The DeFi project led by the Trump family - 'World Liberty Financial' - originally hoped to leverage Trump's political clout to make significant strides, but to their dismay, the $WLFI token sale was tepid, raising far less than the target amount. Now, the 'prince of cryptocurrency' Justin Sun has invested $30 million to support this lukewarm project, redirecting market attention to this controversial initiative.
Backed by the Trump family, yet unable 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 within Trump's circle and has attracted attention since its launch in September this year.
The platform focuses on decentralized lending services and issues the governance token $WLFI, initially expecting to raise $300 million through the token sale, but due to investor demand falling short, the target was later significantly lowered to $30 million. Before Justin Sun came to assist, the project had only raised $21 million.
There are many reasons for World Liberty Financial's fundraising difficulties; one is that the $WLFI token is only available for purchase by 'non-US investors' and 'qualified US investors'; furthermore, the $WLFI token is 'non-transferable', meaning investors cannot liquidate the tokens or exchange them for other assets to profit, thus limiting market enthusiasm.
Additionally, according to the 'Golden Book' published by World Liberty Financial, part of the proceeds from the token sales will flow to companies affiliated with Trump, but revenues must exceed $30 million before Trump can begin to share profits; this threshold was still out of reach before Justin Sun purchased tokens.
Justin Sun steps in, generously supporting with $30 million
According to Etherscan data, around 1 AM today (the 26th), a wallet associated with the cryptocurrency exchange HTX (Huobi) purchased $30 million worth of $WLFI tokens.
The core figure behind HTX is TRON founder Justin Sun, who later confirmed this matter in a post and stated that TRON is the largest investor in World Liberty Financial.
Although backed by Trump's political appeal, WLFI's fundraising performance remains sluggish, but Justin Sun's strong support undoubtedly injects new energy into this project.
With Trump set to officially take office as President of the United States in January next year, whether WLFI can capitalize on this momentum and successfully support this political maverick's 'crypto dream' to become the next popular DeFi platform is worth close market attention.
