Risk Discipline in a Changing Landscape
The World Liberty Financial risk outlook has shifted materially in recent weeks, prompting a reassessment of position sizing and exposure. Success in investing requires discipline and caution when underlying conditions change. Our original outlook for World Liberty Financial (WLFI) positioned the asset as a defensive hedge during the market turbulence of late 2025 and early 2026.
During that period, the crypto market experienced significant liquidation events totaling billions of dollars, reducing global market capitalization by trillions and sending Bitcoin into a sharp retracement. The initial investment thesis centered on WLFI’s ownership base. Because token holders were largely outside traditional leveraged trading circles, we believed at the time that the ownership structure reduced the likelihood of forced selling during periods of extreme volatility to meet margin calls or unwind leveraged positions.
The UAE Transaction
On Feb. 6, reports emerged of a $500 million investment from Aryam Investment 1, an entity reportedly tied to the UAE royal family. According to public reporting, the firm secured a 49% stake in the project shortly before the January 2026 presidential inauguration.
Major financial outlets have reported that the transaction involved an organization connected to Sheikh Tahnoon bin Zayed Al Nahyan and included payments to entities linked to the Trump family. These developments materially change the project’s profile by introducing geopolitical and political considerations that were not part of Sarson Funds’ initial evaluation.
Technical Performance Breakdown
By mid-February, WLFI’s technical structure had weakened. The token declined more than 26% in one week and has not reclaimed its January high near $0.19. Price is now testing key support levels as broader market selling pressure continues to weigh on the asset.
This deterioration in price structure reflects a shift in market momentum and reinforces the change in risk profile.
Shifting Thesis Amid Congressional Inquiry
The introduction of federal oversight adds another layer of risk to the evolving situation. On Feb. 7, Rep. Ro Khanna announced a formal inquiry into the UAE transaction, citing national security and potential ethical concerns. The inquiry has reportedly included requests for internal records from the project’s leadership.
Regardless of outcome, congressional scrutiny introduces regulatory uncertainty. That uncertainty alters the risk environment from what existed at the time of our original position and warrants a reassessment of exposure.
Closing the Position
In light of these developments, Sarson Funds is closing its position in WLFI. This decision reflects a change in external conditions rather than a definitive judgment about the project’s long-term viability.
We will remain on the sidelines until there is greater clarity surrounding the regulatory and political environment. In the interim, capital is being directed toward assets with more transparent value drivers, including Helium.
Helium operates within the decentralized physical infrastructure, or DePIN, sector. DePIN refers to blockchain-based networks that incentivize participants to build and maintain real-world infrastructure such as wireless connectivity. Helium continues to demonstrate utility-driven revenue and growth in enterprise and hotspot participation.
Ongoing Observation
While we are closing this position for now, Sarson Funds will continue to monitor World Liberty Financial. The project’s longer-term trajectory may depend on its ability to align with government-led digital initiatives, including potential involvement in strategic digital asset reserves.
Those prospects are now more closely tied to political and regulatory developments that remain fluid. As conditions evolve, we will reassess accordingly.
Disclosures: This article is for informational purposes only and should not be considered financial, legal, tax, or investment advice. It provides general information on cryptocurrency without accounting for individual circumstances. Sarson Funds, Inc. does not offer legal, tax, or accounting advice. Readers should consult qualified professionals before making any financial decisions. Cryptocurrency investments are volatile and carry significant risk, including potential loss of principal. Past performance is not indicative of future results. The views expressed are those of the author and do not necessarily reflect those of Sarson Funds, Inc. By using this information, you agree that Sarson Funds, Inc. is not liable for any losses or damages resulting from its use.
