Led by the Trump family, the DeFi project - 'World Liberty Financial', originally hoped to leverage Trump's political halo to thrive, but the $WLFI token sale turned out to be cold, raising far less than the target. Now, the 'crypto prince' Justin Sun has made a big move by investing $30 million to support this lukewarm project, also redirecting the market's attention to this controversial project.
Trump family endorsement, but unable to ignite market enthusiasm
World Liberty Financial, a DeFi project fully supported by Trump and his three sons, is managed by a group of financial and cryptocurrency experts from Trump's circle, and has been in the spotlight since its launch in September this year.
The platform focuses on decentralized lending services and issues governance token $WLFI, originally expecting to raise $300 million through token sales, but due to investor demand falling short of expectations, the target was later significantly lowered to $30 million. Before Justin Sun stepped in to help, the project had only raised $21 million.
There are many reasons for World Liberty Financial's fundraising difficulties; one is that $WLFI tokens are only available for purchase by 'non-U.S. investors' and 'qualified U.S. investors'; furthermore, $WLFI tokens are 'non-transferable', which means investors cannot liquidate the tokens or exchange them for other assets for profit, thus limiting market enthusiasm.
In addition, according to the "Golden Book" released by World Liberty Financial, part of the proceeds from the token sale will flow to Trump's company, but income must exceed $30 million before Trump can start sharing profits; this threshold was still out of reach before Justin Sun bought the tokens.
Justin Sun steps in, boldly supporting with $30 million.
According to Etherscan data, at around 1 AM today (26), a wallet related to the cryptocurrency exchange HTX (Huobi) purchased $WLFI tokens worth $30 million.
The key figure behind HTX is none other than TRON founder Justin Sun, who later confirmed this matter 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 weak, but the strong support from Justin Sun 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 capitalize on this momentum to successfully support the 'crypto dream' created by this political maverick and become the next hot DeFi platform is worth close attention from the market.
"Trump DeFi project) WLFI token sale is cold, Justin Sun throws down $30 million to turn the tide" this article was first published on (Blockchain Fan).
