapons.

The question is—Is ALT5 really fundraising, or selling a ticket with the words "political dividend"?

I. ALT5's Hidden Lineage: The Connection of Three Forces

The shareholder list of a company often explains more than the financial report.

ALT5's shareholder structure is almost like a power puzzle: offshore capital, Wall Street funds, and political tokenists are intertwined, making this company look like both a fintech enterprise and a political financial experiment.

What truly gives ALT5 its explosive nature are shareholders of this kind: the Political Tokenists. The two key figures are Zach Witkoff and Eric Trump.

Eric Trump needs little introduction — the son of U.S. President Trump, he currently oversees the family's cryptocurrency ventures and sits directly on the ALT5 board.

Now, let's delve into Zach Witkoff — co-founder of the WLFI stablecoin and currently serving as Chairman of ALT5.

Merely looking at Zach Witkoff's background indicates he is no ordinary entrepreneur. He is the son of the renowned New York real estate developer Steven Witkoff, who currently serves as the U.S. Special Envoy for Middle East Affairs. The Witkoff family has accumulated wealth in the Manhattan real estate scene for decades, holding ownership of several iconic buildings, while Steven has deep connections in both New York's financial and political spheres.

The Trump family's roots are in real estate, and Steven Witkoff has had a longstanding relationship with the Trumps in the New York real estate scene.

The relationship between Zach and the Trump family can be summed up in one sentence: real estate ties plus political entanglement. Therefore, the relationship between Zach and Eric is not just about "collaboration" but rather represents a familial-style political-financial alliance.

If Eric Trump puts the family's political resources on the table, then Zach Witkoff is the individual executing the financial aspects for the Trump family. He is a key figure in this intertwining of politics and finance.

Hence, the presence of these two individuals signifies that ALT5's development trajectory will become increasingly politicized. It is not merely about pursuing commercial expansion but also about preparing financial instruments for the U.S. political cycles of 2025–2028. To some extent, it is part of the Trump family's "financial arsenal."

Let's now take a look at one of ALT5's major shareholders, an offshore company registered in the Bahamas — Clover Crest Bahamas Ltd., holding approximately 11% of the shares. The Bahamas is a well-known tax haven where many affluent individuals and businesses register their companies. The reasons are simple: favorable tax policies and avoidance of excessive regulatory scrutiny.

In simpler terms, Clover Crest functions as a covert channel for the Trump family, enabling the discreet transfer of funds to ALT5 and providing risk isolation when needed.

Another influential shareholder force comes from Wall Street's fund companies, such as the well-known Vanguard. Individual retail investors worldwide may indirectly hold stakes in these types of funds because they operate large-scale index funds.

Vanguard's stake in ALT5 is not very high, and it appears to be a passive allocation. However, the issue is that when the public sees a name like "Vanguard" appear on the shareholder list, intuitively, they view this company as "legitimate" and "trustworthy." This is what is known as legitimizing endorsement.

These three forces each have different logics: Offshore wealth provides a covert funding channel to ensure money can come in; Wall Street funding provides a facade and legitimacy to make the company appear "compliant and reputable"; and political tokenists provide narrative and strategic direction, propelling ALT5 onto the global stablecoin stage.

When combined, these three forces make ALT5 both clean and dangerous.

Superficially, it is a rule-abiding fintech company; in reality, it is being used as a stablecoin version of a "Trojan Horse," quietly carrying the ambitions of politics and capital under the cloak of compliance.

II. The Façade of FinTech—Where Does Compliance Lead Behind Closed Doors?

On the books, ALT5 is as normal as can be for a fintech company. It holds a full set of licenses, offers services such as payment gateways, OTC trading, custody, and white-label exchanges, with annual revenue of around $20 million, a gross margin close to 50%, and is considered a top performer in the crypto payment industry. Compliant, transparent, with beautiful data, it even appears "cleaner" than many traditional payment companies.

However, what truly propelled ALT5 from a niche tool-type FinTech to a global focus was the $1.5 billion financing in August 2025. Overnight, it transformed from merely an API company to being thrust into an entirely new position—becoming the "Nasdaq Fort Knox" of the Trump stablecoin WLFI.

This means that ALT5 is no longer just a technology vendor but has become a key node in the globalization of stablecoins.

Why is it called a "backdoor"? The reason is actually quite simple.

First is the protection of surface-level identity. If the WLFI stablecoin wants to enter various national payment networks directly, it will almost certainly run into central bank and regulatory barriers. However, ALT5 has a ready-made fintech license and can take the lead as a "payment API service provider." Regulatory agencies see a compliant FinTech company rather than a highly politically charged stablecoin.

Next is the covert channel for cross-border settlement. ALT5 Pay's API allows merchants to receive BTC, USDT, and other cryptocurrencies, which are then automatically converted to US dollars or euros in the background. By embedding WLFI/USD1, merchants and users may not even realize that they are using a stablecoin endorsed by the Trump family. While on the surface it appears to be "payment technology," in reality, it facilitates the penetration of stablecoins.

Lastly, there is the natural integration into the global network. ALT5 has already connected the Lightning Network and the stablecoin payment system, providing much higher efficiency than traditional cross-border payments relying on SWIFT. For many emerging markets with a strong demand for the dollar but lacking a direct channel to Wall Street, ALT5 offers an invisible express lane. Through it, WLFI can rapidly "sink" with minimal resistance into the global trading scene.

In this way, the significance of the $1.5 billion funding becomes clear: it is not merely an expansion of funds but more like a strategic deployment to establish a global payment pipeline for WLFI.

Naturally, ALT5 can continue to assure regulators, "We are just a payment company providing compliant APIs." However, in the shadows, its interface may be becoming the track for stablecoins to bypass the traditional financial system.

This dual narrative makes ALT5 a typical "financial technology facade." Externally, it is clean, transparent, and professional, a textbook FinTech; internally, however, it is being elevated to a strategic height, becoming an indispensable piece in the puzzle of stablecoin globalization.

Perhaps this is precisely the key to WLFI's rapid transformation from a political concept to a real financial tool: it has found "legitimate backdoors" like ALT5.

When the cloak of compliance is thick enough, stablecoins can quietly flow into merchants' and users' daily transactions, and by the time regulators truly react, that door may have already been wide open.