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Former President Donald Trump’s crypto project, World Liberty Financial, had a rough first day — its website experienced multiple prolonged outages, disrupting the sale of tokens.
According to blockchain data from Etherscan, only about 4,300 unique wallet addresses held the token as of Tuesday afternoon — roughly 4% of the total registrants. As of 1:48 p.m. ET, over 500 million World Liberty Financial (WLFI) tokens had been sold at a price of 1.5 cents each, according to the project’s website. The sold tokens represent less than 3% of the 20 billion made available for sale.
World Liberty Financial aimed to raise $300 million through its initial token sale Tuesday, targeting a valuation of $1.5 billion.
With just three weeks remaining until the election, the technical glitches on the World Liberty Financial website could cast doubt on the project’s credibility and be a setback for Trump, who has been courting the crypto community. The project, promoted by Trump and his sons, was seen as a way to position him as a pro-crypto candidate, solidify his stance on digital assets, and appeal to a growing segment of voters who favor cryptocurrency adoption.
Decentralized in name, centralized in reality
The project has faced controversy from the outset, with significant pushback from the crypto community over concerns about its centralized structure.
Although Trump and his sons have promoted World Liberty Financial as a decentralized initiative, in reality, it appears to be quite different. Around 70% of WLFI tokens are set to be retained by insiders, including founders, team members, and service providers, meaning real control would likely remain with a select few.
Only 30% of the tokens are earmarked for public sale — and even then, the founding team stands to receive a portion of the proceeds. Additionally, the WLFI token is nontransferable and will be indefinitely locked in a wallet or smart contract. Unlocking the token would require approval through protocol governance procedures and must comply with applicable laws, complicating its usability and raising questions about the true level of decentralization.
Trump’s crypto project linked to a former pick-up artist
The World Liberty Financial project will be built on the Ethereum-based (ETH-5.78%) lending platform Aave. Trump is listed as the project’s “Chief Crypto Advocate.” His sons Eric Trump and Donald Trump Jr. will be involved as “Web3 Ambassadors.”
The operational side of the project is led by Zachary Folkman and Chase Herro. Folkman (the project’s head of operations) and Herro (who oversees data and strategies) previously co-founded Dough Finance, a blockchain app that was recently compromised in a hacking incident. Folkman’s background includes running a company named Date Hotter Girls LLC and creating YouTube seminars focused on how to pick up women.