In an ambitious move, Donald Trump launched a new cryptocurrency initiative called World Liberty Financial (WLF). The project, primarily aimed at establishing a crypto bank, has encountered substantial difficulties from its inception. Despite initial expectations of attracting significant investor interest, the launch has been marred by numerous technical setbacks, limiting participation and overshadowing the initiative’s potential.
Technical Setbacks for Trump’s Crypto Venture
According to a recent report by CNBC, the launch of WLF faced considerable technical issues. The token sale, which commenced on a Tuesday, experienced multiple website outages, frustrating potential investors. This was a stark contrast to the promising outlook shared by Zachary Folkman, WLF’s co-founder, who indicated that over 100,000 individuals had shown interest by joining the whitelist for this investment opportunity.
Reality vs. Expectations
Despite this optimistic projection, blockchain data from Etherscan painted a different picture. By Tuesday afternoon, only approximately 4,300 unique wallet addresses held WLF tokens, accounting for a mere 4% of the anticipated investors. The platform reported selling over 532 million tokens at 15 cents each, which represents less than 3% of the total 20 billion tokens available for public sale.
Website Outages and User Frustration
Throughout the token sale, users repeatedly encountered disruptions, with the website frequently displaying a maintenance message. These technical difficulties remain unaddressed by WLF, which has yet to issue an official statement explaining the cause of these issues.
Trump’s Branding and Ambitious Goals
The timing of these setbacks is particularly crucial as Trump, the Republican presidential nominee, heavily promoted the project since August under the branding “The DeFiant Ones,” alluding to the decentralized finance (DeFi) movement. The roadmap set forth by the project outlines an ambitious goal to raise up to $300 million at a $1.5 billion valuation during the initial token sale.
Investor Participation and Voting Rights
The structure of the WLF token, WLFI, allows it to raise capital under a Regulation D offering. This enables the project to bypass SEC registration as a security, provided certain conditions are met, such as limiting the sale size and restricting participation to accredited investors. Despite these provisions, detailed information regarding the project’s functionalities remains limited.
Trump Family Involvement and Future Prospects
Folkman, along with the founding team that includes members of the Trump family, has allocated 20% of WLF’s tokens to themselves. Individuals associated with the Trump family project have suggested that the platform will enable borrowing, lending, and investing in cryptocurrencies. However, a formal white paper or comprehensive business plan has yet to be released. The primary disclosure thus far is that investors will receive voting rights on the forthcoming WLF platform.
Steps Towards Legitimacy
In a bid to enhance its credibility, WLF has initiated the process of obtaining approval from Aave, a reputable DeFi ecosystem and lending platform known for its open-source framework. This move is seen as a step towards establishing legitimacy within the crypto community.
Market Overview
The broader cryptocurrency market remains volatile, with the total market cap valuation standing at $2.24 trillion, according to TradingView.com. This environment poses both challenges and opportunities for new initiatives like WLF, as they navigate the complexities of the crypto landscape.
