Author: Danny Nelson, CoinDesk; Translation: Bai Shui, Golden Finance
According to a regulatory document, Donald Trump's cryptocurrency company World Liberty Financial has significantly reduced its fundraising target after its WLFI token sales fell far short of the initial goal.
The company currently plans to raise up to $30 million from investors, a 90% reduction from the $300 million World Liberty Financial initially sought. A U.S. Securities and Exchange Commission document dated October 30 states that World Liberty Financial plans to 'terminate' WLFI sales after reaching $30 million.
This change increases the possibility that former President Trump, who is set to campaign next week, may not receive any significant income from World Liberty Financial anytime soon.
According to public documents, an entity under Trump named DT Marks DEFI LLC will only receive 75% of the 'net agreement revenue' (including token sales) after World Liberty Financial raises $30 million in funds to support operations.
World Liberty Financial has been struggling to reach half of this goal. Since its launch in mid-October, its wallet has received over $14 million worth of cryptocurrency from investors buying the WLFI tokens. After an initial series of activities—including a period when the website crashed on the day of release—demand has sharply declined.
Weak demand may result from investors feeling uneasy about World Liberty's fundamentals. As noted in a research report by Galaxy Digital, the WLFI token does not have a mechanism for accumulating value. It is a governance token on a protocol that does not yet exist.
A document filed with the U.S. Securities and Exchange Commission on October 30 states that World Liberty Financial has 'non-transferable digital tokens' worth up to $288 million available for sale. The document states: 'The company currently only plans to sell tokens worth up to $30 million in this offering and then terminate sales.'
As of the time of publication, World Liberty's website indicated an old sales target of $300 million. The company has sold nearly 1 billion WLFI tokens out of 20 billion. They were sold at a valuation of $1.5 billion. However, the sold tokens remain frozen until further notice, meaning those who purchased WLFI cannot cash out in the secondary market.
Trump's company DT Marks DEFI LLC plans to acquire over 2.25 billion WLFI tokens worth more than $330 million at the valuation of World Liberty's public sale.
It is unclear what World Liberty Financial will look like. Its website describes a portal similar to accessing crypto investment opportunities. There are rumors of lending services being opened. Decrypt recently reported that World Liberty Financial plans to launch a stablecoin.