With just three weeks until Election Day, Trump’s cryptocurrency is about to go on sale | Wilnesh News

Shares of Donald Trump’s nascent social media business are rebounding sharply, and with just three weeks left before the presidential election, he is taking his latest proposed money-making endeavor to market, this time in cryptocurrency.

On Tuesday, the former president and current Republican candidate plans to launch WLFI, a token that accompanies his new crypto project called World Liberty Financial. Trump boosts sales over weekend In X’s posttelling his followers it was an “opportunity to help shape the future of finance.”

Potential investors understandably have little idea of ​​what they are being asked to support.

Those involved with WLF describe it as a cryptocurrency bank that encourages customers to borrow and invest in cryptocurrencies. No official white paper or formal business plan has been released to the public, all that has been disclosed is that investing in the project will give users voting rights on the yet-to-be-launched WLF platform.

In a roadmap to potential investors, First viewed by The BlockThe WLF proposal states that the token hopes to raise $300 million at a valuation of $1.5 billion in its initial sale. CNBC reached out to WLF for comment but did not receive a response.

World free finance is independent Trump Media Technology Groupthe parent company of social media platform Truth Social. Trump Media (ticker: DJT) began trading in March after going public through a special purpose acquisition company (SPAC). The stock has had a rocky road, peaking near $80 in late March but falling all the way to $12.15 last month.

But since hitting bottom on September 23, DJT shares have risen nearly 150% to $29.95, giving the company a market value of $6 billion. This comes after the company lost more than $16 million in its most recent period, with revenue of less than $1 million per quarter.

While anyone can buy DJT shares, the digital currency WLFI will be a Class D token offering, following a rule that does not require first registering the security with the SEC in order to raise funds. Certain conditions must be met, such as limiting the size of the sale and limiting it to accredited investors (some defined as having a net worth of more than $1 million).

Trump owns about 57% of DJT’s outstanding shares, but his potential control of World Liberty Financial is more opaque. WLF’s websitecurrently a landing page for signing up for Know Your Customer verification to purchase tokens, includes some fine print indicating financial incentives for 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 tokens will be distributed to the founding team, including the Trump family.

It seems they have another way to make money.

“DT Marks DEFI, LLC and its affiliates (including Donald J. Trump and his family) have or may receive tokens from World Liberty Financial and will be entitled to receive significant fees for services provided to World Liberty Financial, as specified The amount has not yet been determined,” the website said.

On Monday, less than 24 hours before the planned token launch, the WLF team held a conversation on X Spaces to share details of the sale. About 12,000 people listened to the more than hour-long chat about the project’s overall goals.

Folkman reiterated what he said at previous Spaces events, telling attendees that WLFI is a governance token that allows holders to vote on decisions about the protocol, including initiatives such as promotional partnerships. He said that token ownership “is not equity” and “does not represent economic rights.”

Folkman said the token sale will be conducted exclusively on the World Liberty website, and only those who have been whitelisted after registration will be able to participate. He said “well over 100,000 people” were on the white list and it was not too late to sign up. Folkman added that WLF will release a “long-awaited” project roadmap on Tuesday, along with a token sale.

Last week, WLF began getting its cryptocurrency bank approved by the decentralized finance (DeFi) ecosystem Aave.

Aave is open source and is one of the longest-running and most trusted crypto lending platforms in the DeFi space.

Aave founder Stani Kulechov told CNBC at the Permissionless conference in Salt Lake City, Utah: “The protocol itself is permissionless, so I’m not very firm on the integration, because that’s the whole idea of ​​decentralized finance.

Kulechov attended Monday’s X event and said he was “glad that WLF is using and relying on” Aave.

“It’s a strong signal that what we’re building is useful, so we’re very excited,” he said.

in a 400-word post on the Aave Governance ForumIn the article, the WLF team briefly outlines its goals, which include “promoting DeFi to a wider audience through marketing efforts” and introducing “new user categories for over-collateralized lending.” The proposal is currently in the preliminary consideration stage known as a “temporary inspection,” and Aave users can comment on the plan.

exist Comment areaSome users expressed concern about the plan’s deep ties to the Trump family.

One comment that has since been deleted said, “I think this proposal brings huge risks to the Aave protocol, but has little effect.” The commenter then questioned the legitimacy of “the largest and most trusted protocol in DeFi” working with “a team led by DeFi professionals.” Suspicious background …Including several convicted criminals.

Folkman helped found WLF with longtime business partner Chase Herro. CoinDesk Report The two had previously worked at Dough Finance, a project also built on Aave and suffered $2 million hack July. Ten years ago, Herro also launched another cryptocurrency trading company called Pacer Capital, which now appears to be defunct.

For World Liberty to proceed, it must go through multiple rounds of review and approval, each by vote Existing AAVE token holders.

In this process, the token sale is similar to an IOU. Anyone who buys now will be entitled to receive the token if the platform is approved and launched.

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