A new cryptocurrency project has been announced by President Donald Trump and his family, attracting attention from investors and supporters. The project introduces a digital token called WLFI, which is linked to a company named World Liberty Financial, co-founded by Trump and his sons.
The WLFI token is part of a larger fundraising initiative involving Alt5 Sigma, a crypto firm that is participating in the project. Investors are being invited to take part in a $1.5 billion campaign aimed at purchasing WLFI tokens. The token is scheduled to launch in September, and early information suggests it is tied to a stablecoin called USD1.
WLFI operates differently from traditional cryptocurrencies like Bitcoin. While Bitcoin has a fixed supply and a long trading history, WLFI does not have a maximum limit, and it does not provide ownership in a company or any direct profits. The token offers holders 5% voting power in governance decisions of the USD1 stablecoin.
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A stablecoin like USD1 is a type of digital currency designed to maintain a fixed value, usually tied to a traditional currency such as the U.S. dollar. Stablecoins aim to reduce price fluctuations common in regular cryptocurrencies, but holding WLFI gives only limited influence over USD1 governance and does not entitle investors to company profits or ownership.
Previous Projects Show Mixed Results
This is not the first time President Trump and his associates have launched financial or digital projects that attracted early investors. Earlier ventures included social media platforms and digital coins. In some cases, early investors made gains, while those who joined later experienced significant losses.
For example, the Truth Social platform, launched by Trump Media & Technology Group, saw its stock drop over 50% from initial levels after early excitement faded. Another digital token, $TRUMP, lost nearly 90% of its value shortly after launch, despite early profits for first buyers. Another token, $Melania, experienced even larger losses.
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Non-fungible tokens (NFTs) were also part of earlier projects. NFTs are unique digital items that can represent artwork, collectibles, or other assets. The Trump NFT drop initially reached high prices, with some digital cards selling for nearly $800. Over time, prices fluctuated between $82 and $846, illustrating the volatile nature of such digital assets and how later buyers often faced bigger losses than early investors.
Structure and Investment Details of WLFI
WLFI’s structure is modeled after a corporate treasury approach, similar to what Michael Saylor did with MicroStrategy, where company cash, equity, and investments are used to acquire assets. The difference is that instead of Bitcoin, WLFI will be the main token involved.
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The token is tied to World Liberty Financial, which has connections to President Trump and his sons. Investors in WLFI do not gain ownership or profit shares from the company. Instead, a large portion of proceeds from any sales of WLFI—up to 75%—is directed to the organization and its founders.
Eric Trump, one of the president’s sons, sits on the board of Alt5 Sigma, the crypto firm involved in the campaign. The campaign encourages supporters to purchase the token, which is positioned as a way to participate in the community around the project.
Financial experts, including Owen Lamont, portfolio manager at Acadian Asset Management, have noted that assets or stocks that trade well above their real-world value often experience significant volatility. Historical examples include funds that initially had premiums of several hundred percent, only to later drop below their underlying asset value.
Investors considering WLFI will be joining a market that currently has no long-term performance record. While early information focuses on community voting rights and token ownership, the token itself does not guarantee profits or tangible assets.
