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Shares of the nascent social media business are in the midst of a sharp rebound and with the presidential election just three weeks away, Donald Trump The latest proposed monetization effort is being brought to market, this time in crypto.
On Tuesday, the former president and current Republican candidate plans to launch WLFI, a token to accompany his new crypto project called World Liberty Financial. Over the weekend, Trump pushed the sale In a message from Xtelling his followers that it is “an opportunity to help shape the financial future”.
Potential investors can be forgiven for having little idea of what they are being asked to help.
People involved with WLF have described it as a kind of crypto bank where customers will be encouraged to lend, borrow and invest in crypto. No official white paper or formal business plan has been released to the public, and all that has been disclosed is that investing in the project will give users voting rights over the yet-to-be-launched WLF platform.
It was on a roadmap given to potential investors First spotted by The BlockThe WLF proposal says the coin is looking to raise $300 million in its initial sale at a $1.5 billion valuation. CNBC reached out to WLF for comment, but did not hear back.
World Liberty Financial is distinct and exceptional Trump Media & Technology GroupThe parent company of the social networking platform Truth Social. Trump Media, known by the ticker symbol DJT, began trading in March after being floated through a special purpose buyout company (SPAC). It’s been a rocky road for the stock, which peaked near $80 in late March before falling to $12.15 last month.
But since it bottomed out on September 23, DJT stocks are up Close to 150% at $29.95, giving the company a market cap of $6 billion. That’s with less than $1 million in revenue for the quarter and after the company lost more than $16 million last quarter.
The Nasdaq Market is seen as shares of Truth Social and Trump Media & Technology Group begin trading under the ticker symbol ‘DJT’ on March 26, 2024 in New York, USA.
Shannon Stapleton | Reuters
While DJT shares can be purchased by anyone, the WLFI digital coin will be a Regulation D token offering, following a provision that allows capital to be raised without registering a security with the SEC. Certain conditions must be met, such as limiting the size of the sale and limiting it to accredited investors, some of whom have a net worth of more than $1 million.
Trump owns about 57% of DJT’s outstanding shares, but his control over World Liberty Financial is more opaque. WLF websiteWhat is now known as a signup landing page to verify your customer to buy the coin, includes some fine print that indicates a financial incentive for the founders.
Co-founder Zachary Folkman, who previously owned a company called Date Hotter Girls and reportedly helped develop the crypto project Dough Finance, said that 20% of WLF’s tokens will be allocated to the founding team, which includes the Trump family.
And there seems to be another way to make money.
“DT Marks DEFI, LLC and its affiliates, including Donald J. Trump and members of his family, may or may receive tokens from World Liberty Financial and will be entitled to receive significant fees for services rendered to World Liberty Financial, the amount of which has yet to be determined which is impossible,” the website says.
On Monday, less than 24 hours before the planned token launch, the WLF team called an interview to share details of the X Spaces sale. About 12,000 people tuned in to hear the over-an-hour chat about the main goals of the project.
Folkman he repeated Speaking at a previous Spaces event, he said the WLFI is a governance token that allows participants to vote on decisions about the protocol, including initiatives such as promotional partnerships. That token ownership “is not equity” and “does not represent an economic right.”
Folkman said the token sale will be held exclusively on World Liberty’s website, and only those who were whitelisted after registration will be able to participate. He said “over 100,000 people” are on the whitelist and it’s not too late to sign up. Folkman added that WLF would publish the project’s “long-awaited” roadmap on Tuesday, along with the token sale.
Last week, WLF began the process of accepting its crypto bank Aave into the decentralized finance (DeFi) ecosystem.
Aave is open source and one of the longest running and most trusted crypto lending platforms in DeFi.
“The protocol itself is permissionless, so I have less of an opinion on integrations, which is the whole idea of decentralized finance,” Aave founder Stan Kulechov told CNBC in an interview at the Permissionless Conference in Salt Lake City, Utah.
Kulechov joined Monday’s X event and said he is “delighted that the WLF uses and trusts Aave.”
“That’s a strong signal that what we build is quite useful, so we’re very excited,” he said.
in one 400 word post on Aave’s government forumThe WLF team presented a brief outline of its goals, which included promoting “DeFi to a wider audience through its marketing efforts” and “bringing in a new class of users for excessive borrowing and lending.” The proposal is currently in a reflection phase known as “Temp Check,” and Aave users can comment on the plan.
in the year comments sectionsome users expressed concern about the project’s deep ties to the Trump family.
“I believe this proposal puts the Aave protocol at great risk for little gain,” according to a since-deleted comment. The commenter then questioned the rationale behind being the “largest and most trusted DeFi protocol” to work with a “store-led team.” questionable origin … including several convicted criminals.”
Folkman helped start the WLF with longtime business partner Chase Herro. CoinDesk reported that the couple previously worked at Dough Finance, which was also built on top of Aave and a 2 million dollar pirate in July Herro also launched another crypto-trading business a decade ago called Pacer Capital, which now appears to be defunct.
In order for World Liberty to move forward, it must go through several rounds of reflection and approval, each one decided a vote among existing AAVE token holders.
At this stage of the process, the token sale is similar to an IOU. Buyers now have a claim to the token once the platform is approved and launched.
