The crypto project of Donald Trump is arriving: watch out for real estate and loans, but the token will not be tradable.
During a dedicated space that lasted more than two hours, the children of Donald Trump introduced World Liberty Financial – the crypto project that we had already discussed and which will see the arrival of a token on the market. However, this token will have some peculiarities and has already resolved any issues it might have with the SEC.
But let’s proceed in order: the Trump family has long announced their intention to launch a crypto platform – riding on anti-banking themes and sentiment – a crypto project that will also have its own cryptocurrency. This cryptocurrency, however, will be of little interest to traders, as it will not be tradable at first and will only offer voting rights.
The presentation was also attended by Donald Trump himself, even though the project is actually in the hands of two of his children. But how will it work? It has changed quite a bit from the initial whitepapers that were circulated – and the changes have been… for the better.
Donald Trump’s crypto project is coming
As scheduled, the presentation of the crypto project headed by Donald Trump and managed by his children has arrived. At the center of the project will be the market for loans (which is why they looked to AAVE) and the desire to overcome (and for detractors, bypass) the current banking system, against which Trump has positioned himself multiple times during references to his crypto project.
There will be a token, which is what primarily interests residents in Europe and Italy, who will likely have limited access to the functionalities of the Trump DeFi platform. However, the token will have various characteristics that will make it difficult to trade.
The token will not be transferable, it will only be offered to accredited investors, and it will be exempt from registration as a security since it will rely on exceptions provided by the SEC’s Regulation D, which allows capital raising under certain thresholds and conditions without the transfer (in this case of the token) representing a registrable event with the agency.
Thus, the token will not have, at least initially, economic value in the free market, but will be reserved for professional investors and will not see public participation. The initial distribution of tokens will see 20% for project developers and owners, 17% as rewards for users, and 63% will instead be sold directly.
The token will hardly come to light before the USA elections, which will take place on November 5, 2024.
Simplifying DeFi
The goal is indeed very ambitious, namely to offer a DeFi experience, especially in the loan market, that is simpler than what users have been accustomed to in this initial phase of the sector’s life.
The presence of real estate specialists in the team suggests that the Trumps already have markets in mind to target, although the methods remain mysterious for now. For those who thought they could speculate on the token as soon as it was released, there will likely be a wait.