TLDR
- Justin Sun invested $30M in Trump-backed World Liberty Financial (WLFI), becoming its largest stakeholder
- The investment pushed WLFI token sales to $51M, triggering a $15M payout to Trump-affiliated DT Marks DEFI LLC
- World Liberty Financial struggled initially, selling only $21M of tokens before Sun’s investment
- The WLFI tokens are currently non-transferable and non-divisible, limited to non-US and US accredited investors
- The project plans to launch a stablecoin, according to sources familiar with the matter
In a move that has captured the crypto world’s attention, TRON founder Justin Sun has invested $30 million in World Liberty Financial (WLFI), a decentralized finance project backed by President-elect Donald Trump. The investment, made through Sun’s HTX exchange wallet, has transformed the project’s trajectory and made TRON its largest stakeholder.
World Liberty Financial launched in September 2024 with high expectations but faced initial challenges. The platform originally aimed to raise $300 million through token sales but later reduced this target to $30 million due to slow adoption. Before Sun’s investment, the project had only managed to sell $21 million worth of tokens.
The investment has pushed total token sales to $51 million, marking a turning point for the project. This milestone triggered an important clause in the project’s “gold paper,” allowing DT Marks DEFI LLC, a Trump-affiliated company, to begin earning from the token sales proceeds. The company is now set to receive 75% of net protocol revenues and 337.5 million WLFI tokens.
Sun’s investment comes at a time when Donald Trump’s involvement in cryptocurrency has been growing. According to blockchain analytics firm Arkham, Trump holds over $5.4 million in cryptocurrencies, with Ethereum making up the largest portion of his portfolio.
The WLFI token structure includes several notable restrictions. Currently, the tokens are neither divisible nor transferable, features that typically appeal to cryptocurrency investors. Additionally, participation in token sales is limited to non-US investors and US accredited investors only.
World Liberty Financial has integrated Chainlink standards for on-chain data and cross-chain interoperability, adding a layer of security to its operations. However, the platform’s technical development continues to evolve as it aims to establish itself in the DeFi space.
Zak Folkman, co-founder of World Liberty Financial, expressed optimism about the project’s progress. “We are glad with the progress being achieved by World Liberty Financial, and this large purchase of WLFI tokens is an indication that this project is doing well,” he stated.
Sun publicly endorsed the investment on X (formerly Twitter), connecting it to broader themes of US leadership in blockchain technology. “We are thrilled to invest $30 million in World Liberty Financial as its largest investor. The U.S. is becoming the blockchain hub, and Bitcoin owes it to Donald Trump,” Sun wrote.
We are thrilled to invest $30 million in World Liberty Financial @worldlibertyfi as its largest investor. The U.S. is becoming the blockchain hub, and Bitcoin owes it to @realDonaldTrump! TRON is committed to making America great again and leading innovation. Let’s go! pic.twitter.com/cISTsVYP1f
— H.E. Justin Sun 🍌 (@justinsuntron) November 25, 2024
The investment aligns with Sun’s broader blockchain initiatives, including his position in Liberland, a micronation that has adopted Bitcoin as legal tender. His involvement brings both capital and attention to World Liberty Financial at a crucial time in its development.
According to sources familiar with the matter, World Liberty Financial plans to expand its offerings by developing and issuing its own stablecoin. The project team is currently working on making this financial product safe before launch, though specific details about the timeline remain unclear.
The project’s structure ensures that team members, including Trump, have indicated their intent to reinvest earned fees back into the World Liberty platform upon launch. However, no formal commitment mechanism for this reinvestment has been publicly detailed.
After reaching the $30 million milestone, the project has effectively concluded its initial token offering, as stated in an October filing with the U.S. Securities and Exchange Commission (SEC). This completion marks the transition to a new phase in the project’s development.
Justin Sun’s investment represents over half of all WLFI tokens sold since the project’s launch, making him the dominant token holder. This concentration of ownership has raised questions about the project’s decentralization goals.
Recent developments include considerations about the project’s regulatory compliance and technological infrastructure. The team continues to work on enhancing the platform’s capabilities while maintaining alignment with relevant financial regulations.
World Liberty Financial’s next steps involve developing its core DeFi services, including the planned lending and borrowing features that formed part of its initial vision. The project team has not yet announced specific launch dates for these services.
