Trump-backed World Liberty Financial launched its WLFI token on Tuesday. However the project website is often offline.
World Liberty Finance, a crypto project backed by former President Donald Trump, crashed several hours after it began selling its token to accredited investors on Tuesday.
World Liberty started the token sale after midnight UTC. As of noon New York time, more than 3,200 crypto wallets held the token, according to Blockchain. data.
But it has struggled to stay online since launch. Attempts to access the website on Tuesday typically returned a “down for maintenance” message.
The token is only available to accredited investors who meet certain financial criteria. According to World Liberty representatives who spoke live Forum Hosted on Monday X, more than 100,000 accredited investors registered for WLFI access prior to launch.
The project could provide the former president and his family with hundreds of millions of dollars from token sales.
Code tests indicate the project will sell 30% of its 100 billion WFLI tokens at a value of $1.8 billion. But a roadmap shared with prospective investors said it would seek to sell 20% at a valuation of $1.5 billion, The Block said. reported last week
The sale, if it finds buyers for all 20 billion tokens on offer, will put $300 million into World Liberty's coffers.
Allocating 70% of the project's tokens to insiders, as well as other concerns, have raised the eyebrows of some crypto observers.
Join the community to get our latest articles and updates
On-chain sleuths quickly highlighted its connection to Dow Finance, a DeFi protocol. Hacked for $2.1 million in July.
World Liberty is a lending protocol built using code from Aave, the largest protocol on Ethereum. Aave is set to receive 7% of World Liberty's WLFI token and 20% of the future fees it generates.
As in other DeFi projects, WLFI tokens allow users to vote on protocol development initiatives.
The company says the token is non-tradable, meaning it has no market value, but code tests reveal it could be traded in the future.
World Liberty is the first US presidential candidate to launch a crypto token sale, raising questions about potential conflicts of interest and the impact on campaign finance laws.
It also raised eyeballs from some Trump supporters in the crypto industry, who fear it could expose him to unnecessary legal or reputational risk.
Although members of the Trump family promote World Liberty, none of them are legally involved, according to a disclaimer in project documentation. reported via CoinDesk.
Trump's sons, Eric and Donald Jr., first He teased World Liberty Project in early August. Since then, Trump has been on his own Promoted It's on social media.
Barron Trump, 18, who recently enrolled in his freshman year at New York University, is listed as World Liberty's “DeFi Visionary,” according to the project's documentation, CoinDesk. reported.
His role is not clear. Trump's youngest son doesn't appear to have any prior involvement in DeFi.
Ogle, a pseudonymous World Liberty consultant, previously confirmed News Eric, Donald Jr. and Barron are all involved in World Liberty.
Alex Gilbert is a New York-based reporter covering Defy. You can contact him at [email protected].
Related TopicsDonald Trump
