On November 25, Justin Sun, the founder of the Tron blockchain, became the largest investor in World Liberty Financial (WLFI), a cryptocurrency project supported by former U.S. President Donald Trump. Sun's $30 million investment marks a significant turning point for WLFI, raising its total revenue to $52 million, or 17% of its original $300 million target.
The transaction involved the purchase of 2 billion WLFI tokens at $0.015 per token, carried out via a crypto wallet linked to the HTX exchange (formerly Huobi). Sun confirmed the investment on social media platform X, solidifying his involvement. Prior to Sun's contribution, WLFI had only garnered $20 million, far short of its ambitious funding goals.
According to the project’s internal "gold paper," Sun’s investment triggered a profit-sharing clause for the Trump family. 75% of net revenue will be allocated to Trump’s company, DT Marks DEFI LLC. Zak Folkman, WLFI’s co-founder, expressed optimism about the project's future, viewing Sun’s support as a positive indicator for further growth.
WLFI’s leadership team includes Donald Trump as its chief crypto strategist, with his sons Eric, Barron, and Donald Trump Jr. serving as Web3 ambassadors. The Trump family aims to position the U.S. as a global leader in blockchain, aligning with the former president’s commitment to making America the "crypto capital of the world."
However, WLFI faces significant challenges. Restrictions on investors, including limitations to non-U.S. citizens and certified U.S. investors, could hurt liquidity. Additionally, WLFI tokens are not easily transferable, potentially diminishing their appeal to potential buyers.
This investment comes amid ongoing legal issues for Sun and Tron in the U.S. In March 2023, the SEC sued HTX, alleging violations of securities laws, including the unregistered sale of TRX tokens and price manipulation. Despite these challenges, Sun continues to expand his influence, demonstrating the cryptocurrency sector's resilience and growth potential even in the face of regulatory hurdles.
