Former President Donald Trump’s new crypto coin launched this morning around 8 a.m. EST, and in the first 20 minutes, over 220 million tokens were sold at over 1 700 unique wallets.
However, during the release of the WLFI (World Liberty Financial) crypto coin, the launch website suffered several outages. Despite this, around 2,900 investors purchased 344 million tokens in the first hour.
WLFI is a platform governance token, meaning investors can borrow, lend, and earn interest. The goal was to reach $300 million, with 100,000 accredited US investors already whitelisted ahead of Tuesday’s launch of the decentralized finance platform.
“World Liberty Financial is a high-stakes player in the DeFi sector, an ecosystem built on smart contracts and blockchain technology,” said David Materazzi, crypto market expert and CEO of automated trading platform Galileo FX. News week. “This is not a simple token. It is a piece of governance with far-reaching implications. Trump’s entry signals that crypto is no longer a niche hobby for tech enthusiasts.”
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Ahead of the sale’s launch, Trump pledged to “make America the crypto capital of the world,” despite his previously expressed skepticism of cryptocurrency.
“I promised to make America great again, this time with crypto,” Trump wrote on X last month. “@WorldLibertyFi plans to help make America the crypto capital of the world! The whitelist of eligible people is officially open: this is your chance to be part of this historic moment.”
The new cryptocurrency differs significantly from the Bitcoin cryptocurrency due to its non-transferable and yield-free nature. 63% of its token offering was also specifically reserved for accredited investors, which includes people with a net worth of $1 million or more.
“Right now, WLFI is out of reach for the average person,” Materazzi said. “Only accredited investors are on the list, hand-picked for this exclusive pre-sale. The rest of the market will have to wait their turn, but by the time the public sale takes place, some of the early players may have already made or lost a kill. It’s time for the sharks.”
Previously, Trump raised concerns that the cryptocurrency “just seems like a scam.”
“I am not a fan of Bitcoin and other cryptocurrencies, which are not money and whose value is very volatile and based on the zeitgeist,” Trump wrote on social media in 2019. “Unregulated crypto assets can facilitate illegal behavior, including drug trafficking and other illegal activities.
“We only have one real currency in the United States,” Trump also said. “And it will always stay that way. We call it the American dollar!”
News week contacted the Trump campaign via email for comment but did not receive a response in time for publication.
The WLFI token is built on Ethereum and designed to attract both institutional and retail investors, Materazzi said, but there are risks.
“Like any cryptocurrency, volatility is likely and the market can fluctuate wildly,” Materazzi said. “For those ready to take the plunge, this could be either a boon or a trap. In crypto, fortune favors the brave, but never the foolhardy.”
Materazzi said Trump’s move into crypto was likely due to America’s desire for market dominance rather than an outright love of blockchain.
“It’s not about love for blockchain, it’s about domination,” Materazzi said. “He wants the United States to be the best player in the game and he realized crypto could be the way to get there.”
Anastasija Plotnikova, co-founder and CEO of Fideum, said the launch of WLFI could raise important questions about conflicts of interest and the use of personal companies in political campaigns.
“The structure of the project, particularly its restriction to accredited investors, appears designed to accommodate SEC regulations,” Plotnikova said. News week. “If we’re looking at mass adoption, Trump’s endorsement could accelerate mainstream acceptance of cryptocurrencies.”
