KEY POINTS
- Co-founder Zak Folkman revealed that 63% of WLFI tokens will be sold to the public
- Trump spoke about his initial doubts about crypto and how his children helped him turn toward the technology
- Some crypto users believe the project won’t do well, with one NFT enthusiast calling it a ‘scam’
Donald Trump Jr., Eric Trump, and their partners have officially launched World Liberty Financial (WLFI), the DeFi project that the sons of Republican presidential candidate Donald Trump first teased early in August.
The GOP frontrunner himself attended the virtual launch via X Spaces, wherein he spoke about his initial doubts about cryptocurrency and blockchain and his eventual transition to becoming a believer in the technology’s potential.
WLFI – A Crypto Banking Platform
Supporters of the project have been waiting for more details about what the DeFi project will actually do and what it can contribute to the movement of driving broader crypto adoption. Based on the founders’ explanations, it appears WLFI will be some type of a crypto banking platform where consumers can borrow, lend, and invest in digital assets.
Despite the unsettling events of yesterday, our X Spaces with Donald Trump will proceed as scheduled. We admire Mr. Trump’s courage to continue in the face of adversity. Join us for a pivotal discussion on the future of cryptocurrencyhttps://t.co/MQit7yx3tp
— WLFI (@worldlibertyfi) September 16, 2024
Token Shares Breakdown – 20% for Founding Team
The most important aspect of the launch was the discussion of WLFI’s shares allotment. According to the founders, including crypto veterans Zak Folkman and Chase Herro, as well as Steve Witkoff, a prominent real estate investor, the project will launch a governance token called WLFI.
The token will be launched under the SEC’s “Reg D” provision, which means the project can raise capital without first registering their securities with the regulator. There are certain conditions that a token issuer needs to meet under a Reg D token offering.
Folkman explained that 20% of the project’s tokens will be allotted to the founding members, while 17% will be dedicated to user rewards. The remaining 63% of the WLFI tokens will be sold to the crypto public.
The project’s equity structure came under fire ahead of the launch after a white paper reportedly circulated by Trump’s inner circle revealed that the founding team’s allotment was at 70%.
There were also early concerns about the project’s code purportedly having a striking similarity to the code of Dough Finance, which recently suffered a $2 million exploit.
Trump Talks Crypto’s Future
Trump, who, just a day earlier, was reported by the FBI to have been the subject of another assassination attempt, revealed that his children paved the way for his embrace of crypto.
He admitted that he wasn’t initially interested in digital assets, but things changed after his non-fungible token (NFT) collections were snapped up by blockchain users and paid for with cryptocurrencies.
JUST IN: 🇺🇸 Donald Trump says crypto “really has the chance to be something special.”
“It’s very young and very growing…I do believe in it.” pic.twitter.com/kbUQ8eJJ5v
— Bitcoin Magazine (@BitcoinMagazine) September 17, 2024
“Crypto is one of those things we have to do,” he said, adding that “whether we like it or not, we have to do it.”
He called out the “very hostile SEC,” aligning with complaints among crypto users who have criticized the Wall Street regulator for its enforcement-first approach to digital assets regulation.
Launch Draws Mixed Reactions from Crypto Community
The project’s launch was welcomed by many of Trump’s supporters, but not everyone in the crypto community was pleased.
Prominent NFT enthusiast @BAYC5511 called the project a “scam,” questioning why the venture opted for “non-transferrable governance.” He projected that WLFI “is going to end badly.”
The Bitcoin Podcast host Walker urged the crypto community to study BTC and “ignore this s***coin,” referring to the upcoming WLFI token.
WLFI has yet to provide the full tokenomics of its governance coin, and it has yet to provide clearer and more detailed explanations about the platform.
