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- Donald Trump’s latest crypto grift has not gone as planned, with only 4% of his World Liberty Financial tokens sold
- Only accredited investors can buy the token, and warnings have been issued over ownership rights
- The project has made just $12 billion of the $288 billion Trump could theoretically have made
Donald Trump’s latest crypto cash grab appears to have failed, as only 4% of his World Liberty Financial (WLF) tokens sold upon launch. Trump was hoping max out his sale of 20 billion WLF tokens to accredited investors, but only 830 million have been sold, with warnings on social media about restrictions on withdrawals. World Liberty Financial represents a pivot from the cash-hungry sunbed botherer from NTFs to DeFi, but it seems that even his rich friends have gotten tired of his grifts and steered clear.
Accredited Investors Shy Away
World Liberty Financial represents, publicly at least, Trump’s bid to revolutionize the world of decentralized finance (DeFi). The project includes a governance token, WLFI, which will allow holders to vote on platform decisions. However, only accredited investors, defined by strict income and asset requirements, can participate, raising questions about accessibility.
World Liberty Financial allegedly aims to provide a decentralized financial system where users can borrow, lend, and create liquidity pools. The WLFI token plays a pivotal role in this system, offering governance rights but not economic benefits such as dividends. According to Trump, the U.S. needs to lead in crypto innovation to compete with other global powers like China, which he believes will dominate the sector if the U.S. doesn’t step up its involvement
Warning Issues Over Lockups
However, the launch has sparked controversy. Critics point to potential conflicts of interest, given Trump’s ongoing 2024 presidential campaign, with some speculating that the token sale could indirectly support his campaign finances. Watchdogs have raised ethical concerns, particularly if Trump is re-elected and his administration makes policy decisions that could benefit his venture.
The tokenomics, too, are troublesome, as a community note on Twitter pointed out:
Today’s the day! @WorldLibertyFi token sale is live. Get your $WLFI tokens now. Purchase $WLFI here: https://t.co/jg1tOaHHBy pic.twitter.com/j8ewxa13wp
— Donald J. Trump (@realDonaldTrump) October 15, 2024
The launch of the token was not without its problems, with the website crashing soon after going live. It received more than 72 million unique visitors in its first hour, according to WLFI advisor Sandy Peng, with almost 2,900 investors buying the token—less than 0.01 per cent of those who visited.
The post Donald Trump Crypto Cash Grab Fails as Just 4% of WLF Tokens Sold appeared first on FullyCrypto.