Trump Officially Launches New Token, Taunts US Crypto Regulations

The long-anticipated details of the new Trump family endeavor, World Liberty Financial, were unveiled late Monday on an X space livestream.

The X livestream, which hosted over 830,000 participants, saw the team unveil the details of the decentralized finance (DeFi) project. The founders released information about World Liberty Financial, including who could buy the tokens the protocol would release and how the tokens would be allotted.

Details of the Protocol

Although the Monday livestream didn’t shed much light on the project’s operations, it unveiled the team’s decision to offer tokens to eligible investors. One of the founders of World Liberty Financial and popular crypto influencer Zak Folkman, revealed the tokenomics of the project’s non-transferable governance token, WLFI.

Folkman read from a pre-written statement that 63% of WLFI’s total supply would be set aside for public purchase, 17% of the token would be used to reward users, and 20% of the governance token would be allocated to the team behind the project. Notably, the details didn’t contain the total supply of WLFI.

The founder also revealed that the project would not offer venture capital firms the privilege of a presale or early buy into the token. Folkman insinuated that all public tokens would be available to users with equal opportunities.

It bears mentioning that the tokenomics squashed an earlier report of foul play from the protocol’s team. Speculations made the round that the protocol allocated 70% of the WLFI token to the team, raising concerns over the credibility of the DeFi endeavor.

The operations of World Liberty Financial remain officially unknown. However, an earlier report revealed that the team intends to offer users crypto lending, borrowing, and trading services. Eric Trump also teased that the project was like a digital real estate tipped to disrupt the traditional financial system.

Regulatory Barriers to Limit Participation

Part of the revelation on Monday was that US citizens have limited access to the WLFI governance token. Folkman noted that the regulatory unclarity in the US had forced their hands on the decision. As a result, only accredited investors could purchase the token.

He noted that although the WLFI token was not a security, the approach was imperative to avert loggerheads with the US Securities and Exchange Commission. Folkman added that non-US investors would also see a similar impediment to laws applicable in their region.

WLFI will be offered as a Registration D token under the US SEC. This category of assets could be sold to investors without prior registration with the regulator as long as certain parameters are kept in place.

Trump Taunts the US SEC

Trump didn’t mince words while analyzing the impediments of the unclear regulation in the US on the reserved offering of the WLFI token. He frowned at the securities watchdog’s persistent clampdown on the crypto industry and indicated his interest in making a difference.

“We’re going to make our country greater than ever before, and you’re going to be happy, and you’re going to love your crypto,” Trump said.

Trump also discussed his initial skepticism over the crypto sector, mentioning that his sons played a part in the change of heart. He also stated that he reconsidered his initial stance when proceeds from the sales of his Trump-trademarked non-fungible token collections were paid in crypto.