Trump-backed crypto venture to extend token sales after raising $1 billion
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A digital assets venture promoted by Donald Trump has hit the target of raising $1 billion in a token sale, and has made more public appearances as enthusiasm for cryptocurrencies backed by the incoming US president increases.
World Liberty Financial, a project backed by Trump and his three sons, said on Monday it had sold 21 billion tokens, surpassing its goal of selling 20 billion, or $1 billion worth, in October.
The WLF, which was formed by Trump’s longtime business partners and others in the run-up to the election, also added that the 100 billion total supply will be 5 billion tokens available “due to high demand and overwhelming demand.”
The surge in demand for WLF tokens marks a stark contrast to the sell-off experienced in the first months since its launch and the Trump family’s heavy foray into cryptocurrencies ahead of his inauguration.
Over the weekend, Donald Trump and his wife Melania launched memecoins, which have increased in value. Eric Trump, an avid promoter of the WLF, attended a crypto industry gala in Washington to celebrate his father’s inauguration.
Trump has enthusiastically touted the crypto industry on the election trail, and executives have warmed to it, believing it will end the regulatory measures faced by the Biden administration.
WLF has not released its plan yet. The coins give holders only limited voting rights and no economic rights, and cannot be traded or sold to WLF.
Crypto entrepreneur Justin Sun, who bought and ate a $6m banana artwork in November, said last week he had donated an additional $45mn to the WLF. The acquisition of Sun, which is being sued by US securities regulators for fraud and other securities law violations, took its total investment to $75mn.
Trump has already appointed several crypto-friendly names to top jobs, including Securities and Exchange Commission chief Paul Atkins and venture capitalist David Sachs as the new AI and crypto tsar.
In response, crypto companies and billionaires have offered financial support to Trump, with stablecoin operator Circle and blockchain payments group Ripple among the companies that paid to the inauguration committee. Bitcoin hit a new record high above $109,000 on Monday on expectations that Trump will issue executive orders that will boost the fortunes of US industry in the coming days.
However, many of the crypto market’s biggest names fear that Trump’s move into digital assets could be seen as an attempt to extract value from supporters. The Trump memecoin co-owned company is affiliated with the Trump Organization, and receives a share of token-related business revenues.
“Essentially, we’d have an informal rule that presidents don’t start or start businesses that could create a conflict of interest,” said Nick Carter, a venture capitalist at Castle Island Ventures.
Donald Trump’s memecoin fell to $52 on Monday, down from a weekend high of $75. Melania Trump’s memecoin was at $8.43, compared to Sunday’s high of $13.64, sending the Donald’s coin down 40 percent.
Memecoins have no business model, cash flow or fundamental value, and they do not give their owners a share of any physical assets, and they rely on their popularity among traders for their value.
“A new era of chaotic crypto is here,” Bernstein analysts wrote in a note, adding that Trump’s launch of MemCoin “is a major paradigm shift” and “signals a new era of regulation where governments see crypto as a technology to reach the masses.” directly”
