Crypto Chaos: Trump-Backed Digital Coin Struggles to Gain Traction
The highly anticipated launch of World Liberty Financial’s digital coin, WLFI, has failed to impress, with the token falling short of its ambitious fundraising goals. Despite boasts of “unheard of” interest, blockchain data reveals that only around 9% of registered investors have actually purchased the coin.
A Lackluster Debut
WLFI’s token sale began on Tuesday, with project co-founder Zachary Folkman claiming that over 100,000 people were whitelisted to invest. However, as of Wednesday morning, only around 9,050 unique wallet addresses hold the token. This represents a mere fraction of the total number of people who registered.
Trump’s Endorsement Falls Flat
Even a promotional video post from Donald Trump, the Republican nominee for president, failed to boost the coin’s fortunes. Trump touted the World Liberty website and declared that “crypto is the future,” but it seems his influence wasn’t enough to sway investors.
Fundraising Woes
The WLFI token sale aims to raise $300 million at a $1.5 billion valuation, but so far, it has only managed to sell around 788 million tokens at 1.5 cents per token. This amounts to a paltry $11.8 million, a far cry from the target.
Technical Issues and Regulatory Roadblocks
The project website suffered frequent outages, displaying a “maintenance” page, which likely deterred potential investors. Furthermore, the token’s Regulation D status limits the sale to accredited investors, reducing the potential investor pool. This provision also means that retail investors are largely cut out of the process.
A Governance Token with No Governance
WLFI is touted as a governance token, allowing holders to vote on decisions regarding the protocol. However, with no crypto bank connected to the digital coin yet existing, there’s nothing for token holders to vote on. The World Liberty team has only released a brief proposal, lacking a formal business plan or white paper.
A Murky Future
As it stands, WLFI token holders are left with an IOU until the platform is approved and goes live. In the meantime, investment in the coin goes to the platform’s treasury. The fine print on WLF’s website reveals that Trump and his family members may receive tokens and significant fees for services provided to World Liberty Financial. The future of WLFI remains uncertain, and investors are left wondering if they’ll ever see a return on their investment.
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