The crypto token associated with the Trump family, known as World Liberty Financial (WLFI), has begun public trading, currently valued at approximately $5 billion (£3.7 billion) based on holdings by Donald Trump and his sons. The venture was initiated during the presidential campaign last year and has led to concerns about potential conflicts of interest given Trump’s role as a future regulator of the industry.
World Liberty Financial raised funds by selling its digital tokens to investors, who were initially restricted from reselling them. However, in July, early investors were allowed to sell up to 20% of their holdings. As of Tuesday, WLFI was trading around $0.22 on exchanges like Binance and Coinbase, having experienced a 50% decline since it started trading. Despite this drop, the current trading price remains higher than the price many early investors initially paid.
Donald Trump reportedly holds around 15.75 billion WLFI tokens, valued at more than $3.4 billion, making this crypto venture a significant portion of his wealth. The Trump family collectively controls nearly 25% of the 100 billion WLFI tokens issued, asserting claims worth approximately $5 billion at current prices. In addition, the Trumps benefit from revenues generated by coin sales, which have exceeded $500 million. A recent partnership with a publicly traded firm that raised $750 million also enhanced revenue streams for World Liberty Financial.
Criticism from Democrats regarding Trump’s crypto dealings includes allegations of corruption and conflicts of interest. The Trump administration has dismissed these claims. White House Press Secretary Karoline Leavitt asserted that the administration fosters innovation and economic opportunity. In contrast, the Biden administration has scrutinized token offerings under existing rules, suggesting they function similarly to stock sales. Nonetheless, Trump has indicated a desire for a more lenient approach to crypto regulation, with recent shifts in policy, including the disbanding of a task force targeting crypto crimes.
Source: https://www.bbc.com/news/articles/ckgjgyyqgvyo?at_medium=RSS&at_campaign=rss