Trump’s Crypto Coin Available Ahead of Election Day

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With shares of his burgeoning social media enterprise experiencing a significant recovery and with the presidential election just three weeks away, Donald Trump is introducing a new financial venture in the cryptocurrency space. On Tuesday, the former president, who is the current Republican nominee, plans to unveil WLFI, a token associated with his new crypto initiative named World Liberty Financial. Over the weekend, Trump promoted the token sale in a post on X, suggesting it offers followers an opportunity to influence the future of finance.

Details regarding the project’s offering remain scarce, leaving potential investors unclear about what exactly the venture entails. According to individuals affiliated with World Liberty Financial (WLF), the venture is likened to a crypto bank, encouraging users to engage in borrowing, lending, and investing in cryptocurrency. Despite this description, no white paper or comprehensive business plan has been shared publicly, with disclosed information limited to the proposal of granting users voting rights within the not-yet-launched WLF platform upon investment.

As revealed in a roadmap provided to potential investors and initially reviewed by The Block, the WLF endeavor aims to raise $300 million for an initial valuation of $1.5 billion. While CNBC attempted to confirm details with WLF, no response was received. World Liberty Financial exists independently of Trump Media & Technology Group, the parent company of Truth Social. This media entity, represented by the ticker symbol DJT, began public trading in March following a merger with a special purpose acquisition company (SPAC). The stock has experienced fluctuations, peaking near $80 in late March before dropping to $12.15 last month. However, since hitting a low on September 23, DJT shares have surged by nearly 150%, reaching $29.95, granting the company a market capitalization of $6 billion, despite quarterly revenues below $1 million and a recent loss exceeding $16 million.

Unlike the widely accessible DJT shares, the WLFI digital token will be available as a Regulation D offering, a provision that permits capital raising without prior SEC registration, provided specific criteria are met. These include limiting the offering size and restricting participation to accredited investors, partially defined as having a net worth exceeding $1 million.

Trump’s governance over World Liberty Financial remains ambiguous, though he owns approximately 57% of DJT’s outstanding shares. The WLF website currently serves as a portal for registering know-your-customer verification to purchase the token, highlighting the founders’ financial incentives. Co-founder Zachary Folkman, associated with prior ventures such as Date Hotter Girls and the Dough Finance crypto project, stated that 20% of WLF’s tokens would be allocated to the founding team, which includes the Trump family. Moreover, the site’s fine print indicates potential compensation for services provided by DT Marks DEFI, LLC and its affiliates, including Donald J. Trump and his family members, through tokens and significant yet-to-be-determined fees.

On Monday, shortly before the planned token launch, the WLF team hosted a discussion on X Spaces, elaborating on the sale to an audience of about 12,000 people. Folkman reiterated previous statements, describing WLFI as a governance token enabling holders to vote on protocol-related decisions such as promotional partnerships. He clarified that token ownership does not equate to equity or economic rights. The token sale will occur solely on World Liberty’s website, accessible only to individuals whitelisted after signing up, according to Folkman. More than 100,000 individuals are reportedly on this whitelist, and registration remains open.

Simultaneously, WLF has begun the approval process to establish its crypto bank within the decentralized finance (DeFi) ecosystem of Aave, known for its reliability as a long-standing crypto lending platform. Stani Kulechov, Aave’s founder, expressed enthusiasm about WLF’s reliance on Aave’s infrastructure during the Monday event.

The WLF team presented a brief proposal on Aave’s governance forum, highlighting goals to promote DeFi to broader audiences through marketing efforts and introducing new users to over-collateralized borrowing and lending. The proposal is currently undergoing preliminary consideration, with Aave users invited to comment on the plan, although concerns have been raised about the project’s strong connections to the Trump family.

For World Liberty to proceed, it requires a series of approvals, each subject to voting by current AAVE token holders. At this phase, the token sale functions similarly to an IOU, granting buyers a potential claim to the token should the platform receive eventual approval and launch.

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