World Liberty Financial, a cryptocurrency backed by Donald Trump has faced significant difficulties. It raised only $11.8m in its first 24h, far short of the $300m fundraising target at a valuation of $1.5bn.
WLFI is a token designed to be used as a voting tool on the platform.
The project is facing significant obstacles, however, as it has only 9,050 wallet addresses compared to an estimated 100,000 investors.
Why WLFI’s ambitious goals have not materialized
Zachary Folkman (co-founder of WLFI) previously expressed his optimism regarding the anticipated popularity of the project and the number whitelisted investors.
WLFI hasn’t launched as expected. Etherscan data shows a large discrepancy in the number of investors who are whitelisted and those that have bought tokens.
Only 9% of projected investors has participated so far, leaving this project well short of its target $300 million.
Technical problems halt WLFI Token sale
The technical problems are responsible for a large part of this disappointing launch.
The exclusive marketplace of WLFI was repeatedly down during its launch, displaying a message “We Are Under Maintenance” to potential investors.
Many potential buyers were frustrated by these issues, as they could not access the platform at any time.
World Liberty Financial also hasn’t released a white paper, or formal business plan. This leaves many potential investors in the dark about World Liberty Financial’s vision for long-term success.
WLFI’s Regulation D status is another significant challenge.
The regulation permits projects to raise funds without having securities registered with the US Securities and Exchange Commission. However, it has strict requirements which limit the number of investors.
The market for WLFI is significantly reduced by the fact that only accredited investors, those with a total net worth of more than $1 million can participate. This could explain why WLFI has not attracted as many investors as expected.
Limited voting opportunities for WLFI token holders
The cryptobank associated with the digital currency is currently in development, so token holders cannot vote at this time.
Aave is the leading crypto-lending platform and is currently reviewing the platform. Until this approval is granted, holders of WLFI are only left with promises about future use.
Many investors are hesitant because of this uncertainty, since the token value is speculative in the absence of a working platform.
The path towards recovery is still unclear despite Donald Trump’s support.
WLFI was criticized for its lack transparency. It did not release a white paper nor a comprehensive business plan.
The fine print of World Liberty Financial website also indicates that Trump’s family could receive substantial tokens or fees for the project. This raises concerns over potential conflicted interests.
The ICD published this post Trump’s WLFI crypto launch fails, raising only $11.8M due to technical challenges.
