News

World Liberty Financial Forced to Lower Fundraising Level by 90%

Key Points:

World Liberty Financial, Donald Trump’s crypto venture, cut its fundraising target from $300 million to $30 million due to low demand.
Limited token utility, mandatory KYC requirements, and trading restrictions have deterred investors, and critics have highlighted a lack of innovation in the project’s DeFi offerings.

World Liberty Financial, a cryptocurrency company with ties to former President Donald Trump, has drastically reduced its fundraising expectations after the company fell well short of early sales targets for its WLFI token, CoinDesk first reported the news.

World Liberty Financial Cuts Fundraising Expectations 90% as Demand Sags

According to a regulatory filing, the project plans to raise $30 million instead of the $300 million target initially established, a 90% drop in expected funds raised.

Several reasons have been ascribed to this slow performance. The token of World Liberty Financial, WLFI, offers very limited utility beyond governance. Hence, it offers few near-term incentives for potential buyers. Also, token buyers are asked to pass the KYC verification-a measure that may have restricted investor interest.

Moreover, there are some trading restrictions on the WLFI token, such as the 12-month holding period, which makes it even less appealing in a highly speculative market.

Trump’s Pro-Bitcoin Stance Amid Crypto Project Setbacks

Documents show that the Trump-owned DT Marks DEFI LLC is set to receive 75% of “net protocol revenues,” which include proceeds from token sales, but this is only after World Liberty Financial has reached the $30 million mark in fundraising. Trump’s entity is also supposed to get 22.5 billion WLFI tokens, at an initial valuation of approximately $337.5 million based on the price per token at $0.015.

This financial structure has raised eyebrows, as some community members blasted the huge potential earnings the Trump family will make off the project. Following these revelations, Trump, who is facing a key election next week, reaffirmed his pro-crypto position.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.