Trump-Backed WLFI Token Sale Raises $12M in 24 Hours, Falls 96% Short of $300 Million Goal
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WLFI Token Sale Faces Setbacks Amid Technical Issues
World Liberty Financial’s (WLFI) highly anticipated token sale, endorsed by former U.S. President Donald Trump, has struggled to gain traction since its October 15, 2024, launch. Trump, serving as "Chief Crypto Advocate" with his sons Barron, Eric, and Donald Jr. as "Web3 Ambassadors," positioned the project as part of the future of decentralized finance (DeFi).
While his involvement generated significant buzz, skepticism within the crypto community has grown, particularly as the sale’s performance fell short of expectations. Despite a goal to raise $300 million through the sale of 20 billion tokens priced at $0.015 each, the project managed to raise only $12 million by October 16, a mere 4% of its target. This leaves 96% of the tokens still available, with enthusiasm dampened by ongoing technical challenges.
The WLFI platform’s technical issues were a major contributor to the slow sales. During the first hour of the sale, the website crashed due to an overwhelming influx of 72 million unique visitors, leading to multiple outages. Potential investors were unable to access the platform for extended periods, and there were stretches of over eight minutes without any token sales on launch day. This technical instability raised serious concerns about the viability of the project.
Although the project claimed 100,000 wallets were whitelisted for the sale, fewer than 10,885 participated in the first 24 hours, and by October 16, only 9,377 wallets held WLFI tokens, signaling a sharp decline in anticipated interest.
Investors and industry figures voiced doubts about the long-term potential of WLFI, with some labeling it a risky endeavor. Critics like Mark Cuban and Alex Miller, CEO of Hiro, expressed concerns over the project’s authenticity and Trump’s understanding of the crypto space. Bitcoin advocate Max Keiser went so far as to suggest that Trump had “failed the Bitcoin IQ test,” casting further doubt on the former president’s grasp of the technology.
Despite this, Trump’s political influence remains intact, with reports showing him leading Vice President Harris by 10 points in the U.S. presidential race, suggesting that his endorsement of the token may still have the potential to boost its visibility.
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WLFI Token Sale Falters Despite Trump's Endorsement
Initially, WLFI planned to allocate 35% of its 100 billion token supply for sale, but they reduced it to 20 billion. This, combined with the 12-month non-transferability of the governance tokens, has severely limited the liquidity of WLFI, further diminishing investor confidence. The token, designed to allow holders to vote on platform changes, has failed to garner the widespread adoption its backers had hoped for.
World Liberty Financial submitted a proposal to integrate Aave v3, a leading DeFi lending protocol, on Ethereum. The integration, aimed at supporting loans and deposits in major stablecoins and digital assets, includes plans to distribute 7% of WLFI tokens to the AaveDAO and 20% of fees generated by the platform.
While the Aave community responded positively to the proposal, the broader struggles of the project could impact its potential success. The token sale’s exclusion of U.S. citizens—except accredited investors—has further limited the buyer pool, adding to concerns over the token’s appeal.
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Crypto commentators widely agree that the WLFI token sale failed due to its lack of innovation and transparency. dYdX Trading’s Rashan Colbert criticized the project for being politically driven without offering any real value, while Two Prime CEO Alexander Blume pointed out that it reused code from a previously hacked project, adding to the community's skepticism.
Rumi Morales from Outlier Ventures highlighted the rushed nature of the project’s gold paper, suggesting the team underestimated the crypto community’s sophistication. Bitwise’s Matt Hougan concluded that a personality-driven DeFi project contradicts the core principles of decentralized finance.
Despite the hurdles, Trump’s involvement in the crypto space continues to make waves. His push for WLFI, although faltering, has coincided with a 15% increase in Bitcoin’s price during October, underscoring the market influence that his presence can still exert.
Yet, with mounting doubts and technical problems plaguing WLFI, the future of the project remains uncertain, casting a shadow over its ambitions in the rapidly evolving DeFi landscape.
This article has been refined and enhanced by ChatGPT.
