Trump Familys Crypto Project Faces Cold Reception, Election to Shape Crypto Market Direction

Trump Familys Crypto Project Faces Cold Reception, Election to Shape Crypto Market DirectionAs the US elections approach, Bitcoin has experienced volatile price swings, with a 20% fluctuation in the past month. WorldLibertyFinancial (WLF), a decentralized finance (DeFi) project launched by the Trump family, has garnered only $14 million in funding, falling short of its $300 million goal

Trump Familys Crypto Project Faces Cold Reception, Election to Shape Crypto Market Direction

As the US elections approach, Bitcoin has experienced volatile price swings, with a 20% fluctuation in the past month. WorldLibertyFinancial (WLF), a decentralized finance (DeFi) project launched by the Trump family, has garnered only $14 million in funding, falling short of its $300 million goal. This has raised concerns about the project's future.

Trump Familys Influence Fails to Translate into Investment Trust

Prior to its launch, WLF was heavily promoted for nearly two months, with the Trump family endorsing it. Leveraging Trump's influence, the project quickly garnered widespread attention within the industry. However, despite the hype, the project's token, WLFI, has failed to gain traction.

A seasoned cryptocurrency investor commented, "Based on the current project information, the so-called Trump family seems to be more of a 'mascot' than anything else. I understand it's just a marketing gimmick, but the project itself lacks any real innovation."

Wu Gaobin, Executive Secretary General of the World Academy of Experts and Secretary General of the New Production Committee of the China Federation of Industry and Commerce, emphasized that the cryptocurrency market is highly volatile. Investors should exercise risk control, as some project organizers may engage in fraudulent activities, urging investors to thoroughly investigate project backgrounds and team credentials.

Multiple Factors Behind the Projects Underfunding

Gao Zelong, Vice President of Beijing Consensus Blockchain Research Institute and Senior Researcher of the International Blockchain and Cryptocurrency Association, suggests that the project's underfunding may be due to multiple factors. Investors typically adopt a cautious approach towards new projects, especially when they are associated with prominent figures, as it can lead to increased questioning about their authenticity and feasibility.

Furthermore, the market is highly competitive, and new cryptocurrency projects need to offer a unique value proposition to attract capital. WLF's token sale imposed numerous restrictions, contributing to its lackluster performance. The project employed Regulation D, limiting the sales scale and restricting it to qualified investors. Tokens are not available for secondary trading, although token holders retain governance voting rights for project development.

Impact of the Election on the Crypto Market

The industry widely believes that the outcome of the US elections will have a profound impact on the cryptocurrency industry. Regardless of who ultimately wins, the US elections present an environment of uncertainty and opportunity for the market. Market sentiment fluctuations and policy clarification will drive short-term price fluctuations in crypto assets.

Trump's friendly stance towards the cryptocurrency market has led to Bitcoin being classified as part of the "Trump trade." Recently, QCPCapital, a cryptocurrency trading company, stated in its report that as Trump's chances of winning increased significantly, cryptocurrency prices showed a clear positive correlation with his likelihood of victory.

Both Candidates' Stances on Cryptocurrencies

Trump has publicly stated his intention to make the United States the "global cryptocurrency capital." In contrast, US Vice President and Democratic presidential candidate Kamala Harris has adopted a more conservative approach towards cryptocurrencies, pledging to support a regulatory framework for digital assets and industry growth with appropriate safeguards.

Alex Thorn, head of research at Galaxy, commented, "While Trump is undoubtedly more favorable to the industry, we are optimistic that Harris may be more supportive than Biden."

Election Outcome to Shape Market Direction

Geoff Kendrick, head of digital asset research at Standard Chartered Bank, recently stated that Bitcoin could reach $73,800, a 12% increase from its current level, before the US presidential election in November. He believes that regardless of whether Trump or Harris wins, the broader digital asset ecosystem is increasingly becoming mainstream.

Conclusion

The lukewarm reception of the Trump family's crypto project WLF reflects the market's cautious attitude towards new projects and those linked to prominent figures. The upcoming US election will undoubtedly be a pivotal factor in shaping the direction of the crypto market. Regardless of the eventual winner, it will have a profound impact on the cryptocurrency industry.

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