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- Despite the recent investment from Justin Sun, WLFI has faced slow adoption due to restrictive purchase conditions, including limitations on sales to U.S. accredited investors.
- Trump’s endorsement as WLFI’s “chief crypto advocate,” could provide a favorable environment for the project’s future success.
Justin Sun, founder of the Tron blockchain, has emerged as the largest backer of Donald Trump’s crypto project, World Liberty Financial. Sun recently revealed purchasing $30 million worth of its tokens. Moreover, the crypto community went gaga over the announcement as they expect WLFI to recover from the ongoing sluggish performance.
Justin Sun Invests In Donald Trump’s WLFI Project
Announcing the investment on Monday, November 25, Sun wrote on X:
We are thrilled to invest $30 million in World Liberty Financial as its largest investor. TRON is committed to making America great again and leading innovation.
The investment was executed through a wallet linked to HTX, previously known as Huobi, according to blockchain explorer Etherscan. The wallet purchased two billion World Liberty Financial (WLFI) tokens at $0.015 each. This investment cemented Sun’s position as the project’s primary investor.
For further context, World Liberty Financial launched its WLFI token in mid-October but has struggled to gain traction, per the CNF report. Strict purchase restrictions that limit sales to US-accredited investors and non-U.S. participants alongside non-transferable token mechanics have deterred many buyers.
Prior to Justin Sun’s involvement, only $20 million worth of WLFI tokens had been sold. This amount fell significantly short of the $300 million fundraising target. Thus, Sun’s acquisition pushed total sales to $52 million, representing 17% of the goal.
This milestone enables the project to activate a key provision in its “gold paper” (an alternative to a white paper). It allows DT Marks DEFI LLC, an entity owned by Trump, to claim 75% of net revenues after surpassing $30 million in sales.
WLFI Co-Founder Reacts
World Liberty Financial co-founder Zak Folkman highlighted Sun’s purchase as a turning point for the initiative. He said:
This sizable purchase of WLF tokens underscores the early success of this project,. There have been several significant purchases in recent weeks, and we are confident in our future success as we build a platform that promotes freer and fairer finance.
The project has positioned Donald Trump as its “chief crypto advocate,” with his sons Eric, Barron, and Donald Trump Jr. serving as “Web3 ambassadors.” During his presidential campaign, Trump pledged to establish the U.S. as a global leader in crypto and reduce regulatory constraints on the industry.
However, Justin Sun’s involvement in this venture comes amid ongoing legal challenges in the United States. In March 2023, the Securities and Exchange Commission (SEC) filed a lawsuit against Sun and Tron. The agency alleged unregistered securities offerings of the TRX token and manipulative trading practices. Sun has denied these accusations.
Nonetheless, since Trump won the elections and SEC Chair Gary Gensler announced his resignation on January 20, things could get better. In addition, Trump is looking to appoint a “crypto czar” in the White House to oversee crypto policies, reported CNF. Such a pro-crypto administration could offer a relief to not only Tron but Ripple and others on the SEC’s radar for years.
