WLFI's Major Acquisition of EOS: A Revival of Web3 Banking or the Echo 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 big moves again, is EOS about to soar?" Others sneered, "It's just another 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 rose against the trend by over 30% under its new identity as "Web3 Bank" Vaulta, with prices breaking through $0.8. Now, WLFI's high-profile entry adds fuel to the narrative of EOS's recovery. What exactly has allowed this "old horse" of the blockchain to frequently stir waves during its low points? Why has WLFI chosen EOS as its investment target? Let's trace back the ups and downs of EOS, dissect Vaulta's transformation logic, 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 gold. The cheers of Bitcoin breaking $10,000 had not yet faded, and EOS entered the market with the bold claims of "one million TPS (transactions per second)" and "zero transaction fees." Founder Dan Larimer was hailed as a "tech prophet," and Block.one raised $4.2 billion through a year-long ICO, setting the most extravagant fundraising record in blockchain history. In the spring of 2018, EOS's price soared from $5 to $23, and its market capitalization briefly ranked among the top five. The election of 21 supernodes was in full swing, the community was fervent, and it seemed that the future of blockchain had been rewritten.

However, the grand occasion was short-lived. The DPoS (Delegated Proof of Stake) mechanism of EOS improved transaction efficiency but was heavily criticized for its high centralization. 21 nodes are controlled by exchanges, rendering retail votes meaningless, and the farce of on-chain arbitration freezing accounts further eroded trust. On a technical level, "one million TPS" became a joke, with the peak after the mainnet launch only exceeding 4,000, far below the promotional target. The RAM and CPU resource model is complex, transfer costs are high, and the developer experience is nothing short of a disaster. By 2022, the DApp ecosystem of EOS was nearly withered, with fewer than 50,000 active users, and a total locked value (TVL) of only $174 million, which pales in comparison to Ethereum ($60 billion) and Solana ($12 billion).

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

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 turning point. In 2021, the EOS Network Foundation (ENF), led by Yves La Rose, took over the project and marginalized Block.one with the cooperation of 17 nodes, embarking on a path of self-rescue. On March 18, 2025, EOS announced its rebranding to Vaulta, positioning itself as a "Web3 banking operating system," aiming to reshape wealth management, consumer payments, investment portfolios, and insurance through blockchain technology. This transformation not only allowed EOS to rise 30% against the trend during the bear market on April 1, breaking the price of 0.8 dollars, but also laid the groundwork for investments in WLFI.

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

The Rebirth of the RAM Market: The RAM (memory resource) of EOS has become an invisible pillar of the ecosystem due to its scarcity. Vaulta has optimized resource allocation and launched 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 considerable BTC shares through XRAM staking, and some even joking on the X platform: "RAM is more like an asset than EOS coins."

The Bitcoin narrative of exSat: The exSat project, launched in 2024, aims to enhance BTC transaction speed and support DeFi applications by using EOS's RAM storage for Bitcoin UTXO data. As of March 2025, exSat has locked 5,413 BTC with a TVL of $587 million, far exceeding 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, with the community doubting whether it is merely "making big promises for BTC."

1DEX and RWA Layout: 1DEX is Vaulta's decentralized exchange, attempting to fill in the gaps of DeFi, but its lack of EVM compatibility and missing documentation have led to criticisms of it being a "work in progress." Vaulta also plans to provide investment opportunities in real estate, stocks, and more by tokenizing real-world assets (RWA) to attract institutional funding.

Vaulta's transformation has sparked polarized reactions. Optimists believe that the Web3 bank aligns with the regulatory trends of the crypto market, and the innovations of RAM and exSat inject new vitality into EOS; pessimists question whether Vaulta's technological foundation can compete with Ethereum and Solana, suggesting that the transformation blueprint may just be a "name change to harvest the crops." On platform X, some mockingly said: "EOS has gone from Ethereum killer to Bitcoin junior, and now 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 with 3 million USDT in a transaction that took place during the wave of Vaulta's transformation. This decision, in conjunction with its DeFi strategy and the brand effect of the Trump family, encompasses multiple considerations.

Firstly, Vaulta's technical characteristics are highly compatible with WLFI's dollar-pegged stablecoin USD1. USD1 aims to provide low-cost and highly efficient DeFi services, while Vaulta's high throughput (1 second block time), near-zero transaction fees, and EVM compatibility make it an ideal operating platform. In contrast to Ethereum's high gas fees and Solana's network volatility, 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 the X platform, analysts speculate that WLFI may plan to deploy USD1-related lending or payment protocols on exSat to expand the use cases for the stablecoin.

Second, the low valuation of EOS provides an opportunity for speculation. 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 the Vaulta transformation and the TVL growth of exSat ($587 million) injected upward momentum into EOS, and WLFI is trading in line with the market, indicating that it is prudently positioned through open market 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 "bailout" of EOS in 2018, and users on platform X have predicted: "WLFI entry 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 goal of USD1; RWA's real estate and stock tokenization offers 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 provide it with emerging market opportunities.

The policy background for Trump's second term (starting in 2025) adds confidence to WLFI's investments. 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 market."

Market Impact and Concerns

WLFI's investment in EOS may spark a short-term market frenzy. The trading volume of 3 million USDT may not be huge, but the attention from the Trump family could drive EOS up to 1.0-1.4 dollars, with trading volume and FOMO sentiment further amplified. In the long run, if WLFI and Vaulta achieve deep cooperation in the areas of USD1, exSat, or RWA, it could inject new vitality into the EOS ecosystem, attracting developers and users back. However, the challenges of Vaulta's implementation (technical stability, compliance) and competitive pressure (Ethereum, Solana) are obstacles that cannot be overlooked. The historical burden of EOS (Block.one's trust crisis) and the controversy over WLFI's conflict of interest (family profits of about 400 million dollars) may also trigger regulatory scrutiny, increasing investment risks.

For investors, the undervaluation of EOS and the narrative of Vaulta provide a short-term speculative opportunity, while the BTC revenue sharing of XRAM and the growth of exSat add highlights to the ecosystem. However, caution is needed for the long-term outlook, as Vaulta's execution capability and the rebuilding of market trust will be key.

Conclusion

The seven years of EOS, from the glory of a $4.2 billion ICO to the trough of a 90% decline in market capitalization, are a history of the rise and fall of the blockchain era. Vaulta's Web3 banking transformation has breathed new life into this "old horse", and innovations in the RAM market, exSat, and RWA have allowed EOS to buck the trend in the bear market of 2025. WLFI's $3 million purchase of EOS is both a recognition of the potential of Vaulta's technology and a high-profile move by the Trump family in the crypto market. This investment may drive a short-term rally for EOS and pave the way for the expansion of the USD1 ecosystem, but its long-term success depends on Vaulta's ability to land and rebuild trust.

The cryptocurrency arena has always been dramatic. EOS, once known as the "Ethereum killer," has now returned to the stage under the identity of Vaulta, and the entry of WLFI is like a flare, igniting the market's imagination. Is the end the revival of Web3 banks, or another echo of speculation? Time will reveal the answer. For investors, when facing this "old horse," should they follow the trend or remain rational? Perhaps it requires a heart that is resilient enough.