Trump token WLFI confirmed, sales limited to accredited investors and non-US persons

Donald Trump today confirmed the WLFI token of his family’s DeFi project, World Liberty Financial, during a livestream on X Spaces. The team behind the project announced that its upcoming token sales will be restricted to accredited investors and non-US persons.

“While we don’t consider WLFI to be a security, given the regulatory uncertainty surrounding tokens in the US, we’ve decided to limit sales to those eligible for exemptions under US federal securities law,” the team stated.

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— Farokh (@farokh) September 16, 2024

WLFI is designed solely as a governance token for the World Liberty Financial platform, offering holders voting rights but no economic benefits like dividends or profits. The tokens will also be non-transferable.

The token allocation is as follows: 63% to the public, 17% for user rewards, and 20% to the team and advisors.

Despite the substantial public allocation, restricting sales to accredited investors has drawn criticism for limiting participation, which runs counter to crypto’s original promise of open access.

During the livestream, former US president Donald Trump chimed in with a strong message regarding the SEC and its approach to crypto.

“Since the hostile SEC heard I was involved, they’re treating people much better,” Trump said.

Trump suggested that his association with the token and the crypto space has led to a more favorable stance from the SEC toward crypto projects. However, he warned that this soft approach could be temporary, stating:

“If we don’t win the election, there will be a huge crackdown on crypto people. They will be living in hell.”