Trump-backed crypto coin misses $300 million sales target, raises less than $12 million
Trump-backed token sale misses project targets one day into launch.
It's been just over 24 hours since the launch of the Donald Trump-endorsed digital coin "WLFI," and the token is failing to deliver on the ambitious fundraising goals set by its founding team.
World Liberty Financial, a cryptocurrency bank aiming to revolutionize the way people borrow, lend, and invest in digital coins, launched its highly anticipated token sale on Tuesday morning. The project, which has been generating significant buzz in the cryptocurrency market, has already attracted over 100,000 people to its whitelist, eager to invest.
However, the actual results of the token sale have been less impressive, with only about 9,050 unique wallet addresses holding the token as of Wednesday morning, representing roughly 9% of the total number of people who registered.
The token sale, seeking to raise $300 million at a $1.5 billion valuation, has so far sold over 788 million tokens at 1.5 cents per token, amounting to around $11.8 million. This is less than 4% of the 20 billion tokens made available for public sale and still far off from the fundraising target. The project's decision to use a Regulation D token offering, which limits the size of the sale and restricts it to accredited investors, may have contributed to the lackluster results. This means that retail investors have largely been cut out of the process, reducing the potential investor pool.
Another concern is the lack of transparency surrounding the project. World Liberty Financial has not released an official white paper or formal business plan to the public, and the only information available is a 400-word proposal posted to Aave's governance forum. This lack of transparency has led to questions about the utility of the coin and the potential returns on investment. Potential investors are left wondering what the coin is designed to do, how it will be used, and what kind of returns they can expect.
Furthermore, the project's website has suffered regular outages, making it difficult for potential investors to access information and participate in the token sale. This lack of reliability and accessibility has raised concerns about the project's ability to execute its plans and provide a smooth experience for investors.
Additionally, the fine print on the website reveals that Trump and his family members may receive tokens from World Liberty Financial and that they are "entitled to receive significant fees for services provided to World Liberty Financial, which amount cannot yet be determined." This has raised eyebrows among investors, who may be concerned about potential conflicts of interest and the potential impact on the project's success.
Despite these challenges, the project has received a boost from none other than Donald Trump, the Republican nominee for president, who promoted the coin in a video post on Tuesday evening. Trump told his followers that the token sale was live and that "crypto is the future." While Trump's endorsement may have generated some buzz and attention, it is unclear whether it will be enough to overcome the project's other challenges and concerns.
In conclusion, while World Liberty Financial's token sale has generated significant interest and attention, the actual results have been less impressive. The project's decision to use a regulation D token offering and lack of transparency have raised concerns about the utility of the coin and the potential returns on investment. As the project moves forward, it will be important to address these concerns and provide more information to potential investors.
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