Trump’s Crypto Token Offering: $300 Million Goal With Minimal US Participation – Details
November 03 2024 - 3:00AM
NEWSBTC
World Liberty Financial, a decentralized finance (DeFi) initiative
endorsed by former President Donald Trump, has disclosed that its
ambitious $300 million crypto token offering is largely aimed at
international investors. To date, fewer than 350 US investors
have engaged with the project, raising questions about its domestic
appeal amidst a landscape of regulatory scrutiny led by the US
Securities and Exchange Commission (SEC). World Liberty Financial’s
Offshore Focus Operating out of Wilmington, Delaware, yet managed
from Puerto Rico, World Liberty recently filed a notice with
American regulatory bodies, announcing its intent to sell only $30
million worth of tokens within the United States. Once this
threshold is reached, the crypto venture company plans to halt the
US offering, despite having approximately $288.5 million worth of
WLF tokens still available for sale. Related Reading: How To Trade
Bitcoin During The US Election, Expert Reveals Zachary Folkman,
co-founder of World Liberty, indicated in a September interview
streamed on X (formerly Twitter), that the company plans to
leverage Regulation S—a provision that allows the sale of tokens to
non-US investors without requirements typically imposed by US
securities laws. The limited interest from US investors may
stem from the SEC’s rigorous approach to regulating
cryptocurrencies, which has prompted many token issuers to focus
their efforts offshore. Trump’s involvement, along with that
of his sons, Donald Jr. and Eric, is highlighted in the company’s
filings. However, the document clarifies that their names are
included for “informational purposes” and do not imply an official
endorsement of the offering. Capital Raising In A Complex Crypto
Landscape During the September interview, Folkman discussed the
potential for non-US sales through Regulation S, but he refrained
from detailing the distribution of tokens between domestic and
international buyers. US investors have been approached
through a different regulatory pathway—Regulation D—which allows
companies to raise unlimited capital from accredited investors,
defined as individuals with a net worth exceeding $1 million,
excluding their primary residence. Both Regulation D and Regulation
S are designed to streamline capital-raising processes for
companies. However, Regulation D imposes stricter investor
protections and disclosure requirements. For instance,
companies utilizing Regulation D must publicly disclose details
about the offering, including the total amount raised and the
number of participating investors. Folkman noted the necessity of
verifying that US buyers meet accredited investor criteria, a
process that adds another layer of complexity to the offering. As
of October 15, World Liberty reported raising $2.7 million under
Regulation D by selling tokens to 348 investors. In contrast,
analytics from Kaiko show that around 17,000 unique addresses have
held the asset at least once, suggesting broader interest that may
not be reflected in US sales alone. Related Reading: Worldcoin
Rejection At $2.1 Sparks Concerns Of Prolonged Downtrend The
divergence between US and offshore sales could be partially
attributed to the anonymity afforded by Regulation S, which does
not require private companies to disclose capital-raising details
or verify the financial status of buyers. Nevertheless, the
regulation mandates that offerings be limited strictly to non-US
persons, ensuring compliance with international investment rules.
Folkman emphasized the company’s commitment to adhering to
regulatory standards during his interview, stating, “We would
expect that any potential non-US token sale would be limited to
non-US persons and comply with applicable restrictions under what
is known as Regulation S.” Featured image from DALL-E, chart from
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