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Eric Trump has stepped down from the board of ALT5 Sigma, a newly established World Liberty Financial Treasury company. As reported by Forbes on Tuesday, the decision has led to a 7% decline in the WLFI price, causing it to fall below the crucial $0.20 threshold.
Confusion Surrounds Eric Trump’s Exit From ALT5 Sigma
The announcement of Trump’s departure was made through a Securities and Exchange Commission (SEC) filing, which revealed that the change came just weeks after ALT5 Sigma had initially appointed him as a director.
According to the report, the decision to remove Trump was made in consultation with The Nasdaq Stock Market LLC to ensure compliance with its listing rules. However, the specific regulations that prompted this action were not disclosed in the filing.
Interestingly, three securities law professors consulted by Forbes were unable to identify a clear reason why Nasdaq would accept one appointee from the company while rejecting another.
Nasdaq requires that a majority of board members at listed companies be independent, and if Eric Trump did not meet these criteria, it raises further questions about why Zachary Folkman, his replacement, would qualify.
WLFI Price Sinks To $0.19
Just weeks prior, Eric Trump, alongside his brother Donald Trump Jr. and executives from World Liberty Financial, participated in a ceremonial ringing of the Nasdaq opening bell.
This event coincided with ALT5 Sigma’s announcement of a significant fundraising effort, aiming to raise $1.5 billion through private share sales to acquire WLFI tokens, the native cryptocurrency issued by World Liberty Financial.
Despite the formal announcement made to the SEC, it is noteworthy that ALT5 Sigma’s website still lists Eric Trump as a board director on its leadership and investor relations pages.
Following the filing, the WLFI price dropped to $0.1961, further exacerbating its negative performance over the last 24 hours and seven days, with a 14% decline over the latter period.
According to CoinGecko data, the WLFI price is currently trading 39% below its all-time high (ATH) of $0.33, which was reached on September 1st—the day the token debuted on major exchanges after months of anticipation.
Featured image from Politico, chart from TradingView.com
