What happened?
The decentralized finance platform World Liberty Financial (WLFI), supported by Trump, had a slow start, with investors purchasing WLFI tokens at prices far below the project's expectations.
On November 25, 2024, Tron founder Justin Sun announced the purchase of $30 million worth of WLFI tokens, becoming the largest investor in the project.
Despite the support of the Trump family and Justin Sun's significant investment, World Liberty Financial still needs to overcome numerous challenges to achieve its scale expansion and market leadership.
Justin Sun invested $30 million, becoming the largest investor in WLFI.
On November 25, 2024, Tron founder Justin Sun announced an investment of $30 million to purchase WLFI tokens from the decentralized finance platform World Liberty Financial, becoming the largest investor in the project.
According to on-chain data platform Etherscan, this transaction came from Justin Sun's cryptocurrency exchange HTX, purchasing approximately 2 billion WLFI tokens at a price of $0.015 per token.
This investment brings WLFI's total sales to $52 million, but it is still far below its sales target of $300 million.
Justin Sun stated on Twitter, 'We are pleased to invest $30 million in World Liberty Financial as the largest investor.'
The participation of the Tron founder is undoubtedly a major support for the WLFI project, especially given the project’s poor sales performance in its early stages. This investment also marks the first time Trump and his family will receive a share of the project sales.
According to WLFI's 'Gold White Paper', Trump's company DT Marks DEFI LLC will start receiving 75% of sales revenue once WLFI's sales exceed $30 million.
What is World Liberty Financial doing?
The decentralized finance platform World Liberty Financial (WLFI), supported by Trump, officially launched in September 2024, offering decentralized lending services and governance through its native token WLFI.
Trump serves as the 'Chief Crypto Advocate' on the platform, while his three sons serve as 'Web3 Ambassadors', showing the Trump family's commitment to this emerging market.
However, this project faced sales difficulties at the beginning of its listing, with WLFI token sales performance falling far short of expectations. Although the initial sales target was set at $300 million, by mid-November 2024, only $21 million worth of tokens had been sold, which is quite slow for such an ambitious project.
One of the reasons for the underperformance is that the sale of WLFI tokens is subject to multiple restrictions, including allowing participation only from non-U.S. investors and U.S.-recognized investors. Additionally, these tokens are also non-transferable, meaning that buyers cannot sell them, further diminishing investor interest.
Nevertheless, the project still emphasizes its goal of creating a fairer and more open financial platform and intends to promote the development of a free market.
How will the WLFI platform impact the cryptocurrency market? Can the collaboration between Trump and Justin Sun lead to breakthroughs?
One of the founders of World Liberty Financial, Zak Folkman, stated that Justin Sun's substantial investment represents the preliminary success of the project and noted that several important transactions have recently taken place, which gives him confidence in the project's future.
He emphasized that WLFI aims to establish a more free and fair financial system and will continue to work towards this goal.
However, the outlook for the WLFI project remains challenging. Despite gaining support from Justin Sun, the platform still needs to overcome the uncertainties of the cryptocurrency market and address external risks such as regulatory issues.
Justin Sun himself is also facing a lawsuit from the U.S. Securities and Exchange Commission (SEC), accusing him of unregistered offerings and sales of TRX tokens and alleged market manipulation. In addition, the WLFI project needs to address how to expand its market appeal and overcome restrictions such as the inability to transfer tokens in order to achieve its long-term goals.
Overall, the WLFI project is still in its early development stage, and despite the support from the Trump family and Justin Sun's substantial investment, it still needs to overcome significant challenges to achieve its scale expansion and market leadership.
References: cointelegraph, coindesk
