Trump’s Crypto Project World Liberty Financial Debuts Plans to Sell WLFI Token

Highlights:

• World Liberty Financial, endorsed by the Trump family, will launch WLFI.
• WLFI will be SEC-regulated, non-transferable, and limited to accredited investors.
• The project aims to boost stablecoin adoption and the use of Aave-based credit systems.

Donald Trump’s entry into cryptocurrency is creating a buzz with the announcement that his eagerly awaited project, World Liberty Financial, is set to launch its WLFI token soon. The project’s team hosted a livestream on X spaces, where Republican presidential candidate Trump appeared the day after surviving a second assassination attempt to discuss his views on crypto and NFTs.

In a discussion with Farokh, the founder of the DAO-governed NFT media brand Rug Radio, Trump and the World Liberty Financial team talked about the launch of the “WLFI” token. Zak Folkman and Chase Herro, key figures in Trump’s World Liberty Financial, also joined the conversation.

According to Decrypt, the Trump family-related crypto project World Liberty Financial plans to provide cryptocurrency lending services on the Ethereum. The WLFI token sale will be regulated by the US SEC. 63% of WLFI tokens will be sold to the public, 17% will be used for user…

— Wu Blockchain (@WuBlockchain) September 17, 2024

WLFI Token Regulated by SEC, Sales Restricted to Accredited Investors

The World Liberty Financial team announced that the token will be regulated by the U.S. Securities and Exchange Commission (SEC), distinguishing it from many other digital currencies in the crypto space. The upcoming token sales will be limited to accredited investors and individuals outside the U.S.

The team stated:

“While we don’t consider WLFI to be a security, given the regulatory uncertainty surrounding tokens in the US, we’ve decided to limit sales to those eligible for exemptions under US federal securities law.”

WLFI is designed exclusively as a governance token for the World Liberty Financial platform. It grants holders voting rights without economic benefits such as dividends or profits. The tokens will also be non-transferable. The allocation is as follows: 63% to the public, 17% for user rewards, and 20% to the team and advisors. Although a significant portion is allocated to the public, limiting sales to accredited investors has faced criticism for restricting access, contradicting crypto’s original promise of open participation.

No specifics were provided about the World Liberty Finance platform itself. Reports indicate that it will function as a decentralized finance (DeFi) platform for borrowing and lending, similar to Dough Finance, which suffered a $1.8 million hack in July.

The draft of the white paper also referenced credit systems for borrowing and lending based on the well-known DeFi app Aave, which World Liberty Financial is reportedly “working with.” Additionally, the project aims to promote “mass adoption of stablecoins.”

Trump Claims SEC’s Crypto Stance Improved Due to His Involvement

During the livestream, rump delivered a strong message about the SEC and its stance on cryptocurrency. “Since the hostile SEC heard I was involved, they’re treating people much better,” he said.

Trump suggested that his involvement with the token and the crypto space has prompted a more favorable stance from the SEC toward crypto projects. However, he cautioned that this lenient approach might be temporary.

The WLFI token announcement marks a significant step in Trump’s bid to enter the crypto space. The project aims to offer investors greater security amid the volatility and legal uncertainty surrounding tokens by adhering to regulatory frameworks. Trump emphasized the need for a legal framework for cryptocurrencies in the U.S. to allow businesses to operate more freely. Further, he added, “If we don’t win the election, there will be a huge crackdown on crypto people. They will be living in hell.”