Justin Sun Becomes Largest Stakeholder in Trump-Backed Crypto Project with $30 Million Investment
Justin Sun’s $30M investment makes him the largest stakeholder in Trump-backed WLFI, boosting DeFi growth.
WLFI’s token sale struggles are overcome with Sun’s investment, pushing it closer to its $300M target.Trump’s family strengthens crypto presence with WLFI, while Sun aims to expand blockchain adoption globally.
The CEO of the TRON blockchain platform, Justin Sun, has invested in the WLFI cryptocurrency project. Sun invested $30 million. This has made him the largest shareholder in the new firm.
This move comes as WLFI, a decentralized finance (DeFi) platform, struggled with slow token sales since its launch.
TRON Becomes the Largest Stakeholder in WLFIThe investment was made through a wallet linked to Sun’s HTX exchange, formerly known as Huobi. Prior to the investment, WLFI had aimed to sell $300 million worth of tokens but had only managed to sell $21 million.
Sun’s $30 million purchase now brings the total sales to $52 million, though still far from the $300 million target. With this acquisition, Sun is now the biggest backer of WLFI, marking a key turning point for the platform.
A Crucial Investment for WLFI’s FutureWLFI, introduced in September 2024, has faced several hurdles, including slow adoption rates. The project offers decentralized lending and borrowing services, supported by its governance token, WLFI.
The investment from Sun is seen as a boost, helping the project surpass the $30 million threshold required for DT Marks DEFI LLC, an entity affiliated with Donald Trump, to start receiving revenue from the token sales.
According to WLFI’s gold paper, Trump’s affiliated company will receive 75% of the project’s net revenues after the $30 million mark is reached.
Additionally, 337.5 million WLFI tokens are allocated to Trump’s company, further solidifying his involvement in the project.
Trump’s Growing Crypto Influence
Donald Trump, who was recently re-elected as President, has been making waves in the cryptocurrency space. Blockchain analytics firm Arkham reports that Trump holds over $5.4 million in cryptocurrencies.
Ethereum is his largest holding. His son, Eric Trump, and other family members are also involved, serving as Web3 ambassadors for the project.
Trump’s growing involvement in blockchain technology has raised interest in crypto among his supporters. Justin Sun, a well-known advocate for blockchain innovation, sees the U.S. as a hub for crypto development.
Challenges and Limitations for WLFIDespite the optimism surrounding Sun’s investment, WLFI faces significant challenges. The platform has been limited in terms of its token sale participation.
Only non-U.S. investors and accredited U.S. investors are eligible to buy WLFI tokens, which restricts the market. Additionally, the tokens are non-transferable, meaning buyers cannot resell them. T
hese factors have deterred some potential investors.
However, the platform has made strides in enhancing its security by adopting the Chainlink standard for on-chain data and cross-chain interoperability. This provides a layer of security and trust for investors.
