Donald Trump new cryptocurrency initiative, World Liberty Financial (WLF), has encountered significant challenges since its launch. According to a by CNBC, the project aims to establish a crypto bank and was expected to attract considerable investor interest. However, the token sale, which began on Tuesday, was marred by website outages and technical issues, severely limiting participation.
Trump Crypto Venture Faces Setbacks
Zachary Folkman, co-founder of WLF, had previously indicated that over 100,000 individuals were on the whitelist for the investment opportunity. Despite this promising start, the reality was starkly different.
As of Tuesday afternoon, blockchain data from Etherscan revealed that only about 4,300 unique wallet addresses held the WLF token, amounting to roughly 4% of the registered investors.
The platform reported selling more than 532 million tokens at a price of 15 cents each, which represents less than 3% of the total 20 billion tokens available for public sale.
Throughout the day, users faced consistent disruptions, with the website often displaying a message stating, “We are under maintenance.” WLF has yet to provide an official comment regarding these technical difficulties.
These setbacks come at a crucial time for Trump, who is the Republican presidential nominee and has heavily promoted the project since August under the branding “The DeFiant Ones,” a nod to decentralized finance (DeFi).
The project’s roadmap indicates an ambitious goal of raising up to $300 million at a $1.5 billion valuation during the initial sale.
Investors To Receive Voting Rights On WLF Platform
Folkman, who has a varied entrepreneurial background, including a previously owned company, Date Hotter Girls, has stated that 20% of WLF’s tokens are allocated to the founding team, which includes members of the Trump family.
The WLF token, WLFI, is structured as a Regulation D offering, allowing it to raise capital without registering as a security with the SEC, provided it meets certain conditions, such as limiting the sale size and restricting participation to accredited investors. So far, details about the project’s functionalities remain sparse.
Individuals associated with the Trump family project have suggested that the platform will facilitate borrowing, lending, and investing in cryptocurrencies. However, a formal white paper or comprehensive business plan has not been made public, and the primary disclosure has been that investors will receive voting rights on the forthcoming WLF platform.
In a step toward legitimacy, WLF has also initiated the process of obtaining approval from Aave, a DeFi ecosystem and lending platform known for its open-source framework and reputation in the crypto community.
Featured image from DALL-E, chart from TradingView.com