Trump’s Crypto Project, World Liberty Financial, Cuts Fundraising Goal By 90% Amid Token Sales Shortfall
World Liberty Financial, the cryptocurrency venture linked to former US President Donald Trump, reduced its fundraising goal by 90%. This follows disappointing sales of its WLFI token.
Initially aiming to raise $300 million, the firm now plans to target $30 million. It will terminate WLFI sales once that figure is reached, according to a recent filing with the US Securities and Exchange Commission (SEC).
This reduction signals potential financial challenges for Trump, who could see his anticipated earnings from the venture significantly delayed.
EXPLORE: Trump Family’s World Liberty Financial (WFLI) Will Raise $300M
Trump-Owned Company To Receive 75% Of Crypto Project Revenue
Documents reveal that DT Marks DEFI LLC, a Trump-owned company, is set to receive 75% of World Liberty Financials’ net protocol revenues. This includes token sales—only after the venture secures the $30 million needed for operations.
Since launching in mid-October, World Liberty Financial has reportedly garnered only about $14 million in cryptocurrency, well short of its initial ambitions.
The project saw an initial burst of investor interest, even causing its website to crash on launch day. However, demand has since declined. Some analysts attribute the lukewarm reception to skepticism around the project’s fundamentals.
Galaxy Digital, a financial services firm focused on crypto, noted in a research report that the WLFI token lacks a mechanism to generate value for holders. The firm found that WLFI primarily functions as a governance token for a protocol that has yet to materialize.
I promised to Make America Great Again, this time with crypto. @WorldLibertyFi is planning to help make America the crypto capital of the world! The whitelist for eligible persons is officially open – this is your chance to be part of this historic moment. Join:…
— Donald J. Trump (@realDonaldTrump) September 30, 2024
As of the Oct. 30 filing, World Liberty Financial reportedly holds $288 million worth of “nontransferable digital tokens” still available for sale. However, the company intends to halt token sales upon reaching $30 million, a sharp contrast to the original $300 million target.
Although World Liberty Financial’s website still lists the old sales goal, the firm has only sold just under 1 billion of the 20 billion available WLFI tokens, valued at approximately $1.5 billion.
However, these tokens remain locked, preventing investors from selling them on secondary markets.
EXPLORE: Donald Trump’s World Liberty Financial is Off to a Rocky Start
Trump’s DT Marks DEFI LLC to Receive 22.5 Billion WLFI Tokens
Meanwhile, Trump’s DT Marks DEFI LLC is expected to receive around 22.5 billion WLFI tokens, theoretically worth over $330 million based on World Liberty Financial’s public valuation. Despite these holdings, the practical value of the tokens remains uncertain.
World Liberty Financial’s vision, as outlined on its website, is somewhat vague but suggests plans for a platform offering crypto investment opportunities, possibly including a borrowing and lending service.
Alongside Trump, the founders of World Liberty Financial include Donald Trump Jr., Eric Trump, and Barron Trump, as well as Steve Witkoff and his son Zach Witkoff.
The Trump family has been promoting World Liberty Financial across social media platforms even before its launch, describing it as “the future of crypto.”
EXPLORE: Donald Trump Crypto Launch Date? What is WLF Token?
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