Justin Sun, the founder of Tron, has emerged as the largest investor in Donald Trump’s cryptocurrency project, World Liberty Financial (WLF), by purchasing tokens worth $30 million.
Investment Details
- Token Purchase: Sun acquired 2 billion WLFI tokens at $0.015 each through a wallet linked to HTX (formerly Huobi), a platform he controls.
- Announcement: On November 25, Sun declared his investment on X (formerly Twitter), expressing Tron’s commitment to “Make America Great Again” and lead innovation.
Challenges and Impact
- Slow Token Sales: Since its mid-October launch, WLF token sales have struggled due to restrictions that limit purchases to non-US citizens and accredited US investors, along with the tokens’ non-transferable nature.
- Revenue Boost: Sun’s investment has pushed the total sales to $52 million, still far from the $300 million target, accounting for only 17% of the goal.
Profit Sharing and Trump’s Role
- Profit Sharing: Per the project’s whitepaper, 75% of net profits will go to DT Marks DEFI LLC, Trump’s company, once the $30 million revenue threshold is reached.
- Trump’s Involvement:
- Listed as the project’s "chief crypto supporter."
- His sons serve as Web3 ambassadors.
- Trump’s presidential campaign includes promises to make the US a global crypto capital and reduce regulatory oversight.
Legal and Market Context
- SEC Challenges: Sun and Tron face legal scrutiny from the SEC for allegedly selling TRX as an unregistered security and engaging in wash trading. Sun has denied these allegations.
- Market Activity:
- TRX token trades below $0.20, down 5.5% yesterday, despite an 84% year-to-date increase.
- TRX remains significantly below its January 2018 peak of $0.23.
Additional Context
- Art Purchase: Recently, Sun made headlines for buying a banana duct-taped to a wall for $6.2 million.
- Future Prospects: WLF’s co-founder, Zak Folkman, remains optimistic, citing recent large investments as a sign of growing interest.
Conclusion
Sun’s investment represents a significant endorsement of Trump’s World Liberty Financial project, bringing it closer to its ambitious goals despite regulatory and market challenges. This move underscores Sun’s bold approach to investment and aligns with Trump’s vision of positioning the US as a global leader in cryptocurrency innovation.
