World Liberty Financial (WLFI), a project associated with President Donald Trump’s family, has successfully completed its fundraising efforts.
The project accumulated $550 million, according to an update from the project’s official website.
WLFI’s Initial Fundraising Goal Missed
The public sale of WLFI’s governance token commenced in October 2024, with an initial fundraising target of $300 million. The project offered 20 billion tokens at $0.015 each, but only whitelisted investors could participate.
Despite expectations, the sale generated only $11 million through distributing 766 million tokens. In response to the lower-than-expected demand, the team adjusted its funding goal downward to $30 million to align with market interest.
Surge in Demand Prompts Additional Token Offering
The first phase of WLFI’s token sale ended on January 20, with 20% of the total token supply successfully distributed. Justin Sun was reportedly one of the largest investors.
Due to rising interest, an additional 5 billion WLFI tokens were made available on January 20, priced at $0.05 per token. By March 13, approximately 99% of these tokens had been sold, reflecting a sharp increase in demand.
Token Lock-up Period and Utility
It is important to note that all purchased WLFI tokens remain locked for 12 months following the sale, restricting any immediate trading activity.
WLFI serves exclusively as a governance token within the World Liberty Financial (WLF) Protocol. It grants holders the ability to submit and vote on proposals but does not confer ownership, financial returns, or economic benefits.
Additionally, the token is neither a security nor a digital currency and cannot be used for transactions or services. Its value remains independent of WLFI’s operational success.
To participate in the sale, investors were required to use an ERC-compatible wallet and complete Know Your Customer (KYC) and Anti-Money Laundering (AML) verifications.
Purchased tokens were set to be distributed to the designated wallets at the end of the sale period. According to the project’s terms, buyers assume full responsibility for any associated risks, including potential financial losses.
Market Volatility Leads to Losses
Also note that as of March 10, total losses linked to the Trump-backed WLFI initiative had reached $110 million.
Initially, the project allocated $336 million to acquire nine different cryptocurrency assets. However, market downturns reduced the portfolio’s value to $226 million. Ethereum (ETH) represented 65% of the holdings and recorded the largest decline.
WLFI purchased ETH at an average price of $3,240 per token, but with the current price hovering around $1,896, the portfolio suffered significant devaluation. Other digital assets within the WLFI portfolio also incurred losses, contributing to the overall financial setback.
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