Trump’s World Liberty Financial cuts crypto fundraising goal by 90% amid low demand
Trump’s World Liberty Financial cuts crypto fundraising goal by 90% amid low demand
In a significant setback for Donald Trump’s cryptocurrency venture, World Liberty Financial (WLF) has reduced its fundraising target by 90%, aiming to raise just $30 million instead of the initial $300 million. The move, highlighted in an Oct. 30 SEC filing, comes after a sharp drop in demand for WLF’s WLFI tokens, which have seen only $14 million in sales since the project’s October launch.
The company’s revised strategy raises questions about profitability, especially for Trump, whose affiliated entity DT Marks DEFI LLC is set to receive 75% of the company’s net protocol revenues only if the $30 million target is met. WLF’s ambitious start included a frozen 20 billion WLFI tokens with a $1.5 billion valuation. However, a lack of any built-in value accrual mechanism for WLFI has led to investor hesitation, compounded by uncertainty over WLF’s concrete business model.
Investor Hesitation and Token Value Questions
A Galaxy Digital research note highlighted concerns that the token's value would be challenging to sustain since it’s primarily a governance token over an undeveloped protocol. WLF has yet to clarify its future strategy beyond a potential stablecoin project and crypto-lending service, as the company’s website still lists the outdated $300 million target.
With Trump’s re-election bid nearing, the project’s future remains uncertain, and it remains unclear if WLF can generate the funds needed to bring its vision to life and provide Trump’s company the anticipated financial returns.
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