Trumps World Liberty Financial Token
The First Token Sale of Donald Trump Backed Crypto Community Project World Liberty Financial (WLFI) Turns a Disaster with Worst sales Numbers and Public Reception In this post, I will analyze one by one some of the various things serving as red flags in WLFI’s collapse and issues on a larger scale to its future.
Pathetic Launch: Only 2% Of Tokens Sold
This was most evident at the WLFI launch, where removed from a lackluster token sale performance. WLFI had announced that approximately 2% of the total token supply which was up to20 billion tokens would be floated for public sale, weeks into the ICO only about 523 million (USD) were sold. The reality of the online collectibles market has been a far cry from their anticipated figures, with only about 5,317 unique wallet holders // Image by Unsplash
This response was the weaker compared to what I would have expected for a project that promises financial freedom and ranks global banking systems. WLFI had planned to collect $300 million from its token offering, and while it did not raise that amount in the sale itself it reaches face-to-face with people paying absolutely no attention who have fallen for complete hype.
System Rages With Tech Problems: Token Sale Sees Website Fail
On top of that, there were repeated technical failures on WLFI’s website during the launch which turned potential buyers off. The site had 72 million unique visits in the first hour and many of these millions who tried to take advantage were just told to go home as they could not be accommodated according WLFI.
Others circled back to assume the technical glitches were anticipated or worse, planned by a project unprepared for this level of interest. This failure was seen by others as an indication of larger failures in the project’s architecture.
NTNs as a Major Investor Offender
An interesting aspect of WLFI was that the tokens if you were given them, no one ever did carry over. Investors however are locked out from trading or selling their WLFI tokens until the project rolls out its DeFi protocol and even then it’s unclear what utility those token come with. The caveat though is that it comes with a lockup which prohibits holder to cash out their investment, or doing anything such as de-centralized trading within the world of crypto.
Lack of these attributes made the token less attractive, especially to crypto-savvy investors which included low liquidity and lack of being able to transfer assets between markets.
Legal and Regulatory Risks
The legal landscape concerning WLFI are problematic too. Accredited investors only Aside from the fact Trump would probably prefer to keep his crypto at home in ‘Merica, many potential U.S. participants wouldn’t have enough money in their current account long enough to be declared solvent anyway (as bolstered by recent statements of a national bank Est 1913). In addition, WLFI has failed to secure a registration with U.S. regulatory bodies like the SEC (which could be problematic down as the agency continues its ongoing crackdowns in regards to the crypto market).
Others, such as former Trump admin figure Anthony Scaramucci have gone so far to wonder if WLFI could be a pump-and-dump scam intended only to direct funds towards the campaign of President Donald Trump under the auspices that it is an actual decentralized finance (DeFi) initiative. Those accusations have only served to further shadow the whole thing and discourage investors.
Sensory and Chronological Perceptions: Is WLFI a Tool in the Political Finish?
WLFI has been roundly attacked for the timing of its launch, months before the 2024 U.S. Presidential election. Critics, even some Bitcoin enthusiasts such like Nic Carter have cautioned that the crypto could prove to be an electoral hot potato for Trump and might distract from his campaign or compound any legal vulnerabilities he may face.
Some think this is smart politics, suggesting if regulators move against the project Trump will use it as proof of government overreach. Unless some sort of regulatory action is taken, it may put Trump and his team at the head of the DeFi trend allowing a financial alternative to compete with traditional institutions.
Airdrop investor Skepticism and flawed Tokenomics
The concerns of investors concerning WLFI have stemmed not only from legal and political issues, but also with the nature of its tokenomics. Twenty percent of the total token supply was set aside for the founding team (which includes Zak Folkman) and “Donald Trump & family,” according to WLFI’s co-founder. A further 17 percent was set aside for user rewards, with the balance of 63 percent made available to buy in by purchasing public. The intense concentration of tokens in the hands of founders has come under fire by crypto experts who suggest this could facilitate mischief, or that Dre Ventures will simply dump its treasured lot leading to a loss in investor trust.
WLFI’s Uncertain Future
It would seem that World Liberty Financial is about as useful for an actual cryptocurrency project, only right now it appears the same could be said of a political weapon. From technical inefficiencies, a possible lack of regulatory clarity and no physical way to transfer the NFTs causing skepticism from those in the crypto community, all have helped to a shaky start. But for all its embarrassing run-ins over the years, those episodes could simply give Trump and his allies more of a reason to continue the project in hopes that an appearance of political momentum would vindicate it after so much lost ground.
Nevertheless, the project is currently shrouded in controversy and his future looks uncertain at an era of growing regulatory tightness and stiffer competition within cryptocurrency. The whole world will be watching to see if this ambitious endeavor can dust itself off from the explosive fails of its first few weeks.
