As a seasoned analyst with over two decades of experience in the financial markets, I must say that the World Liberty Financial (WLFI) crypto project, despite Trump’s victory in the U.S. presidential election, seems to be struggling more than The Apprentice contestants trying to build a skyscraper out of toothpicks and bubblegum.
Despite Donald Trump’s win in the U.S. presidential election, his World Liberty Financial cryptocurrency initiative continues to face challenges.
The data available on the project’s site suggests that World Liberty Financial (WLFI) has been finding it challenging to achieve its scaled-down target of selling $30 million worth of 2 billion tokens, as originally they intended to sell approximately $300 million worth of 18.92 billion tokens.
To date, World Liberty Financial has managed to sell 1.08 billion tokens, accumulating $16.2 million. With their set goal still a distance away, this indicates there’s plenty of ground left to cover. Interestingly, lesser-known tokens such as Poodlana and Bitcoin Dogs have surpassed this amount in less time when it comes to fundraising.
World Liberty Financial aims to be a big player in DeFi
As per their primary document, World Liberty Financial is modeled after Donald Trump and functions as a decentralized financial system. Its objective is to make financial resources more accessible for all, simultaneously strengthening the international standing of the United States dollar.
The system offers users an opportunity to store and borrow funds, predominantly in US dollar-backed digital currencies such as Tether (USDT) and USD Coin (USDC). Additionally, it intends to launch its own US dollar-pegged digital currency for use within the platform.
In simple terms, World Liberty Financial intends to challenge well-established DeFi networks like AAVE, Compound, and JustLend, which currently dominate a significant portion of the market. The WLFI token is the driving force behind this platform, serving as the tool for governance. This means that those who hold these tokens will have the ability to cast votes on decisions concerning the WLF Protocol.
WLFI red flags
The poor performance of the WLFI token sale might be due to the numerous warning signs that were previously pointed out.
Initially, as per the gold document, token holders are anticipated to gain profits exclusively through changes in the value of WLFI rather than partaking in profit-distribution schemes. Contrastingly, 75% of the total protocol earnings will be allocated to DT Marks DEFI LLC, a company led by Trump, which will also obtain 22.5 billion WLFI tokens. The remaining 25% will be granted to WC Digital Fi, who will receive 7.5 billion WLFI tokens in return.
Moving on, the team at World Liberty Financial consists of just two main members: Chase Herro and Zak Folkman. These individuals have a past association with Dough Financial, a DeFi protocol that unfortunately collapsed, causing substantial losses to investors. Notably, senior figures in this organization also include Eric, Donald Jr., and Barron, who are sons of former U.S. President Trump.
Thirdly, Following a cautionary statement from Galaxy Digital, the WLFI token sale has struggled to meet expectations. Galaxy Digital’s assessment suggested that the token was essentially an idea rather than a functioning protocol. Additionally, their analysis pointed out that the token offered no value accrual for a project that hadn’t yet materialized.
Furthermore, the majority of pre-sale tokens have struggled this year, as they have plummeted significantly just a few days following their distribution event.
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2024-11-11 18:22