WLFI has dropped, can ALT5 still moon?

林晚晚

2025-09-02 14:02

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Trump: Trimming Cryptocurrency with One Hand, Trimming US Stocks with the Other.

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

Currently, from a market cap perspective, ALT5, as the "WLFI Reserve Stock," saw a significant drop in both WLFI's coin price and the US stock market ALT5 pre-market at one point. The Trump family's grasp of the cryptocurrency narrative, behind-the-scenes maneuvers, once again conducted a market harvest.

The following is an in-depth analysis of ALT5 Coin Stock Company, originally published by BlockBeats on August 20th. Enjoy the read.

In August, within Nasdaq's announcement pile, there was a seemingly ordinary financing that exploded like a hidden bomb: ALT5 Sigma issued up to 200 million common shares at $7.50 per share (about 10 billion RMB), exchanged with WLFI tokens, and brought Trump's son, Eric Trump, onto the board.

Overnight, this financial technology company ALT5, with an annual revenue of only $20 million, transformed into the "Trump family's listed treasure trove." ALT5 not only raised funds but also boldly integrated the Trump family's token WLFI and the USD1 stablecoin, which carries a strong political stamp, into the US securities system.

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

This company was established two months before the US presidential election. In just a few months, through the USD1 stablecoin, WLFI has brought hundreds of millions of dollars in revenue to the family business. In other words, ALT5 has not just accessed a stablecoin but a complete set of political financial weapons.

The question is—Is ALT5 really raising funds, or selling a ticket to wealth with "political dividends" written on it?

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

The shareholder list of a company often reveals more than its financial report.

ALT5's shareholder structure is almost like a power puzzle: offshore capital, Wall Street funds, and the political token faction are interwoven, making this company appear to be both a financial technology enterprise and a political financial experiment.

What truly gives ALT5 its explosive nature is this type of shareholder: the political token faction. The key figures are two: Zach Witkoff, Eric Trump.

Eric Trump needs no introduction—son of the President of the United States, Donald Trump, he currently oversees the family's cryptocurrency ventures and sits on the ALT5 board.

Of particular note is Zach Witkoff—co-founder of the WLFI stablecoin and also serving as Chairman of ALT5.

Looking at Zach Witkoff's background alone, it's clear he is no ordinary entrepreneur. As the son of renowned New York real estate developer Steven Witkoff, currently a U.S. Special Envoy for Middle East Affairs, Zach comes from a family with decades of experience in the Manhattan real estate scene. The Witkoff family has handled numerous iconic buildings, and Zach's father, Steven, has deep connections in the New York financial and political spheres.

The Trump family's roots are in real estate, and Steven Witkoff has longstanding ties with the Trump father and son in the New York real estate world.

The relationship between Zach and the Trump family can be summarized in one sentence: intertwined real estate relationships with political entanglement. Therefore, Zach and Eric's relationship is not just about "collaboration," but rather a familial-style political-financial alliance.

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

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

Now, let's talk about one of ALT5's major shareholders, an offshore company registered in the Bahamas—Clover Crest Bahamas Ltd., holding approximately 11% of shares. The Bahamas is well-known as a tax haven where many wealthy individuals and companies choose to register their businesses. The reason is simple: they can benefit from lenient tax policies and avoid excessive regulatory scrutiny.

In simple terms, Clover Crest is like a secret conduit for the Trump family—it can discreetly funnel money into ALT5 and also isolate risk when necessary.

Another shareholder force comes from Wall Street fund companies, such as the well-known Vanguard Group. Retail investors worldwide may indirectly hold stakes in these funds as they operate large-scale index funds.

Vanguard's stake in ALT5 is not high, and it seems to be a passive allocation. However, the issue lies in the fact that when the public sees a name like "Vanguard Group" appear on the shareholder list, intuitively, they would consider this company to be "legitimate" and "reliable." This is what is known as Legitimacy Endorsement.

These three forces each have different logics: Offshore Funders provide a covert funding channel to ensure money flows in; Wall Street Funds provide a facade and legitimacy to make the company appear "compliant and legitimate"; Political Tokenists provide narrative and strategic direction, pushing ALT5 onto the global stablecoin stage.

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

Superficially, it is a rule-abiding financial technology company; in reality, it is being treated as a stablecoin version of a "Trojan Horse," quietly carrying the ambitions of politics and capital under a compliant exterior.

II. The FinTech Facade—Where Does Compliance Lead?

On the books, ALT5 is as normal a FinTech company as can be. It holds a complete set of licenses, offering services such as payment gateways, OTC trading, custody, and white-label exchanges, with an annual revenue of around $20 million and a gross margin of nearly 50%, making it a top performer in the crypto payment industry. Compliant, transparent, with clean data, it even appears "cleaner" than many traditional payment companies.

However, what truly propelled ALT5 from a niche FinTech tool to a global focus was the $1.5 billion financing in August 2025. Overnight, it went from being just an API company to being thrust into a new position—a key vault for the Trump Stablecoin WLFI on the Nasdaq.

This means ALT5 is no longer just a technology vendor but has become a crucial node for stablecoin globalization.

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

First is the protection of surface-level identity. If the WLFI stablecoin wants to directly enter various countries' payment networks, it is almost certain to run into central bank and regulatory barriers. However, ALT5 has ready-made financial technology licenses, allowing it to take the lead as a "payment API service provider." Regulators see a compliant FinTech company, not a politically charged stablecoin.

Second is the secret channel for cross-border settlements. ALT5 Pay's API allows merchants to accept BTC, USDT, and other cryptocurrencies, automatically converting them to dollars or euros in the background. By embedding WLFI/USD1 in this process, merchants and users may not even realize they are using a stablecoin endorsed by the Trump family. On the surface, it is "payment technology," but in reality, it accomplishes the penetration of stablecoins.

Lastly, there is the natural grafting of the global network. ALT5 has bridged the Lightning Network and stablecoin payment systems, which is far more efficient than relying on the SWIFT-based traditional cross-border payments. For many emerging markets with a strong demand for the U.S. dollar but lacking a direct channel to Wall Street, what ALT5 provides is an invisible express lane. Through it, WLFI can quickly "descend" and enter the global trading scene with minimal resistance.

Thus, the significance of the $1.5 billion financing becomes clear: it is not merely an expansion of funds, but more like a strategic deployment to pave a global payment channel for WLFI.

ALT5 can naturally continue to assure regulators, "We are just a payment company offering a compliant API." 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 "fintech facade." Externally, it is clean, transparent, and professional, a textbook FinTech; internally, though, it is being pushed to a strategic height, becoming an indispensable part of the stablecoin globalization puzzle.

Perhaps this is precisely why WLFI was able to quickly transition from a political concept to a real financial instrument: it found a "legal backdoor" like ALT5.

When the compliant facade is thick enough, stablecoins can quietly flow into merchants' and users' daily transactions, and by the time regulation truly catches on, that door may have already been wide open.