As a seasoned analyst with over two decades of experience in the financial sector, I must say that the recent investment by Justin Sun into Donald Trump’s crypto project, World Liberty Financial, is a move that raises both eyebrows and curiosity. Given my extensive background in understanding market trends, regulatory landscapes, and the personalities involved, let me share some insights.
In simpler terms, the creator of the Tron blockchain, Justin Sun, is now the biggest backer of Donald Trump’s cryptocurrency venture, World Liberty Financial, as he has purchased approximately $30 million in their tokens.
Sun expressed his excitement about investing $30 million into World Liberty Financial, positioning it as our biggest investment, in a post on November 25. TRON stands firm in its mission to revitalize America and spearhead innovation.
Prior to Sun’s post, it was noticed that a digital wallet linked to the cryptocurrency exchange HTX, previously known as Huobi and allegedly under Sun’s control, made transactions to acquire 2 billion World Liberty Financial (WLFI) tokens. Each token cost $0.015.
The sales of WLFI have been slow ever since its launch in October, due to the fact that only non-U.S. residents and U.S.-accredited investors are allowed to purchase, and the tokens themselves cannot be resold. This has left potential investors uninterested.
Before Sun’s purchase, approximately $20 million worth of WLFI tokens were already sold, contributing to a total sales figure of $52 million. However, this represents only 17% of the ambitious $300 million target set by World Liberty for its token sale.
However, this doesn’t imply that Trump and his family will immediately begin receiving payments. The project’s “gold document,” or white paper, specifies that DT Marks DEFI LLC is eligible for 75% of net earnings once the project surpasses $30 million in revenue, which it has now achieved.
In this role, Donald Trump is identified as the main advocate for cryptocurrency within the platform. Meanwhile, his sons Eric, Barron, and Donald Trump Jr., are named Web3 ambassadors. During his presidential campaign, Trump pledged to establish the United States as a global leader in crypto technology and to streamline regulatory control over the sector.
Currently, Sun and Tron are grappling with issues concerning U.S. regulatory bodies. In March 2023, they were taken to court by the Securities and Exchange Commission for claims of selling the Tron (TRX) token illegally as an unregistered security and manipulating its price through wash trading, allegations that Sun refutes.
Last Sunday, November 21st, Sun announced that he spent $6.2 million on a banana affixed to a wall during an auction, intending to consume it afterwards.
TRX experienced a 5.5% decrease over the last 24 hours, now trading below 20 cents. While it has climbed approximately 84% this year, it remains about 15% shy of its previous high of 23 cents achieved in January 2018.
World Liberty Financial and Tron did not immediately respond to requests for comment.
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2024-11-26 04:08