30s Summary

Donald Trump’s World Liberty Financial Token had a disappointing launch as it sold only around 4.24% of the goal or $12.7 million worth of tokens, leaving 19.1 billion coins unsold. The poor sales may be attributed to several factors including a limited audience, non-transferable tokens, website crash, scam suspicions, and a tedious purchase process. Despite this, Trump still received significant support from the US crypto community, raising more than $7.5 million in crypto funds recently.

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Donald Trump’s new digital coin didn’t do well on its launch. Last October 16, Trump’s World Liberty Financial Token was up for grabs. Promised as an avenue to participate in a future online finance system, expectations were high.

Yet, by the following day, sales fell flat. Only 848.63 million tokens worth around $12.7 million were bought as per website data, leaving a glaring 19.1 billion coins unsold. In total, just around 4.24% of the goal was reached.

So what was the reason behind the disappointing first-day sales? Here are some possible reasons:

First, the audience was limited. Unlike a typical token sale process that allows anybody to buy, this token could only be purchased by qualified US investors or non-residents. The process to verify “accredited investor” status was strict, even for non-US residents. Considering that a lot of Trump’s fans probably didn’t meet financial requirements to qualify, this might have crippled sales significantly.

Besides that, once bought, the tokens are non-transferable. Unlike most digital coins you can pass on or sell to others, that’s not possible here. The only real use for the token right now is holding on to it for upcoming voting rights on system decisions.

Third, the website crashed. Even with sales barely in the hundreds of millions, the load was too much for the website to handle. Therefore, people genuinely wanting to buy more might have been turned off.

People suspect scams. Critics believe that the non-transferable aspect was purposely concealed to manage higher sales. For a lot of potential buyers, this might have been a red flag.

Lastly, the entire purchase process was tedious. The effort of learning whether they’re an “accredited investor” or even starting the buying process may have deterred supporters, even if they believed in potential returns in the long run.

Despite the sales slump, Trump still has substantial support in the US crypto community. In fact, a Trump-affiliated organization was able to gather more than $7.5 million in crypto funds recently.

Source: Cointelegraph