.png){kind=logo}
Former US President Donald Trump recently revealed that World Liberty Financial (WLF), his cryptocurrency company, will start selling WLFI tokens on Tuesday. This has enabled the political aspect to merge with the financial sector because this is the first time a US presidential candidate has come up with the idea of a crypto token sale.
The project is to employ the distributed ledger system for lending money without a direct connection to the financial organizations. The project is aligned with what Trump calls the “rigged” financial system to enhance access to financial services.
The WLFI token sale will be accompanied by a Twitter Spaces session set for Monday, during which members of the WLF team and their advisers will further explain the public sale.
For this reason, the project is developing to meet the rules of the Securities and Exchange Commission (SEC), distinguishing it from numerous cryptocurrencies that have historically evaded traditional regulatory frameworks.
The WLFI governance token will enable holders to approve various propositions relating to the WLFI’s matters. The sale is expected to attract both accredited U.S. investors and international participants. Currently, it has a market capitalization of $1.8 billion and plans to sell up to $537 million if all tokens are successfully sold.
The token distribution divides 30% of tokens for public sale and 70% for the company’s insiders. Furthermore, WLF has locked 7% of tokens and 20% of future fees for Aave Decentralized Autonomous Organization(DAO), signaling a partnership with an established player in the decentralized finance (DeFi) space.
Nonetheless, the WLF project may not have been able to tap into this potentiality because of the Trump administration’s earlier unfavorable view of Crypto assets. He has called Bitcoin a scam, which has stirred the community into wondering what made him shift from this perception to this newfound embrace of cryptocurrency. Observers note that this may be aimed at engaging his supporters in financial innovations or financial appeals before the presidential elections.
Some critics have questioned the purpose of the WLFI token since it was sold to the public just a few weeks before the election. Critics claim it might help prolong Trump’s campaign, while experts regard it as an effort to advance to a more progressive level of financial functioning.
In addition, there has been controversy regarding conflicts of interest, and with Trump as president, he is likely to exert pressure on the regulators in favor of his company. Another factor hindering the project's credibility is the inexperience of Trump’s relatives and associates, with whom he aimed to engage in business; most do not have adequate business backgrounds.
