Trump's World Liberty Focuses on Offshore Investors With Limited US Token Sales

By: Eva Baxter

World Liberty Financial, a decentralized finance (DeFi) venture, endorsed by former President Donald Trump, has announced that its ambitious $300 million crypto token offering will primarily target international investors. With a strategic cap of $30 million for U.S. sales, the initiative underscores the growing focus on global markets amid stringent regulations in the United States.

Despite operating out of Wilmington, Delaware, and being managed from Puerto Rico, World Liberty has positioned its offering to leverage Regulation S. This provision permits companies to raise funds from non-U.S. investors without the stringent requirements often imposed by U.S. securities laws. This approach has become increasingly attractive to companies seeking less regulatory burden and broader international participation.

The decision to limit U.S. participation can be attributed to the landscape of regulatory scrutiny led by the U.S. Securities and Exchange Commission (SEC). Currently, less than 350 U.S. investors have engaged with the offering, reflecting possibly muted interest due to the complex compliance environment. Under Regulation D, the company has raised $2.7 million from these investors since mid-October, allowing companies to raise capital from accredited U.S. investors while fulfilling certain disclosure obligations.

Zachary Folkman, co-founder of World Liberty, highlighted that the token sale through Regulation S aims to comply strictly with international investment rules, thus excluding U.S. persons. This move ensures investor anonymity and a smoother capital-raising process, unlike Regulation D's requirements for detailed disclosures about investors' financial statuses. Moreover, the offering follows the launch of Trump's fourth series of non-fungible tokens (NFTs), aligning with the former president's ongoing interest in democratizing financial services through DeFi innovations.