The former president and current Republican nominee plans to introduce WLFI, the token that goes along with his new cryptocurrency venture, World Liberty Financial, on Tuesday, the 13th.
TakeAway Points:
- The token for Donald Trump’s World Liberty Financial launches on Tuesday.
- The project’s co-founders announced during a Spaces event on Monday that 100,000 customers had been added to the list.
- World Liberty is positioned as a cryptocurrency bank that encourages users to lend, borrow, and invest in cryptocurrency.
WLF token
Over the weekend, Trump pumped the sale in a post on X, telling his followers that it’s a “chance to help shape the future of finance.”
Prospective investors can be forgiven for having little idea about what they’re being asked to support.
People involved with WLF have described it as a sort of crypto bank, where customers will be encouraged to borrow, lend and invest in crypto. No official white paper or formal business plan has been released to the public, and about all that’s been disclosed is that investing in the project will give users voting rights over the yet-to-be-launched WLF platform.
World Liberty Financial roadmap
In a roadmap given to prospective investors that was first viewed by The Block, the WLF proposal says the coin is looking to raise $300 million at a $1.5 billion valuation in its initial sale.
World Liberty Financial is separate and apart from Trump Media & Technology Group, the parent company of social media platform Truth Social. Trump Media, known by ticker symbol DJT, started trading in March, after going public through a special purpose acquisition company (SPAC). It’s been a rocky road for the stock, which peaked at close to $80 in late March before falling all the way down to $12.15 last month.
But since bottoming on Sept. 23, DJT shares are up close to 150% at $29.95, giving the company a market cap of $6 billion. That’s on revenue of less than $1 million a quarter and after the company lost more than $16 million in the latest period.
While DJT shares can be purchased by anyone, the digital coin WLFI will be a Regulation D token offering, following a provision that makes it possible to raise capital without first registering a security with the SEC. Certain conditions must be met, such as limiting the size of the sale and restricting it to accredited investors, defined in part as having a net worth of over $1 million.
Trump owns about 57% of DJT’s outstanding shares, but his potential control over World Liberty Financial is more opaque. WLF’s website, which is currently a landing page to register for know-your-customer verification to buy the coin, includes some of the fine print that indicates the financial incentive for the founders.
WLF’s token allocation
Co-founder Zachary Folkman, who previously had a company called Date Hotter Girls and reportedly helped develop crypto project Dough Finance, has said that 20% of WLF’s tokens would be allotted to the founding team, which includes the Trump family.
And there appears to be another way they can make money.
“DT Marks DEFI, LLC and its affiliates including Donald J. Trump and his family members has or may receive tokens from World Liberty Financial, and will be entitled to receive significant fees for services provided to World Liberty Financial, which amount cannot yet be determined,” the website says.
On Monday, less than 24 hours before the planned token launch, the WLF team convened a conversation on X Spaces to share details of the sale. About 12,000 people tuned in to listen to the more than hourlong chat about the overarching goals of the project.