Donald Trump Launches World Liberty Financial (WLFI) at $1.5B Valuation: All You Need to Know

Donald Trump Launches New Crypto Project

Former U.S. President Donald Trump launched the World Liberty Financial (WLFI) token on Tuesday, October 15, 2024 marking the first time a U.S. presidential candidate has introduced a crypto asset tied directly to their political campaign.

The WLFI token aims to revolutionize financial markets by leveraging decentralized finance (DeFi) and creating new financial opportunities for users worldwide.

While this token launch could provide much-needed campaign funding, its also makes Trump an active participant in the cryptocurrency space, going a step-further that his opposition, to symbolize his support for the industry.

Here’s all you need to know about Trump’s official WLFI crypto token sale.

What is World Liberty Financial (WLFI)?

World Liberty Financial (WLFI) is Donald Trump’s new cryptocurrency company, built to empower financial autonomy through decentralized banking. The WLFI token will function as a governance token for the platform, allowing holders to participate in decision-making and policy approvals related to the WLF project.

In terms of functionality, the WLFI will enable users to borrow, lend, and invest in on decentralized protocols, bypassing the need for the “rigged” traditional banking institutions.

The token itself is expected to have a market capitalization of $1.8 billion, with $537 million worth of tokens set to be sold during the initial offering. This makes it one of the most anticipated crypto offerings in 2024, particularly given Trump’s political influence and global profile.

How to Buy Donald Trump’s WLFI Token

100,000 Investors Whitelisted ahead of $300M Initial Sale

In preparation for the WLFI presale of its governance token on October 15, over 100,000 accredited U.S. investors have been whitelisted.

According to a public X spaces discussion held on Monday. The project’s presale aims to raise $300 million, which would place its valuation at $1.5 billion.

Additionally, Trump’s team has reserved 30% of tokens issued, worth $300 million for public sale, while the remaining 70% will be allocated for insiders and partnerships within the decentralized finance ecosystem​.

In the U.S., only accredited investors are authorized by the Securities and Exchange Commission to invest in unregistered securities such as pre-IPO shares.

Based on the current laws, accredited investors must meet specific income and net worth criteria, i.e. minimum of $200,000 in annual earnings and total assets over $1 million.

This regulatory requirement means that only accredited investors are eligible to participate in the sale, ensuring compliance with U.S. financial laws.

WLFI Utility, Partnerships and Token Governance

In terms of token Utility, WLFI will function as a governance token for the platform, allowing users to vote on protocol changes and take part in decentralized financial activities like borrowing, lending, creating liquidity pools, and transacting with stablecoins.

One of the most exciting aspects of the WLFI token is its integration into the DeFi landscape through partnerships with established entities like Aave, a leading decentralized lending platform.

Approximately 7% of the total WLFI token supply will be locked and earmarked for the Aave Decentralized Autonomous Organization (DAO). In return, WLF will offer 20% of the interest earned through its DeFi services to Aave users, encouraging wider participation in governance​

The governance mechanism is a central feature of the WLFI token, though it won’t provide direct economic benefits. Instead, it gives holders the power to vote on policy changes and proposals affecting the future of WLF. This emphasis on governance aligns with Trump’s campaign narrative of returning control to the people.

Political Context

The presale comes just three weeks before the 2024 U.S. Presidential Election, where Donald Trump is the Republican candidate.

After expressing skepticism about the sector in previous years, Trump made a U-turn as his 2024 campaign trail began, delivery multiple public speeches in support of the industry.

Trump’s embrace of Bitcoin and digital assets may be a strategic move to attract younger, tech-savvy voters and financiers looking for innovative investment opportunities​.

At the time of writing on Oct 15, Trump has emerged the frontrunner to win the November elections. According to Polymarkets, a crypto-based prediction market platform, Trump is currently in the lead, with 57.2% against Kamala Harris in a distant second position with 42.1% of votes among crypto bettors.

Critics have raised concerns about potential conflicts of interest, given Trump’s ongoing political ambitions. Some speculate that the WLFI token sale may be tied to his campaign funding strategy, while others question the involvement of his family members, some of whom have limited experience in the financial sector​.

Opportunities

While the WLFI token launch has generated significant buzz, there are several challenges on the horizon.

• Improved Crypto regulatory stance: the regulatory landscape in the U.S. remains uncertain for cryptocurrency projects. The SEC has recently cracked down on multiple cryptocurrency companies for regulatory violations, which could pose a threat to the long-term viability of WLFI.

However, Trump’s own influence over financial regulators, should he win the 2024 election, could ease regulatory tensions, potentially providing WLF with a smoother path forward.

• Deepening crypto adoption: Another key factor will be whether WLFI can gain mainstream adoption in the coming months. The project is centered on promoting U.S.-pegged stablecoins and pushing the U.S. dollar as the global settlement currency within the DeFi space.

In general, Trump’s involvement with WLFI’s could reshape the public sentiment around cryptocurrency. It symbolizes the growth and maturity of the sector, once known global wild-wild-west of finance.

Major Concerns

Nevertheless, the political implications of this move are not without controversy.

• Conflict of Interest: Critics have raised concerns about potential conflicts of interest, particularly regarding the WLFI token sale and its connections to Trump’s ongoing political ambitions.
• Campaign Funding Controversy: Some speculate that proceeds from the token sale could be funneled into his campaign, blurring the lines between political fundraising and financial innovation.
• Team Technical Experience: Additionally, concerns have been raised about the involvement of Trump’s family members in the project, particularly given their limited experience in the financial sector.

Does Donald Trump Own Crypto?

Donald Trump has deepened his involvement in the cryptocurrency over the years. He first dabbled in the space through the launch of his own NFT collection in December 2022, offering digital cards showcasing iconic moments from his life.

As the motion around the 2024 Presidential campains grew, Trump has been associated with several memecoins, including DJT Coin, Trump Coin, and MAGA Coin. However, these memecoins were primarily created by supporters or those seeking to capitalize on his brand.

However, his role in these projects has been peripheral, mostly limited to being a figurehead. WLFI is the first token the Trump has officially confirmed and promoted during his campaigns.

As of October 15, 2024, Trump’s publicly disclosed wallet, holds a crypto portfolio valued at over $6.7 million, with a significant portion of these assets held in Ethereum (ETH) and Wrapped Ethereum (WETH), totaling over $2.5 million.

His other notable holdings include MAGA Coin, his largest memecoin stake, as well as Trump Coin and a variety of DeFi-related assets like USDC. His investments reflect a broader engagement with DeFi, potentially signaling future involvement in blockchain-based governance.

Looking Ahead:

Trump’s venture into the crypto world follows his earlier foray into NFTs and the revelation that he holds Ethereum (ETH) on a public wallet. He has promised to make the U.S. a global hub for Bitcoin and cryptocurrencies if re-elected, a stance viewed as bullish for the industry compared to Democrat Kamala Harris, who is perceived as less supportive of digital assets.

Whether WLFI succeeds or falters, Trump’s involvement in crypto could accelerate mainstream adoption of cryptocurrencies globally.

FAQs

1. What is the WLFI token?
WLFI is the governance token for World Liberty Financial, a DeFi project launched by Donald Trump.

2. Who Owns WLFI ?

The WLFI project is led by Trump, who serves as its “chief crypto advocate,” with his sons, Eric Trump and Donald Trump Jr., acting as “web3 ambassadors.” Trump’s youngest son, Barron, is also involved, holding the title of “DeFi visionary.”

2. When does the token sale start?
The WLFI token sale is set to begin on October 15, 2024.

3. Who can participate in the sale?
The sale is open to accredited investors in the U.S. and internationally, under a Regulation D exemption from the SEC.

4. What is the role of the WLFI token in governance?
WLFI token holders can vote on key governance issues related to World Liberty Financial’s DeFi platform, but they will not receive direct financial benefits from holding the token.

5. What are the political implications of WLFI?
Trump’s involvement in the crypto space is seen by some as a strategic move to engage voters and financiers ahead of the 2024 U.S. presidential election.

This ambitious move ties Trump’s financial goals to his political aspirations, adding a new layer of intrigue to the upcoming election season.