David Edwards
Donald Trump today confirmed the release of WLFI, the governance token for his family’s decentralized finance (DeFi) venture, World Liberty Financial, during a livestream on X Spaces. According to the project’s team, upcoming token sales will be restricted to accredited investors and non-U.S. persons due to regulatory uncertainties.
“While we don’t consider WLFI a security, given the current regulatory environment in the U.S., we’ve decided to limit sales to those eligible for exemptions under federal securities law,” the project stated.
WLFI is designed exclusively as a governance token, offering holders voting rights but without any economic benefits, such as dividends or profit-sharing. Additionally, the tokens will remain non-transferable, further limiting their use.
The token distribution allocates 63% to the public, 17% for user rewards, and 20% for the team and advisors. Despite the large public allocation, the decision to restrict sales has drawn criticism for limiting access, a move seen as contradicting the inclusive ethos of cryptocurrency.
Trump Weighs in on SEC’s Crypto Stance
During the livestream, Trump made bold statements regarding the SEC’s approach to cryptocurrency projects. He hinted that his involvement has led to a softer stance from the regulatory agency, but warned of a potential crackdown if his political fortunes falter.
“Since the hostile SEC heard I was involved, they’re treating people much better,” Trump remarked. However, he added a cautionary note, stating, “If we don’t win the election, there will be a huge crackdown on crypto people. They will be living in hell.”
Token Limitations Raise Questions on Accessibility
The decision to limit WLFI sales to accredited investors runs contrary to cryptocurrency’s original goal of open and decentralized access. Critics argue that while the move may safeguard the project from regulatory scrutiny, it undermines the broader crypto community’s values of inclusivity and access for all participants.
Key Takeaways
- WLFI token sales limited to accredited investors and non-US persons
- WLFI serves as a governance token without economic benefits
- Donald Trump confirmed WLFI token during X Spaces livestream
- Allocation: 63% to public, 17% for user rewards, 20% to team and advisors
- Trump’s comments on SEC’s crypto stance hint at political implications
