Facing weak demand, World Liberty Financial reduces its WLFI token fundraising goal by 90%.
Author: Vanity Fair
Key Takeaways
- World Liberty Financial reduced its WLFI token sale target from $300 million to $30 million due to weak demand.
- DT Marks DEFI LLC, associated with Donald Trump, will receive earnings only after World Liberty Financial reaches the $30 million goal.
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Donald Trump’s crypto project, World Liberty Financial, has reduced its fundraising goal from $300 million to just $30 million, according to an SEC filing dated October 30.
According to the SEC filing, World Liberty Financial stated, “the company currently only plans to sell tokens up to $30 million in the offering before terminating sale.”
Following underwhelming demand for its WLFI token, World Liberty Financial will end token sales once it reaches the revised $30 million target, a significant reduction from the original goal.
Since launching in mid-October, the project’s wallet has gathered over $14 million in crypto investments, but initial momentum quickly waned.
Although the token sale began with high expectations, even experiencing a website crash on launch day, demand has since fallen.
The WLFI token, designed as a governance token, currently holds little value for investors, as the protocol it is intended to govern is not yet operational.
With no clear mechanism for the token to accrue value, the fundamentals of World Liberty Financial are causing concern among investors.
Trump’s company DT Marks DEFI LLC is set to receive 22.5 billion WLFI tokens, valued at over $330 million based on the public sale price.
Meanwhile, the company has sold nearly 1 billion of its available 20 billion WLFI tokens at a $1.5 billion valuation, yet these tokens remain frozen, preventing any secondary market trading.
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