Trump's DeFi Project Reduces Fundraising Target to $30 Million
World Liberty Financial, after 2 weeks of WLFI token sale, has only raised $14.5 million, equivalent to 4.84% of its target.
According to a filing with the Securities and Exchange Commission (SEC), the DeFi project World Liberty Financial (WLFI) promoted by the family of former US President Donald Trump has adjusted its fundraising target from $300 million to $30 million, equivalent to a 90% decrease.
The reason is that after more than 2 weeks since starting to call for money from investors through the WLFI token sale at $0.015/token, World Liberty Financial has only sold 969.26 million tokens, raising $14.5 million.
The project previously set a target of raising up to $300 million from qualified investors, with the allocation for this activity being 20 billion WLFI, accounting for 1/5 of the total supply.
With low demand, the team behind World Liberty Financial informed the SEC that it would end the fundraising campaign early once the $30 million WLFI mark had been sold, which was 10 times lower than the original plan.
As reported, there are many reasons explaining World Liberty Financial's failure to attract the attention of the crypto investment community, the most prominent of which include:
- Investors must KYC the project, limiting the number of people who can participate in the purchase;
- The WLFI token has few uses beyond governance, and cannot be traded in the first 12 months;
- World Liberty Financial itself does not bring any breakthroughs in the DeFi segment, but is essentially just a crypto lending project.
Not stopping there, the community was also indignant when World Liberty Financial's prospectus said that in exchange for the Trump family's participation, the former US President would receive up to 75% of the project's future revenue, as well as be allocated 22.5 billion WLFI, worth 337.5 million USD based on the token sale price of 0.015 USD.
In a related development, on the evening of October 31, Mr. Trump posted a congratulatory message on the 16th anniversary of the Bitcoin whitepaper first published by Satoshi Nakamoto, affirming that he would encourage Bitcoin to develop in the United States. This statement once again highlighted the pro-Bitcoin stance that Mr. Trump has frequently used during his election campaign over the past several months.
I would like to wish our great Bitcoiners a Happy 16th Anniversary of Satoshi's White Paper. We will end Kamala’s war on crypto, & Bitcoin will be MADE IN THE USA! VOTE TRUMP! #Bitcoin #FreeRossDayOne — Donald J. Trump (@realDonaldTrump) October 31, 2024
