Trump’s WLFI Token Flops: Raises Less Than 4% of $300M Goal

The launch of the Donald Trump-endorsed cryptocurrency, WLFI, has not met its initial fundraising expectations.

World Liberty Financial, the organization behind the digital coin, aimed to raise $300 million through the sale of 20 billion WLFI tokens. Currently, the project has sold only 788 million tokens, raising approximately $11.8 million, which is less than 4% of the target. Blockchain data from Etherscan shows that around 9,050 unique wallet addresses currently hold WLFI, representing roughly 9% of the 100,000 wallets whitelisted for participation.

The sale began on Tuesday, with Trump promoting the project through a video on X, formerly Twitter. Despite the promotional efforts, the platform encountered multiple technical issues, with its website repeatedly crashing and going offline for maintenance, hampering the token sale’s momentum.

WLFI is structured as a Regulation D token offering, which limits participation to accredited investors with a net worth of more than $1 million. This provision allows the sale to bypass the U.S. Securities and Exchange Commission’s registration requirements but significantly narrows the pool of potential buyers. Retail investors, who generally make up a large part of token sales, have been largely excluded from this offering.

World Liberty Financial has marketed WLFI as a governance token that allows holders to vote on decisions regarding the platform’s future operations. However, the crypto bank WLFI is tied to is not yet operational, and there are no decisions for token holders to vote on at this time. While the team has filed an approval request with the crypto lending platform Aave, the project is still in the early stages.

Changes to Token Sale Structure

In response to the underwhelming performance, the team made modifications to the sale process. The percentage of tokens available to public buyers has been reduced from 63% to 35%. Additionally, the website now states that investors should assume WLFI tokens could remain non-transferable indefinitely, despite earlier claims that they would become transferable after 12 months.

Donald Trump, as part of his endorsement deal, is set to receive 22.5 billion WLFI tokens, more than what is currently available to public buyers, along with significant fees for his services. The project has yet to release a full white paper or detailed business plan, leaving potential investors with limited information on its long-term plans.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

Post Views: 88