Technical Issues Affect Trump Token Sales

It was assumed that the WLFI token would generate a huge interest especially with Trump at the helm. Co-founder Zachary Folkman said that there were more than 100,000 people ready to put their money in. The other side of the coin however is quite different. The project’s website could not be accessed for long periods, exasperating potential purchasers who tried unsuccessfully to participate in the sale.

In actual sense though, the token is really held by less than 9,300 unique wallets, a far cry from the expected investor uptake. The teething problems associated with the project not only curtailed the sales during the launch but also created viable concerns regarding the future of the project.

Determining Investor Attitude And Regulatory Issues

The WLFI token is described as a D regulation offering whereby it is offered to only a specific group of people known as accredited investors or individuals who either have a net worth of over $1 million or gross income of up to $200,000 annually.

This limitation on investor inclusion effectively reduces the available clientele base. In addition, unlike many of the cryptocurrencies that allow for immediate trading of their tokens, WLFI tokens are non-transferable and are mainly governance tokens. Investors can vote on proposals in the platform but are relatively passive at the moment.

Apart from these obstacles, Trump quite quickly after the launch published a post on social media urging his fans to invest in WLFI. He went on to say that cryptocurrency was the means to go, but his call to action did not result in an immediate upsurge of sales.

WLFI’s future is nevertheless unknown even as it battles to acquire momentum. The money gathered is meant for WLF’s treasury, but without a clear path plan or significant rewards for investors, confidence could continue to erode. Critics note that WLFI is opaque; it has not published a comprehensive white paper or business plan that seasoned investors usually demand from such initiatives.

Meanwhile, despite the hiccups, Etherscan data verified that thousands of investors rushed to the Trump-endorsed DeFi project. In the first hour, 3,000 distinct addresses collected about 350 million WLFI coins in the face of the rough start.

Featured image from Andrew Harnik/AP, chart from TradingView