A cryptocurrency project backed by former U.S. President Donald Trump, World Liberty Financial (WLFI), has taken the market by storm with a staggering $590 million token sale. Despite its massive raise, the project remains shrouded in secrecy, sparking speculation about its DeFi ambitions and political influence.

High-Profile Backing Fuels WLFI’s Success

WLFI’s rapid rise is largely attributed to its powerful backers. Trump’s endorsement gave it a strong brand presence, while Tron founder Justin Sun’s $30 million investment injected credibility and momentum.

The project is led by co-founders Zak Folkman and Chase Herro, focusing on DeFi innovations such as dollar-backed stablecoins and lending services. However, its political ties run deep—WLFI is reportedly linked to DT Marks DEFI LLC, a Trump-affiliated entity, raising concerns about the fusion of politics and finance.

WLFI Joins Crypto’s Biggest Fundraisers

WLFI’s token sale now ranks among the top 10 largest in crypto history, although it still trails EOS’s record-breaking $4.2 billion raise. Despite an initially sluggish start, Sun’s investment in November 2024 reignited interest, attracting institutional investors.

However, critics highlight that 70% of tokens were allocated to insiders, including Trump-linked groups, raising transparency concerns. This heavy concentration of ownership could limit decentralisation, a core principle of DeFi.

Why WLFI Tokens Remain Locked

WLFI tokens are currently non-transferable and unlisted on exchanges, restricting public trading. This exclusivity aims to prevent immediate insider selloffs, theoretically stabilising prices upon eventual listing.

However, sceptics argue that the structure concentrates power among early investors. Reports suggest that 75% of WLFI’s protocol revenues could flow to Trump-related entities, further intensifying concerns over equitable profit-sharing.

A Game-Changer or a Risky Political Bet?

The project’s fate hinges on its ability to deliver on its DeFi vision while navigating intense political and regulatory scrutiny. If successful, WLFI could bridge politics and decentralised finance, attracting a new wave of investors.

Yet, transparency gaps, insider dominance, and its polarising branding raise red flags. Whether WLFI emerges as a pioneering financial movement or a cautionary tale will depend on how it balances innovation, governance, and investor trust.