World Liberty Financial (WLFI), a DeFi project backed by the Trump family, plans to limit its token sales in the U.S. to $30 million in order to comply with market regulations, according to a recent report from Bloomberg, citing a legal filing by the project.
The company, running its business from Puerto Rico, has about $288 million worth of tokens available for sale and will market 90% of its token offering in offshore markets where regulatory scrutiny is less intense.
Trump Tokens
World Liberty Financial has raised approximately $2.7 million from fewer than 350 U.S. investors since launching its offering under Regulation D last month. Once U.S. sales reach the $30 million cap, the offering will be terminated.
Under Regulation D, the project is permitted to sell its tokens to accredited U.S. investors—those with a net worth exceeding $1 million. It is also required to provide detailed public notices about their offerings.
Zachary Folkman, World Liberty’s co-founder, said in a September interview that the project intended to sell its tokens to non-US investors under regulation S, which has fewer requirements.
Most token issuances are marketed offshore due to stringent U.S. regulations from the Securities and Exchange Commission (SEC), which views many cryptocurrencies as unregistered securities. The regulatory environment has led companies to favor foreign markets.
Another Platform
Co-founded by Folkman and Chase Herro, who also manage Axiom Management in Puerto Rico, World Liberty Financial is most known for its close ties to former President Trump and his sons. While backed by the Trump family, the project team has clarified that their inclusion does not imply they are officially promoting the offering.
The DeFi project aims to provide financial services that empower users to borrow, lend, and invest in digital currencies. Its governance token, WLFI, enables holders to participate in decision-making processes related to the platform’s operations.
However, the WLFI token is not tradeable. The project itself also faces skepticism due to the lack of concrete services it aims to provide.
World Liberty Financial could be seen as Trump’s second involvement in the cryptocurrency space, following his initial success with non-fungible tokens (NFTs).
Trump launched his first NFT collection, also known as “Trump Digital Trading Cards” in late 2022, featuring 44,000 NFTs, each priced at $99. The entire collection sold out in less than 24 hours after its launch.
Following that success, Trump launched a second series of NFTs in 2023, which also sold out quickly but faced similar criticism regarding their value and purpose.
The WLFI token offering comes at a time when Trump is actively campaigning for the 2024 presidential election. The former US President, who previously called Bitcoin a “scam,” has repositioned himself as a pro-crypto candidate. He has expressed a desire for the U.S. to become the “crypto capital of the planet” and a “Bitcoin superpower.”
Analysts suggest that a Trump win could benefit Bitcoin’s value and the broader cryptocurrency market. Trump’s crypto-friendly stance reinforces the perception that the U.S. regulatory environment will support crypto businesses under his administration, as opposed to the current administration’s perceived hostility.
The Next President?
The U.S. presidential race is entering its final chapter, and according to recent data from Polymarket, traders currently favor Donald Trump for the presidency. He currently leads the poll with 55% while Kamala Harris trails with odds around 33%.
However, Trump’s odds of winning the White House have dropped since peaking at approximately 67% last week. The change may reflect mixed sentiments and uncertainty ahead of Election Day.
Bitcoin also entered a sharp correction amid Trump’s odd decline. The largest cryptocurrency dropped below $68,000 over the weekend, wiping out its gains last month. It is now trading at around $69,100, up slightly over the past 24 hours.
