Summary
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World Liberty Financial (WLFI), a DeFi project linked to the Trump family, has completed a second token sale, bringing its total raised from two sales to $550 million.
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The project has adjusted its public token sale allocation to 35% of total WLFI supply, down from an originally stated 63%, and reports over 85,000 KYC-verified participants in the sales.
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Despite claiming investments in a “strategic reserve” of crypto assets, blockchain analysis indicates WLFI’s portfolio is currently experiencing losses across all holdings, totaling approximately $120 million in decreased valuation.
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World Liberty Financial clarifies that while Donald Trump is termed “Chief Crypto Advocate” and an entity linked to him and his family holds 22.5 billion WLFI tokens with fee entitlement, he holds no official position within the company.
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Initially planning to sell 63% of WLFI tokens to the public, World Liberty Financial now indicates a reduced target of 35% for public distribution, as detailed in their updated “gold paper” documentation.
World Liberty Financial, DeFi Project Linked to Trump, Completes $550 Million in Token Sales to 85,000 Buyers
World Liberty Financial (WLFI), a decentralized finance (DeFi) initiative reportedly associated with the Trump family, has finalized its second phase of token distribution.
According to a recently issued press release, the DeFi protocol has sold an additional $250 million worth of its WLFI tokens. This follows a previous sale in October, which generated $300 million.
Initially, the project indicated that 63% of the total WLFI supply would be offered for public sale. However, documentation currently identified as its whitepaper, termed “gold paper,” suggests a revised figure, with World Liberty Financial now indicating a target of 35% for public token sales.
World Liberty reports that over 85,000 individuals globally completed a know-your-customer (KYC) verification process to qualify for participation in the token sales.
The DeFi project states it has invested in a “strategic reserve” composed of 11 different crypto assets. However, analysis from the blockchain monitoring firm Lookonchain recently indicated that the WLFI portfolio is currently experiencing losses across all of its held tokens, with a total valuation decrease of approximately $120 million.
In website disclaimers, World Liberty clarifies that former President Donald Trump does not hold any official position within the company, either as an officer, director, founder, or employee, nor within any affiliated entities. Despite this, the company’s website identifies the former president as its “Chief Crypto Advocate.”
Further information on World Liberty’s website reveals that DT Marks DEFI LLC, an entity linked to Trump and members of his family, possesses 22.5 billion WLFI tokens and is set to receive fees generated by the project.
Research indicates that World Liberty Financial and its WLFI token sales have faced considerable scrutiny and skepticism within the cryptocurrency and financial communities.
Critics have raised concerns regarding the project’s lack of transparency in key areas such as the composition of its “strategic reserve” beyond the top few holdings publicly tracked and the actual utility of the WLFI token itself.
Also Read: Trump to Introduce Crypto Platform World Liberty Financial Prior to Elections
Donald Trump’s sons, Donald Jr. and Eric Trump, will introduce World Liberty Financial, a cryptocurrency platform, 50 days before the US presidential elections. The launch event, which will feature web and television video components, is a departure from Trump’s previous strategy. The platform aims to promote the project initiated by Trump’s sons, raising concerns about the integration of business and politics during the presidential campaign. Critics have criticized Trump’s decision to host the launch event at his Mar-a-Lago residence and broadcast it on the X site, as it is an unconventional approach to the…[Read More]
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