Sales surge in Trump-backed World Liberty Financial market – DL News

Donald Trump’s victory in the US presidential election was a boon for financial markets: the S&P 500 is on a tear and Bitcoin price hits all-time highs Elevations On three consecutive days.

But there has been a notable delay: Trump’s own cryptocurrency project, World Liberty Financial.

Since the election, the company’s cumulative earnings from sales of its token, WLFI, rose 4% to $15.4 million, according to Data On the dune. However, the token itself cannot be traded on secondary markets.

This represents the token’s best three-day performance since its launch in October. But it’s a far cry from the rest of the cryptocurrency market, which has jumped nearly 11% since US Election Day on November 5.

This refers to the president-elect Pro-encryption stance The deep ties to the project did little to overcome the factors that limited its appeal to investors.

Trump and his sons promoted the company on social media, and a picture of the president-elect appeared prominently on its website. He and his family own the rights to hundreds of millions of WLFI tokens as well as 75% of any revenue generated by World Liberty.

Neither Trump family members founded nor own the company, according to a disclaimer on the website. Instead, Trump is listed as an “attorney” and his three sons, Eric, Donald Jr. and Barron, as “ambassadors.”

Despite the support of one of the most famous men in the world, the project was a failure.

The company aims to sell $300 million worth of tokens, according to a roadmap shared with potential investors Reviewed By mass.

but lukewarm interest Which forced her to reduce those ambitions. World Liberty only plans to sell $30 million worth of tokens before “terminating” the sale, according to a regulatory decision issued on October 30. Deposit.

WLFI has several factors that limit its appeal. Notably, it is unclear whether the token will have a monetary value at all.

WLFI tokens will be “locked” until investors vote to enable trading, according to the “goldpaper” — a Trumpian spin on the cryptocurrency practice of issuing white papers that provide an overview of new products.

Furthermore, only accredited investors who meet certain financial criteria are allowed to purchase the World Liberty token.

So-called governance tokens such as WLFI are used in cryptocurrencies to distribute project ownership and control among investors.

However, WLFI holders will have relatively limited control. They have no say in the operation of the company itself, but will be able to vote on upgrades to its core technology.

According to the gold leaf, the company will provide “information and access to third-party DeFi applications.”

This includes non-custodial cryptocurrency wallets, lending pools, and lending and borrowing protocols. Aave, the lending protocol, will be the first protocol that World Liberty users will have access to.

Alex Gilbert is a New York-based reporter covering decentralized finance. You can contact him at aleks@dlnews.com.