The DeFi project led by the Trump family — 'World Liberty Financial', originally hoped to leverage Trump's political aura to make a big impact. However, the $WLFI token sale cooled off, raising far less than the target. Now, crypto 'wealthy prince' Justin Sun has invested $30 million to support this lukewarm project, bringing the market's attention back to this controversial project.
Backed by the Trump family, yet failing to ignite market enthusiasm.
World Liberty Financial, a DeFi project fully supported by Trump and his three sons, is operated by a group of financial and cryptocurrency experts from Trump's circle and has been under the spotlight since its launch in September this year.
The platform focuses on decentralized lending services and issues governance token $WLFI. Initially, they hoped to raise $300 million through the token sale, but due to lower than expected investor demand, they later significantly lowered the target to $30 million. Before Justin Sun's assistance, the project had only raised $21 million.
There are many reasons for World Liberty Financial's slow fundraising, one of which is that $WLFI tokens are only available for purchase by 'non-U.S. investors' and 'qualified U.S. investors'. Additionally, $WLFI tokens are 'non-transferable', meaning investors cannot liquidate or exchange the tokens for other assets to profit, thus limiting market enthusiasm.
Additionally, according to the "Golden Book" released by World Liberty Financial, part of the proceeds from the token sale will flow to companies under Trump, but income must exceed $30 million before Trump can start sharing profits. This threshold remained out of reach before Justin Sun purchased the tokens.
Justin Sun steps in, generously supporting with $30 million.
According to Etherscan data, at around 1 AM today (26th), a wallet associated with the cryptocurrency exchange HTX (Huobi) purchased $30 million worth of $WLFI tokens.
The key figure behind HTX is Justin Sun, the founder of TRON, who later confirmed this in a post, stating that TRON is the largest investor in World Liberty Financial.
We are thrilled to invest $30 million in World Liberty Financial @worldlibertyfi as its largest investor. The U.S. is becoming the blockchain hub, and Bitcoin owes it to @realDonaldTrump! TRON is committed to making America great again and leading innovation. Let's go! pic.twitter.com/cISTsVYP1f
— H.E. Justin Sun (@justinsuntron) November 25, 2024
Although backed by Trump's political appeal, the fundraising performance of $WLFI remains sluggish. However, Justin Sun's strong support undoubtedly injected new momentum into this project.
As Trump is set to officially take office as President of the United States in January next year, whether WLFI can take advantage of this momentum to succeed and support the 'crypto dream' created by this political maverick, and become the next popular DeFi platform, is worth close attention from the market.
"Trump DeFi project $WLFI token sale cools off, Justin Sun splurges $30 million to turn the tide". This article was first published on (Block Customer).
