Unpacking the $400 million token sale payout

This milestone proves that those who truly understand crypto and finance recognize what we're building — and that WLFI is on track to supercharge DeFi

A recent report by Reuters has shed light on the token sale payout for WLFI, the company founded by former President Donald Trump’s son, Eric Trump. According to the report, Trump and his family could receive up to 75% of WLFI’s token sale revenues, which totals $400 million from a recent sale. They are also entitled to 60% of the company’s ongoing profits.

However, only 5% of the token sale proceeds will reportedly fund WLFI’s platform, with the majority going to other co-founders. Buyers will also face several restrictions, including an inability to resell tokens and unclear governance rights, which could deter retail investors.

If these figures are accurate, they suggest a significant conflict of interest and could pose risks to the U.S. economy.

Earlier this year, Vitalik Buterin expressed concerns about political memecoins like TRUMP, and Trump’s financial gains from WLFI’s token sales. Buterin stated that such gains could tempt Trump into misusing his position for personal benefit.

Moreover, WLFI’s stablecoin, USD1, is part of Trump’s broader push for dollar dominance throughout the world, which further intertwines his financial interests with the firm’s success. This could have implications for financial stability, especially as Trump’s influence over regulators is likely to increase in the coming months.