- The new Trump family-backed crypto platform is advancing.
- Trump has remained vague about specific details of the project.
- The co-founders of World Liberty Financial have shifted their stance on a token launch.
From mugshot NFTs to Bitcoin-branded sneakers, US presidential candidate Donald Trump is no stranger to leveraging trends for business initiatives. Since embracing his self-proclaimed title as the “crypto president, Trump has turned to the industry with bold promises and vision, pledging to brand the United States an industry capital in return for support. The election hopeful has also taken his vision further, unveiling a family-backed DeFi venture, World Liberty Financial.
The growing attention around the project has left many wondering: What is World Liberty Financial?
What is Trump’s World Liberty Financial Project?
The buzz surrounding Trump’s new initiative first commenced on August 6, 2024, when his sons, Eric and Donald Trump Jr, publicly endorsed the crypto and decentralized finance sector.
Sponsored
The comments, building on Donald Trump’s months-long crypto campaign, quickly gained momentum, when the Trump boys hinted at an incoming DeFi project. The following weeks saw the teaser intensify, involving the launch of an official Telegram communication channel, as well a rebrand of the project from its initial name “The DeFiant Ones” to its present “World Liberty Financial” title.
After weeks of promotions from Trump and his family members, World Liberty Financial officially debuted on September 16, 2024.
Trump emphasized that the project will “embrace the future with crypto and leave the slow, outdated big banks behind,” built on his sons’ claims that the platform will use blockchain technology to tackle inequalities in the current financial system.
However, the lack of concise specifics has raised questions across the industry.
Sparse WLFI Details Raise Questions
In a recent X space intended to share World Liberty Financial’s “vision for making finance great again,” the Trump family joined select industry participants to debut the project.
However, Trump’s brief segment in the event’s over 2-hour duration fell short of expectations. Instead of offering substantive details about WLFI, his remarks praised his sons’ enthusiasm for the crypto industry and revisited his past NFT ventures.
“We’re going to make our country greater than ever before, and you are going to be happy, and you're going to love your crypto and as long as you have crypto, you are happy” he vaguely expressed.
Other contributors in the space, however, stepped in, promoting the Trump-backed crypto platform as a toolset to revolutionize the financial system.
“Our goal is to really shine the light on the crypto industry as a whole,” one stated, reaffirming the aim to enhance financial accessibility for the average individual. Beyond their ambitious goals, another interesting development has caught the industry’s attention.
WLFI Token Debut
While Trump Jr. previously affirmed that a token launch was not a part of the new project, the concluding session of the recently held X Space has stated otherwise.
One of the project’s contributors Zak Folkman revealed that there will indeed be a token launch. World Liberty Financial will sell a governance token called WLFI, which will “provide the right to make proposals and vote on matters relating to the platform.” The said token will be non-transferrable, and only distributed to eligible investors.
Speaking of regulations, Folkman explained that while WLFI is not considered a security, the token sale will be restricted to accredited investors as a precautionary measure.
“We’ve decided that it’s prudent to limit the token sales to certain persons who would be eligible to participate in transactions that are exempt from registration under the US federal securities law,” he stated, adding, “that means that US persons may only participate in a potential token sale if they have been reasonably verified as accredited investors.”
The decision is intended to ensure compliance with U.S. federal securities laws amid regulatory uncertainties surrounding token sales.
The distribution of the token was also a focal point of discussion. Folkman explained that approximately 63% of the token will be available to the public, and no presale will occur. Additionally, 17% of WLFI will be allocated for user rewards, and 20% will be set aside for team compensation.
The rising buzz around the project has prompted questions regarding its viability.
Is Trump’s World Liberty Financial a Crypto Grift?
While the project has been widely promoted as offering substance, the Trump family’s history of capitalizing on media spectacle and controversy for personal gain has raised questions about the viability and legitimacy of their latest venture.
However, the family has strongly defended the project. Trump emphasized that his appreciation of the asset class stemmed from using crypto as a payment method for his NFT ventures, adding that the latest ventures are targeted at exploring the fast-growing industry to ensure the US’ dominance.
“Because so many people paid this way, I was blown away. I wasn’t overly interested at first to be honest. But I was surprised by the massive amount,” stated Trump, adding that “If we don't do it, China will do it.”
World Liberty Financial has also enlisted industry experts to contribute to the project’s success, including Dough Finance co-founders Zachary Folkman and Chase Herro, who have debunked concerns of nonviability.
Nevertheless, the Trump family’s relatively fresh entry into the crypto space continues to raise questions about their platform’s long-term viability, and it remains to be seen how it will deliver on its promises.
On the Flipside
- A fraudulent token falsely linked to the WLFI project was previously launched and promoted through hacked social media accounts belonging to members of Trump’s family.
- The official telegram channel of World Liberty Financial was targeted by malicious actors to distribute scam links.
- Official WLFI token’s launch and sales have yet to commence, and any circulating tokens claiming affiliation with the project are fraudulent.
Why This Matters
The Trump family has a bold vision for the World Liberty Financial platform, promising to challenge the shortcomings of the traditional financial system with crypto. However, if it fails to deliver on its promises, it risks undermining its intended impact and the Trump family’s credibility.
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