Donald Trump’s crypto company, World Liberty Financial, has decided to significantly reduce its fundraising goal after facing challenges with the sales of its WLFI tokens. The company had initially aimed to raise $300 million but has now cut back to a target of $30 million. This decision comes as the sales of the WLFI token fell far short of expectations, with the company struggling to reach even half of its initial goal.
The change in fundraising goal raises concerns about the potential payday for former President Trump, who is currently running for election. Trump’s entity, DT Marks DEFI LLC, is set to receive 75% of “net protocol revenues” from World Liberty Financial, but this will only happen once the company reaches the $30 million mark. So far, the company has only managed to raise just over $14 million since its launch in mid-October.
Investors seem to be hesitant about World Liberty Financial’s fundamentals, as pointed out in a research note from Galaxy Digital. The WLFI token does not have a mechanism to accrue value, as it is a governance token over a protocol that is not yet in existence. This lack of clarity may be contributing to the lackluster demand for the token.
The company still has up to $288 million worth of “nontransferable digital tokens” available for sale, but it currently plans to sell tokens only up to $30 million before terminating the sale. The website still reflects the old sales target of $300 million, but the company has only sold a small fraction of the available WLFI tokens.
It is unclear what exactly World Liberty Financial will offer, as its website describes it as a portal for accessing crypto-investment opportunities, with plans for a borrow-and-lending service and the launch of a stablecoin. However, with the struggles in token sales and investor demand, the future of the company remains uncertain.
Representatives for World Liberty Financial have not provided any comments on the situation. It remains to be seen how the company will navigate these challenges and whether it will be able to achieve its revised fundraising goal. The cryptocurrency industry is known for its volatility, and companies in this space often face obstacles in achieving their targets. Only time will tell what the future holds for World Liberty Financial and its ambitious goals.
