WLFI Token Restricted to Accredited Investors Only
Donald Trump’s cryptocurrency project, World Liberty Financial, has announced its plans to launch a governance token exclusively for accredited investors. After surviving a second assassination attempt, the former president made his first public appearance in an interview with crypto influencer Farokh Sarmad. During the interview, the World Liberty Financial team introduced the WLFI token to an audience of over 100,000 listeners. The token will be sold under a Regulation D exemption, allowing the company to raise funds without registering with the SEC, as long as they target accredited investors or conduct small, private sales.
Zak Folkman, one of the project’s founders, explained that this decision was made due to the regulatory uncertainty surrounding token sales in the United States. The Securities and Exchange Commission often treats these tokens as securities, adding to the complexity of the situation. Sales to U.S. residents will require verification as accredited investors, while non-U.S. buyers may face different restrictions, although the specifics are still unclear.
The WLFI token is categorized as a non-transferable “pure governance token,” granting holders the power to make proposals and vote on platform-related matters. The platform aims to leave behind traditional banks that are often slow and outdated. Approximately 63% of the total token supply will be available for public sale, with 17% allocated for user rewards and 20% reserved for the team and advisors. While the exact token supply was not disclosed, Folkman assured that the distribution would be fair and transparent. He also emphasized that there would be no pre-sales or discounted allocations for venture capitalists.
The launch date for the token has not been revealed yet.
During the interview, despite teasing the project previously, Donald Trump did not directly discuss WLFI. Instead, he focused on broader topics related to cryptocurrency policies and the potential impact of digital assets on the U.S. economy. Donald Trump Jr. also participated in the discussion, expressing his belief that decentralized finance (DeFi) can bring fairness to the financial system, aligning with the intentions of the founding fathers. Eric Trump added that DeFi needs to become more user-friendly, sharing his own challenges with navigating decentralized platforms.
Although initial concerns were raised about the token allocation, including reservations for insiders like Trump, it has now been clarified that only 20% of WLFI tokens will be reserved for the team. This clarification has alleviated some concerns, but doubts still remain about the project’s security, particularly regarding the involvement of Chase Herro, one of the project’s leaders. Herro’s previous venture, Dough Financial, faced an exploit that drained over $2 million, causing the platform to become nearly inactive.
To address security concerns, the WLFI team has engaged top-tier security firms such as PeckShield, Zokyo, and BlockSecTeam to conduct audits and safeguard the platform. The project’s code has also been thoroughly reviewed by these experts to ensure there are no vulnerabilities.
In conclusion, Donald Trump’s World Liberty Financial project aims to launch the WLFI token exclusively for accredited investors. The project has taken steps to comply with regulations and address security concerns, while also focusing on the potential of digital assets and DeFi.
