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Author: Christopher Roark, Cointelegraph; Compilation: Tao Zhu, Bit Chain Vision Realm
Tokens supported by former US President Donald Trump failed to a certain extent.
On October 16th, former US President Donald Trump launched his World Liberty Financial (WLFI) tokens (see the Special Chain Vision Realm previously reported “>Deeply stepping up the WLF supported by the Trump family: who is the behind -the -scenes trader behind the OEM“) The website of the token claims that it will allow investors to obtain voting rights to the future decentralized finance (DEFI) agreement.
However, after nearly a day of transactions, the sales of the token have been tepid.As of 10:00 am on October 17th at UTC time, the token website showed that only 8486.3 million wlfi (based on the pre -sale price, worth $ 12.7 million), and 19.1 billion token (US $ 287 million USD) Not sold.The first day of sales accounted for only 4.24%of total sales.
Number of WLFI tokens that have been sold.Source:World Liberty FinancialEssence
The following five reasons can explain that the tokens are surprisingly bad.
There are restrictions on purchasing objects
Different from most people who are open to anyone and can be purchased anonymous anonymous, only certified U.S. investors or non -residents can buy Trump Defi tokens.
When a user visits the website for the first time, the system will ask them if they live in the United States and “comply with the request of the US Securities Law D in 1933 as the request of being considered a” qualified investor “or living outside the United States.
Users who do not belong to any category must not visit the website further.
Unless the buyer first inspects the “Knowing your customer” to verify his identity, the buyer must not obtain tokens.It is speculated that someone who claims to be a resident of the United States must provide an oath statement that proves that he is a qualified investor to pass this inspection.
According to data from Investopedia,U.S. residents investors can be regarded as “qualified” only by ordinary partners, executives or directors of companies who have issued unregistered securities only by annual income of more than $ 200,000, net assets, or more than 1 million US dollars, or ordinary partners, executive officers or directors who have issued unregistered securities.
These standards actually exclude the vast majority of Americans.
Users can bypass this requirement by clicking “I live outside the United States”, but then they must provide a residence certificate outside the United States to continue.
In fact, many Trump supporters live in the United States and are not qualified investors, which may be the main reason for the weak sales of the token.
Under normal circumstances, such requirements are easily bypassed.Cryptocurrency users outside the United States can purchase tokens from the website, and then sell it to American residents through the decentralized exchange.
U.S. residents who purchase tokens will use encrypted addresses to identify their identities, which makes it almost impossible for the government to determine whether they are American residents and provide a reasonable reasons for sellers.
However, Trump’s WLFI tokens did not happen because the tokens could not be transferred.
WLFI cannot be transferred or traded
Unlike most cryptocurrencies, WLFI cannot be transferred from one wallet to another.This means that recognized investors cannot sell the tokens to unbelievable investors, and anyone outside the United States cannot sell them to American residents.
In fact, holders cannot sell tokens at all.The only thing they can do to tokens is to wait for the DEFI agreement to be released, and at that time, their developers claim that the holder will vote for the proposal affecting the agreement.
The terms and conditions of token sales clearly stipulate that the tokens cannot be transferred to other users.
WLFI sales terms and conditions.Source:World Liberty FinancialEssence
Unable to sell tokens means that investors cannot make profits by selling tokens at a higher price, and token holders cannot obtain profits from the DEFI protocol that are about to be launched.
The website collapsed
Although only hundreds of millions of tokens were sold, the website could not even deal with so small traffic.Some users report that when they tried to buy tokens, they encountered the news that “this page could not work properly.”
Source: Wazz
As the website has been closed, some users may not be able to buy WLFI. After considering their plans, they may change their minds and decide to retain their own money.This may further reduce the sales of tokens.
The WLFI team has not explained the reasons for the paralysis of the website, but they may expect that the sales volume will be worse than the original.Therefore, they may not have enough servers to handle the traffic of the website, causing the website to paralyze and make the situation worse.
People think this is a scam
Another reason for token sales may be that the project is generally believed that the project is a fraud or small scam.
Some observers say they believe that the lack of transferable was concealed to the buyer deliberately in order to sell more albums.
Although the token website clearly explains the lack of transferable, some people think that the project does not expect buyers to read the rules.
Trump announced that the launch of the token has caused a lot of controversy on X, which has attracted the attention of the community.The description pointed out that “in the rules, it pointed out that the‘ tokens ’are not transferred and locked in the wallet, so you cannot withdraw the tokens before the“ plan ”thinks it is suitable. Please read the small characters!”
Reflecto passive income token founder Vladimir Djukic shared the news:
Source: vladimir
The purchase process is cumbersome
Another reason for token sales may be that the purchase process is too frustrating for many potential investors.
Some people may not know if they are qualified investors, because they may not even know the meaning of the term.
Others may not be sure what “life” means in the United States.For example, if a person visits the United States for several months in a year, but spend the rest of the time in another country, they may not be sure which button to press.
Even if they enter the token sales page, they must first check the KYC before entering the last step of the purchase.Some users may not trust the Sumsub company that performs KYC inspection, and may not upload their passports or driving licenses.
Even if they are willing to trust the company that performs KYC, they may just unwilling to upload their documents.
The overall boring process of the purchase process may be another reason why many supporters decide to skip token sales. Even if they believe that the tokens will get a return in the long run.
Despite the poor token sales, Trump still has the support of many people in the U.S. cryptocurrency community.According to data from the Federal Election Commission, the Political Action Commission of the Trump Allies raised more than $ 7.5 million in cryptocurrencies from July to September.
According to Galaxy Digital’s research, Trump’s opponent and vice president Kamara Harris are also considered more suitable for cryptocurrencies than the current President Joe Biden.
She recently tried to attract cryptocurrency voters through promise to provide reasonable asset supervision as part of her “opportunity economic commitment”.
