As a seasoned researcher with over two decades of experience in the financial industry and a keen interest in cryptocurrencies, I find myself intrigued by the latest development surrounding Donald Trump’s crypto project, World Liberty Financial (WLFI). Given my past experiences with regulatory uncertainties and the ever-evolving landscape of digital assets, I can understand the rationale behind offering the WLFI token only to accredited investors.
According to confirmation, Donald Trump’s cryptocurrency venture, World Liberty Financial, intends to debut a governance token exclusively for qualified or accredited investors.
Following two attempted assassinations, Former President Donald Trump gave his first public interview after the incidents, speaking with crypto influencer Farokh Sarmad during a September 17 broadcast on X spaces. At this event, the World Liberty Financial team introduced their WLFI token to an audience of more than 100,000 listeners.
8:00 PM Eastern tonight, I’ll be broadcasting live from Mar-A-Lago. Don’t forget to mark your calendars and catch the show on X Spaces!
— Donald J. Trump (@realDonaldTrump) September 16, 2024
As an analyst, I’m sharing that the WLFI token is planned for sale under the Regulation D exemption. This means that companies can secure funds without the need for Securities and Exchange Commission (SEC) registration, provided they adhere to accredited investors or small, private transactions only.
Zak Folkman, one of the project’s creators, explained that their choice is influenced by the regulatory ambiguity concerning token sales within the United States. Frequently, the Securities and Exchange Commission categorizes these tokens as securities in this region.
For American residents, sales will necessitate verification as accredited investors. However, the means for non-American purchasers to partake is yet to be defined, as they might encounter other limitations.
WLFI tokens will function as exclusive, non-transferable governance tokens, empowering their holders to propose and vote on decisions concerning the progressive platform aiming to surpass traditional, slow, and outdated banking systems.
Approximately two-thirds of the issued tokens will be available for public purchase. Seventeen percent of these tokens are earmarked for user incentives, while twenty percent is reserved for the team and its advisors. Notably, Folkman revealed no specific total supply of the token but emphasized that the distribution would be exceptionally equitable. He assured there will be no pre-sales or early investments with reduced allocations for venture capitalists.
A launch date for the token launch is yet to be disclosed.
Trump silent about WLFI
On various past occasions, Trump hinted at the project, yet during this occasion, he steered clear of direct discussions about it. Instead, his focus was on broader themes concerning cryptocurrency regulations and the possible benefits of digital assets for the American economic landscape.
He stated that dealing with cryptocurrencies is something that’s inevitable, regardless of personal preferences. He went on to say that while the sector is already substantial, it pales in comparison to its potential future growth.
Additional family members of the Trumps took part in the conversation. Donald Trump Junior expressed his perspective on Decentralized Finance (DeFi), viewing it as a tool for promoting “equity within the financial structure,” which resonates with his interpretation of what the early American pioneers envisioned.
Eric Trump expressed his viewpoint that Decentralized Finance (DeFi) should become significantly easier for users to handle, as he himself encountered difficulties while maneuvering platforms such as Aave.
Concerns remain
Previously, crypto.news had mentioned worries about 70% of WLFI tokens being allocated to insiders, including Trump. Now that this figure has been clarified as 20%, those concerns have lessened, even though there’s still a lingering suspicion regarding the project’s security due to Chase Herro’s involvement in its leadership.
His last venture, Dough Financial, a lending platform similar to Aave, JustLend, and Spark, hit a peak of $3.2 million in assets before an exploit drained over $2 million. Now, Dough is nearly inactive, with just $9,747 in total value locked per Defilama.
In order to ensure the safety of our users, we have recruited highly-regarded security companies such as PeckShield, Zokyo, and BlockSecTeam to scrutinize and fortify our platform. Moreover, it’s been made public that the project’s code has undergone a comprehensive review by these experts to minimize potential weaknesses.
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2024-09-17 11:10