More than two hours into former President Donald Trump’s World Liberty Financial (WLFI) launch event on X Monday night, key details about the project’s token allotment were finally revealed. The Trump family’s new crypto venture anticipates serving as a crypto banking platform where users can borrow, lend, and invest in WLFI tokens. Founders, including Trump, will receive 20% of the tokens, with 17% reserved for user rewards and 63% available for public purchase, avoiding pre-sales or early buy-ins. This new structure contrasts an earlier leaked draft that allotted 70% to founders, raising concerns of a potential get-rich-quick scheme.
The token’s Reg D offering adheres to SEC’s Regulation D, allowing fundraising without registration. Trump criticized the SEC’s regulatory stance, reflecting industry frustrations with Chair Gary Gensler. Loyalists in the sector remain cautious, fearing this venture’s risks.
Trump’s stance on crypto shifted after successful nonfungible token sales, catalyzed by his sons’ interest, leading to nine months of project development. The leadership team includes Trump’s sons, Steve Witkoff, and other key figures, although Bloomberg notes the platform isn’t managed by the Trump family directly.
During Monday’s event, Witkoff recounted initiating the Trump family’s involvement, emphasizing decentralization’s potential to aid those unable to access credit. Despite prior media teasers and a guarded white paper release, material specifics remained elusive, with NDAs required for deeper insights. Amid notable industry endorsements, Trump’s alignment with crypto is seen both as a strategic move and a potential risk if the project falters. For now, Trump’s involvement appears limited, pending the project’s success and broader industry reception.
Original Story https://www.cnbc.com/2024/09/16/trump-crypto-world-liberty-financial.html
Category :
Tags:
