Despite the hype, Trump’s World Liberty Financial (WLFI) token launch saw disappointing sales due to restrictions, non-transferability, and a tedious buying process.
The much-anticipated launch of Donald Trump’s World Liberty Financial (WLFI) token on October 16 quickly lost momentum. Despite the fanfare surrounding the former president’s involvement, WLFI’s first-day sales have been underwhelming, with only 4.24% of the total supply sold. Multiple factors, including restrictions on who can invest and non-transferability, seem to have contributed to the tepid response.
Key Points:
Limited Investor Eligibility:
One of the main reasons for the WLFI token’s poor performance is the restrictive eligibility criteria for potential buyers. Unlike most token presales that allow anyone to participate anonymously, WLFI limited its buyer pool to accredited U.S. investors and non-U.S. residents. This requirement disqualified the vast majority of Trump’s supporters, particularly those in the United States who don’t meet the stringent financial requirements to qualify as accredited investors. To be considered “accredited,” an individual must earn over $200,000 annually or have a net worth exceeding $1 million, which automatically excludes a significant portion of the population. This limitation shrank the potential buyer pool drastically, causing a slowdown in sales from the start.
Non-transferable Token:
Unlike most cryptocurrencies that are freely tradable, WLFI comes with a unique restriction — it cannot be transferred from one wallet to another. This non-transferability means that investors cannot sell the token to anyone else, even if they want to. This inability to transfer or trade the token removes one of the key incentives for most crypto investors — the potential to profit from price fluctuations. For investors looking to capitalize on buying low and selling high, WLFI does not offer that option. Instead, investors must hold onto the token with the hope that it will gain value once the associated DeFi protocol is released, which is not a guaranteed outcome. This unusual restriction has likely discouraged many potential buyers.
Website Issues:
The technical difficulties that plagued WLFI’s website during the token sale further hindered its success. Several users reported encountering errors or being unable to access the site altogether. Some were greeted with “page not working” messages, preventing them from completing purchases. While it is not uncommon for high-traffic token sales to experience server overloads, the issue was particularly problematic given the already limited pool of eligible investors. Any users who were unable to buy tokens due to the website crash may have decided to forego their purchase altogether, further stifling sales.
Controversy and Skepticism:
The token’s launch was met with considerable skepticism from the crypto community, with many critics labeling the project as a potential grift or petty scam. A key source of controversy was the non-transferability of the token, which some users believed was not adequately disclosed. Although the restriction was outlined in the terms and conditions, some observers argued that the WLFI team was relying on buyers not reading the fine print. The token’s association with Donald Trump, a polarizing figure, also added to the skepticism, with some people questioning the legitimacy of the project altogether. On social media platform X (formerly Twitter), the announcement of the WLFI token was even flagged with a community note warning potential buyers to read the small print.
Tedious Buying Process:
The process of purchasing WLFI tokens was not only restrictive but also tedious. In addition to verifying whether they were accredited investors or non-U.S. residents, buyers had to undergo a Know Your Customer (KYC) check to verify their identity. The KYC process required them to upload personal identification documents such as passports or driver’s licenses, which may have deterred some would-be investors from proceeding with the purchase. Many crypto investors prefer the anonymity and simplicity of traditional token sales, and the extra steps involved in buying WLFI likely discouraged participation.
Trump’s WLFI token may have launched with big expectations, but several factors have led to its poor performance on day one. Time will tell if the project can recover, but for now, it seems many of Trump’s supporters are sitting this one out.
Related: Yahoo
Disclaimer: The information presented in this article is based on available sources at the time of writing and is intended for informational purposes only. It should not be interpreted as financial, legal, or investment advice. Cryptocurrency investments are subject to high market volatility, regulatory risks, and other uncertainties. Readers are advised to do their research, seek professional guidance, and carefully assess their risk tolerance before making any investment decisions. The views and opinions expressed in this article are those of the sources mentioned and do not necessarily reflect the stance of this platform.
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