Donald Trump’s cryptocurrency project World Liberty Financial has confirmed plans to launch a governance token that will be available only to accredited investors.
After surviving a second assassination attempt, former President Donald Trump made his first public appearance in an interview with crypto influencer Farokh Sarmad during an Xspaces event on September 17, where members of the World Liberty Financial team unveiled the WLFI token to over 100,000 listeners.
The WLFI token will be sold under an exemption from Regulation D, which allows companies to raise funds without registering with the SEC, as long as they adhere to accredited investors or small private sales.
The decision is due to regulatory uncertainty surrounding token sales in the United States, where the Securities and Exchange Commission often treats tokens as securities, said Zack Folkman, one of the project’s founders.
Sales to US residents will require verification that they are accredited investors, while buyers outside the US may face other restrictions, though how they will participate remains unclear.
WLFI will be a non-transferable “pure governance token,” giving holders the ability to submit proposals and vote on issues related to the platform that promises to leave “slow, outdated banks behind.”
About 63% of the total token supply has been allocated to the public sale, with 17% going to user rewards and 20% going to the team and its advisors. While Volkmann did not disclose the total token supply, he said the distribution will be “incredibly fair,” adding that there will be no pre-sales or early buyouts with reduced allocations to venture capital.
The token launch date has not been revealed yet.
Trump silent on WLFI
Trump, who has previously raised the project on multiple occasions, refrained from discussing it directly but instead focused on broader topics related to crypto policy and the potential of digital assets within the US economy.
“Cryptocurrencies are one of those things that we have to do, whether we like it or not,” he said during his tenure as parliamentary speaker, adding that the sector was “big and yet nascent compared to what it will be.”
Other members of the Trump family weighed in on the discussion. Donald Trump Jr. said he sees DeFi as a way to bring “fairness to the financial system,” in line with what he believes “our founding fathers intended.”
Eric Trump joined the conversation, saying that DeFi needs to be more user-friendly, and shared his own struggles navigating decentralized platforms like Aave.
Concerns remain
As crypto.news previously reported, there were initial concerns that 70% of all WLFI tokens would be allocated to insiders, including Trump. However, with that number now set at 20%, those concerns have been somewhat alleviated, although some doubts remain about the security of the project, specifically the involvement of Chase Herro, one of the project’s leaders.
His most recent venture, Dough Financial, a lending platform similar to Aave, JustLend, and Spark, peaked at $3.2 million in assets before an exploit drained more than $2 million. Now, Dough is virtually inactive, with just $9,747 in total value locked up on each. Scroll.
To address security concerns, the WLFI team has hired top-tier security firms such as PeckShield, Zokyo, and BlockSecTeam to review and protect the platform. Furthermore, the team has It has been revealed. The project code has been thoroughly reviewed by these experts to prevent any security vulnerabilities.
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