WLFI's large purchase of EOS: a revival of Web3 banks or a reflection of speculation?

Written by: Luke, Mars Finance

On May 16, 2025, the blockchain data monitoring platform Onchain Lens revealed a significant piece of news: the decentralized finance (DeFi) project World Liberty Financial (WLFI), backed by the Trump family, purchased 3.63 million EOS for 3 million USDT (approximately 3 million USD) at a unit price of 0.825 dollars just 10 minutes ago. Some exclaimed, "The Trump family is making moves again, is EOS about to soar?" Others scoffed, "It's just a new round of hype."

This transaction is not an isolated event. Just over a month ago, on April 1st, the crypto market was in despair, with altcoins generally plummeting by 20%-50%. However, EOS defied the trend, rising over 30% under its new identity as "Web3 Bank" Vaulta, with prices breaking through $0.8. Now, the high-profile entry of WLFI adds fuel to the narrative of EOS's recovery. What exactly has allowed this "old horse" of blockchain to repeatedly stir up waves in the trough? Why did WLFI choose EOS as an investment target? Let us trace the ups and downs of EOS, analyze the transformation logic of Vaulta, and explore the deeper meaning behind this $3 million transaction.

The Twisted Seven Years of EOS: From ICO Frenzy to Lingering in the Valley

The story of EOS began in 2017, a time when the cryptocurrency world was filled with opportunities. The cheers of Bitcoin breaking the $10,000 mark had not yet faded, and EOS entered the market with boasts of "one million TPS (transactions per second)" and "zero fees." Founder Dan Larimer was hailed as a "technical prophet," and Block.one raised $4.2 billion through a year-long ICO, setting a record for the most extravagant financing in blockchain history. In the spring of 2018, the price of EOS soared from $5 to $23, briefly placing its market cap among the top five, with the election of 21 supernodes in full swing, and the community was filled with enthusiasm, as if the future of blockchain had already been rewritten.

However, the grand occasion was short-lived. The DPoS (Delegated Proof of Stake) mechanism of EOS, while improving transaction efficiency, has faced criticism for its high centralization. 21 nodes are controlled by exchanges, making retail voting virtually meaningless, and the farce of the on-chain arbitration agency freezing accounts has further eroded trust. On a technical level, the "million TPS" claim has become a joke, with a peak of only over 4000 after the mainnet launch, far below the promotional target. The RAM and CPU resource model is complex, transfer costs are high, and the developer experience can be described as disastrous. By 2022, EOS's DApp ecosystem was nearly withered, with active users below 50,000 and a total locked value (TVL) of only 174 million dollars, overshadowed by Ethereum (60 billion dollars) and Solana (12 billion dollars).

Block.one's actions further extinguished the community's hopes. The $4.2 billion ICO funds were invested in assets such as Bitcoin (currently holding 160,000 BTC, valued at about $16 billion) and U.S. Treasury bonds, which are almost unrelated to the EOS ecosystem. In 2019, Block.one was fined $24 million by the SEC for illegal ICO practices, yet did not provide any substantial compensation to the community. On platform X, the community angrily mocked: "Block.one is not a blockchain company; it is the Buffett of the crypto world." The market value of EOS plummeted from $18 billion to less than $800 million in 2025, dropping out of the top 100 rankings, and the former "Ethereum killer" has become a market outlier.

Vaulta's Transformation: The Ambitions and Controversies of a Web3 Bank

Just when EOS seemed to be reaching its end, the community's counterattack brought a turnaround. In 2021, the EOS Network Foundation (ENF) took over the project under the leadership of Yves La Rose, uniting 17 nodes to marginalize Block.one and embark on a path of self-rescue. On March 18, 2025, EOS announced its rebranding to Vaulta, positioning itself as a "Web3 banking operating system," with the goal of reshaping wealth management, consumer payments, portfolios, and insurance through blockchain technology. This transformation not only caused EOS to rise 30% against the trend in the bear market on April 1, breaking the $0.8 price barrier, but also laid the groundwork for WLFI investments.

Vaulta's core architecture utilizes EOS's C++ smart contracts and decentralized RAM database, supplemented by inter-blockchain communication (IBC), attempting to connect traditional finance with DeFi. ENF injects vitality into the ecosystem through a series of innovations:

The Rebirth of the RAM Market: EOS's RAM (memory resources) has become an invisible pillar of the ecosystem due to its scarcity. Vaulta optimizes resource allocation by launching the XRAM mechanism, allowing users to stake tokens in exchange for RAM and share Gas fees priced in BTC. As of March 2025, the demand for RAM has surged due to the growth of new projects, with some users earning substantial BTC dividends through XRAM staking; on the X platform, some even jokingly said, "RAM is more like an asset than EOS tokens."

The Bitcoin narrative of exSat: The exSat project, launched in 2024, uses EOS RAM to store Bitcoin UTXO data, aiming to enhance BTC transaction speed and support DeFi applications. As of March 2025, exSat has locked 5,413 BTC, with a TVL of $587 million, far surpassing the $174 million of the EOS mainnet, becoming the "new engine" of the ecosystem. However, the technical stability and compliance of exSat remain in question, and the community doubts whether it is merely "making grand promises for BTC."

1DEX and RWA's Layout: 1DEX is Vaulta's decentralized exchange, attempting to fill the gaps in DeFi, but its insufficient EVM compatibility and lack of documentation have led to criticism as a "work in progress." Vaulta also plans to tokenize real-world assets (RWA) to provide investment opportunities in real estate, stocks, etc., attracting institutional capital.

Vaulta's transformation has sparked polarized reactions. Optimists believe that the Web3 bank aligns with the trend of compliance in the crypto market, and the innovations of RAM and exSat inject new vitality into EOS; pessimists, however, question whether Vaulta's technological foundation can compete with Ethereum and Solana, suggesting that the transformation blueprint may just be a "rebranding to exploit users." On platform X, someone joked: "EOS has gone from Ethereum killer to Bitcoin's little brother, and now it wants to be a bank teller? What a versatile chain."

Why is WLFI betting on EOS? The intertwining of strategy and speculation

WLFI purchased 3.63 million EOS for 3 million USDT during the wave of Vaulta's transformation. This decision, combined with its DeFi strategy and the branding effect of the Trump family, contains multiple considerations.

First of all, Vaulta's technical features are highly compatible with WLFI's USD-pegged stablecoin USD1. USD1 aims to provide low-cost and high-efficiency DeFi services, while Vaulta's high throughput (1-second block time), near-zero transaction fees, and EVM compatibility make it an ideal operating platform. Compared to the high Gas fees of Ethereum and the network volatility of Solana, Vaulta's stability supports USD1's cross-chain transactions and liquidity pools. Vaulta's RAM market can also provide efficient solutions for USD1's smart contracts and data storage. On platform X, analysts speculate that WLFI may plan to deploy USD1-related lending or payment protocols on exSat to expand the use cases of the stablecoin.

Second, the low valuation of EOS provides speculative opportunities. In May 2025, the EOS price is around $0.825, which is at an all-time low and has a low price-to-earnings ratio. The 30% rally triggered by Vaulta's transformation and exSat's TVL growth ($587 million) injected upward momentum into EOS, with WLFI trading in line with the market, indicating a cautious positioning through open markets or over-the-counter trading. If Vaulta's Web3 banking narrative continues to ferment, EOS could return to $1.4 or even higher, delivering significant returns. The brand effect of the Trump family has further amplified the market influence of this investment, similar to the EOS "bailout" market in 2018, and users on the X platform have predicted: "The entry of WLFI may ignite retail FOMO, and EOS may rush to $1 in the short term." ”

In addition, Vaulta's exSat and RWA programs provide ecological synergy opportunities for WLFI. exSat supports Bitcoin DeFi through EOS's RAM, aligning with the cross-chain target of USD1; RWA's tokenization of real estate and stocks provides an entry point for WLFI's wealth management strategy. WLFI may gain priority subscription rights for RWA by investing in EOS or collaborate with Vaulta to develop new products. WLFI's recent $2 billion deal with Abu Dhabi Investment Company MGX also demonstrates its search for partners globally, and Vaulta's international community may offer emerging market opportunities.

The policy background for Trump's second term (starting in 2025) has added confidence to the investment in WLFI. The stablecoin legislation promoted by the Trump administration (such as the GENIUS Act) and the "Strategic Crypto Reserve" plan may create a favorable environment for Vaulta's Web3 banking model. As the flagship project of the Trump family, WLFI not only strengthens its market layout by investing in EOS but also consolidates the brand image of "Made in America" blockchain through Vaulta's transformation narrative. On platform X, a user commented: "WLFI buying EOS is like Trump endorsing Vaulta, a dual signal of politics and the market."

Market Impact and Concerns

WLFI's EOS investment could trigger a short-term market rush. The trading volume of 3 million USDT is not huge, but the attention of the Trump family may push EOS to $1.0-1.4, and the trading volume and FOMO sentiment will be further amplified. In the long run, if WLFI and Vaulta achieve in-depth cooperation in the field of USD1, exSat, or RWA, it may inject new vitality into the EOS ecosystem and attract developers and users to return. However, the difficulty of implementing Vaulta (technical stability, compliance) and competitive pressures (Ethereum, Solana) are unavoidable challenges. EOS's historical baggage (Block.one's crisis of confidence) and WLFI's conflict-of-interest controversy (the family's profit of about $400 million) could also trigger regulatory scrutiny and increase investment risk.

For investors, the undervaluation of EOS and the narrative of Vaulta provide short-term speculative opportunities, while the BTC distribution from XRAM and the growth of exSat add highlights to the ecosystem. However, caution is needed regarding the long-term outlook, as Vaulta's execution capability and the rebuilding of market trust will be crucial.

Conclusion

EOS's seven years, from the glory of a $4.2 billion ICO to a 90% decrease in market value, is a history of rise and fall in the blockchain era. Vaulta's transformation into a Web3 bank has injected new life into this "old horse," with innovations in the RAM market, exSat, and RWA allowing EOS to rise against the trend in the bear market of 2025. WLFI's purchase of EOS for $3 million is not only a recognition of Vaulta's technological potential but also a high-profile move by the Trump family in the crypto market. This investment could drive a short-term increase in EOS and pave the way for the expansion of the USD1 ecosystem, but its long-term success depends on Vaulta's ability to execute and rebuild trust.

The cryptocurrency arena has always been dramatic. EOS, once known as the "Ethereum killer," is now returning to the stage in the form of Vaulta. The entry of WLFI is like a flare, igniting the market's imagination. The endpoint is either the revival of Web3 banking or yet another echo of speculation. Time will reveal the answer. For investors, facing this "old horse," the choice is whether to follow the trend or remain rational, perhaps requiring a heart that is resilient enough.