On Monday night, former President Donald Trump and his team unveiled details about the World Liberty Financial token (WLFI). This new decentralized finance (DeFi) initiative claims to transform the crypto ecosystem.
During a live stream event, the venture introduced a governance token, WLFI, allocating 63% for public sale.
20% of Token Supply Remains For Insiders
For over a month, the Trump family has been heightening anticipation with general descriptions of the project’s vast potential. They describe it as a comprehensive platform for crypto banking activities, including borrowing, lending, and investing.
At the event, founder Zak Folkman clarified the eagerly awaited details of token distribution. He stated that 20% of the tokens are reserved for the founding team, which includes the Trumps.
Furthermore, 17% will reward user engagement. Consequently, a substantial 63% will be available for public purchase, with no pre-sales or early buy-ins.
Read more: Tokenomics Explained: The Economics of Cryptocurrency Tokens
This venture emerges amidst scrutiny and conjecture. An earlier leaked draft had proposed a 70% allocation to the founders, raising alarms about a potential quick-profit scheme leveraging the Trump brand. Moreover, there were allegations that the Trump family plans to make $540 million through this new DeFi project.
Adjusting to a more public-friendly 63% aims to mitigate these concerns and enhance credibility.
WLFI will be marketed as a Reg D token, adhering to the Securities and Exchange Commission’s Regulation D. This rule allows companies to raise capital without registering their securities, given that it meets certain conditions.
During the event, Trump highlighted the necessity of adapting to cryptocurrency. His engagement grew when he realized the success of non-fungible token (NFT) sales bearing his trademark, which were transacted in crypto.
“Crypto is one of those things we have to do, whether we like it or not,” he stated.
Moreover, this strategic launch followed an alarming event. On Sunday, Trump and Steve Witkoff, a close friend and political donor, escaped an apparent assassination attempt while golfing in Florida.
Community Reacts to the Donald Trump DeFi Project
Nonetheless, there are mixed responses to this DeFi initiative. Some applaud the bold step into digital finance, while others remain skeptical of its long-term impact and its alignment with Trump’s political endeavors. Political strategist Simon Rosenberg remarked on the timing of the launch.
“Donald Trump is far more focused on his life after this losing campaign than he is about the losing campaign itself,” Rosenberg said.
Moreover, in an interview with BeInCrypto, Manuel Ferrari, Co-Founder of Money On Chain, said that users should focus on Bitcoin instead of Trump’s World Liberty Financial.
“The vast majority of people who will buy into Trump’s DeFi project would be better served simply buying Bitcoin and holding,” Ferrari told BeInCrypto.
Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024
World Liberty Financial has not yet disclosed detailed timelines for the project’s rollout. It urges followers to stay updated through official channels and guard against scams.
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