World Liberty Financial (WLFI), a fresh entrant in the DeFi space backed endorsed by former President Donald Trump and his family, has started the Know Your Customer procedure for its WLFI token sale, as per their announcement. KYC The platform's appeal is questioned due to its non-transferable governance token; plus, there are many other platforms competing in this space.
The initiative has revealed that its current whitelists, which offer early access to their services, are open to accredited investors in the US and all non-US citizens. This means individuals not meeting the financial thresholds set by the U.S. Securities and Exchange Commission are excluded from the whitelist.
To be accredited in accordance with SEC rules, an individual or entity needs to meet certain financial conditions, such as earning above $200,000 annually or possessing a net worth over $1 million.
Trump Goes Crypto
WLFI has stated intentions to make the platform accessible to all Americans, but regulatory constraints make this difficult at present. Still, the project remains hopeful about eventual nationwide availability.
“In the future, we intend to make this platform available to all Americans, granting access to valuable tools and opportunities that have been limited for too long,” declared the project.
Information about Trump-backed World Liberty Financial remains scant.
World Liberty Financial?
Thus far, it’s been disclosed that Trump will serve as the project’s ‘chief crypto advocate,’ while Eric Trump and Donald Trump Jr. will act as Web3 ambassadors, and Barron Trump is involved as a ‘DeFi visionary.’
Anticipated to utilize Ethereum blockchain and Aave’s DeFi protocol, the platform is designed to facilitate digital asset borrowing and lending.
Serving as the platform's governance element, the WLFI token comes as a non-transferable asset, granting holders voting privileges within the network. The inability to trade these tokens raises investment value concerns.
Sources suggest 63% of WLFI tokens will be available in a public sale, 20% reserved for the founding team including Trump and his sons, while 17% will be rewards for users.
WLFI strives to deliver financial services that support stablecoin use and decentralized finance. They aim to extend opportunities to the unbanked or underserved demographics deprived of standard banking services.
1/6 World Liberty Financial’s whitelists are now accepting entries. With Trump's backing, we are poised to onboard the next wave of users to a future-oriented financial realm. Join the initiative here:
WLFI has garnered significant attention due to its high-profile support, yet its imprecise operational model and restricted access have sparked criticism. Critics argue that the limitation to accredited investors contradicts its goal of helping average Americans. https://t.co/YLcCq49uac
— WLFI (@worldlibertyfi) September 30, 2024
It Will Get Users…
Their token distribution strategy has also been criticized due to concerns about power dynamics centered around insiders.
Renowned entrepreneur Mark Cuban expressed skepticism, labeling Trump's DeFi pursuits, along with his NFT activities, as acts of ‘desperation.’ Meanwhile, Anthony Scaramucci of SkyBridge, and a former Trump advisor, dismissed WLFI as a 'deceptive scheme’ potentially undermining legitimate digital finance initiatives.
Contrary to Cuban and Scaramucci, David Nikzad, co-founder of DeFi.Gold, viewed Trump's involvement positively, suggesting it could spotlight the crypto space. He believed Trump’s 'daring approach' might help sanction DeFi by attracting fresh users.
Concerns are also brewing over the project’s influence on Trump’s presidential ambitions, which loom close on the horizon. Nic Carter of Castle Island Ventures has urged collaborative efforts to halt WLFI's launch, fearing it could harm Trump’s electoral prospects.
Nicholas Say hails from Ann Arbor, Michigan, and has spent significant time in Uruguay. He's currently based in the Far East, his writings dot the web with a focus on realistic advancements and future human technologies.
