Donald Trump’s Crypto Business Hits Roadblock, Slashes Fundraising Goal by 90%
The cryptocurrency market has been abuzz with excitement in recent times, but even the big players are not immune to setbacks. A regulatory filing from World Liberty Financial, a company founded by former President Donald Trump, reveals that it has slashed its fundraising goal after sales of its WLFI token fell dramatically short of the initial target.
According to the SEC filing dated October 30th, World Liberty Financial plans to "terminate" WLFI sales upon hitting $30 million. This is a significant cutback from the original $300 million target, representing a reduction of over 90%. The company’s decision to reduce its fundraising goal has raised questions about whether former President Trump will see any substantial returns from his involvement in the project.
WLFI Token Sales Struggle to Gain Momentum
Since launching in mid-October, World Liberty Financial’s WLFI token sales have been sluggish. Despite an initial flurry of activity on launch day, which saw its website crash under the weight of demand, investor enthusiasm has waned significantly. As a result, the company’s wallet has only received around $14 million worth of cryptocurrencies from investors purchasing the project’s WLFI tokens.
The lackluster performance of WLFI token sales may be attributed to concerns over the project’s fundamentals. A recent research note from Galaxy Digital highlighted that the WLFI token lacks any mechanism to accrue value, being a governance token over a protocol that does not yet exist. This has led some investors to become jittery about the viability of World Liberty Financial’s venture.
DT Marks DEFI LLC Set to Receive 75% of Net Protocol Revenues
The SEC filing also reveals that DT Marks DEFI LLC, a Trump-owned entity, will receive 75% of "net protocol revenues" (which include token sales) only after World Liberty Financial has amassed a $30 million war chest to fund operations. This means that even if the project fails to meet its fundraising goal, DT Marks DEFI LLC will still be entitled to a significant portion of any revenue generated by WLFI token sales.
World Liberty Financial’s Unclear Future
The company’s website provides little clarity on what World Liberty Financial plans to become or how it intends to utilize the funds raised through its WLFI token sale. While there is talk of opening a borrow-and-lending service, Decrypt recently reported that World Liberty Financial plans to launch a stablecoin. Representatives for World Liberty Financial did not immediately respond to a request for comment.
Conclusion
The slashing of fundraising goals by 90% raises significant concerns about the viability and potential returns on investment in World Liberty Financial’s WLFI token. As the cryptocurrency market continues to evolve, it is essential that investors remain vigilant and thoroughly research any project before committing their funds. The success or failure of World Liberty Financial will undoubtedly be closely watched as the outcome has implications for former President Trump’s business interests and the broader cryptocurrency industry.