Former US President Donald Trump presented his crypto project World Liberty Financial (WLF), but its launch was unsuccessful. The project website could not cope with the influx of users, technically unable to withstand the load, which significantly limited the sale of the token, called WLFI.
Image source: worldlibertyfinancial.com
The project started with difficulties. The WLF platform, led by Trump and his family, launched a token sale on Tuesday, CNBC reported. And the day before, project co-founder Zachary Folkman said that “more than 100,000 people have signed up for investment.” However, the WLF website experienced regular and prolonged outages, limiting the number of sales. According to blockchain platform Etherscan, by Tuesday evening the tokens were in approximately 4,300 unique wallets, representing only 4% of the total number of registered buyers.
Throughout the day, users looking to buy a coin were constantly confronted with a message on the website: “We are undergoing maintenance.” In the end, the platform reported that more than 532 million tokens were sold at a price of 15 cents per piece. And this is less than 3% of the 20 billion tokens available for public sale. Experts note that the unsuccessful launch turned out to be very inappropriate for Trump in terms of image, because he is a candidate for the presidency of the United States from the Republican Party, and there are only three weeks left before the elections.
Image source: worldlibertyfinancial.com
Recall that Trump and his family have been actively promoting the project since August, and according to the roadmap presented to investors and first published on The Block website, WLF plans to raise $300 million at a project valuation of $1.5 billion during the initial sale, with 20% of the tokens WLF will be allocated to the founding team, including the Trump and Folkman family.
The WLFI token will be offered as part of a Regulation D offering, which will raise capital without first registering shares with the US Securities and Exchange Commission (SEC). However, certain conditions must be met, such as limiting the volume of sales and selling only to accredited investors whose wealth exceeds $1 million, as well as completing the process of obtaining project approval in the DeFi ecosystem.
WLF representatives also said that users will be encouraged to take out loans, make loans and invest in cryptocurrency. An official white paper or business plan has not yet been made public. What is known is that investors will have voting rights on the WLF.
It is noted that in recent days the crypto project was not the only problem associated with Trump’s investments. On Tuesday, shares of Trump Media & Technology Group, the parent company of social networking site Truth Social, fell nearly 10% in late trading after trading was temporarily suspended due to a sudden drop in shares.