Will Trump’s involvement in World Liberty Financial attract more investors, or will it increase the scrutiny on a project that is already raising eyebrows due to its controversial token distribution and governance? Experts weigh in.
Table of Contents
Trump strikes again
Behind the scenes of World Liberty Financial
WLF addresses concerns and social media reactions
Ambition meets controversy – what experts are saying
Trump strikes again
2024 has been a whirlwind for former President
Donald Trump
, with his name frequently
making
headlines — not just for his political ambitions but also for his growing interest in crypto. The latest buzz? His
newest
venture — World Liberty Financial, which is set to officially launch on Sep. 16.
World Liberty Financial is positioned as a platform aimed at empowering everyday people by giving them more control over their finances.
A recent podcast appearance by Trump confirmed the launch date, with WFL’s X page following up with an announcement: a live event from Mar-A-Lago on September 16 at 8 PM EST, where Trump will unveil the project’s vision for “making finance great again.”
Reports
suggest
that Trump has assumed the title of “Chief Crypto Advocate,” while his sons, Eric Trump and Donald Trump Jr., serve as “Web3 Ambassadors.”
The project’ goal is to disrupt the traditional financial system and offer
decentralized finance
as an alternative. However, skeptics are questioning whether this is a genuine attempt at financial innovation or simply another branding exercise by the Trumps to leverage their fame.
Concerns have also surfaced about the project’ legitimacy. Zachary Folkman and Chase Herro, both tied to the platform’ operations, were previously involved in Dough Finance—a blockchain app that was hacked
recently
.
So, what is World Liberty Financial really aiming to achieve? Will it live up to its promises, or is it just another play on Trump’ reputation? Let’s dive into the controversies and what industry experts are saying about this bold new crypto platform.
Behind the scenes of World Liberty Financial
World Liberty Financial, on the surface, promises big things—decentralization, financial freedom, and turning the U.S. into the “crypto capital of the planet.” But when you dig a little deeper, things start to look a bit murky.
CoinDesk recently obtained a leaked draft of the project’ white paper, and it raises some eyebrows. While World Liberty Financial may preach power to the people, the numbers suggest otherwise.
According to CoinDesk, a staggering 70% of WLFI—the governance token of the project—will be held by the founders, team members, and service providers.
Only 30% is expected to be available for public sale, and even that isn’t fully going to the public. Some of the money raised from the sale will be funneled back to project insiders, with a portion set aside in a treasury to support WLF’ operations.
Moreover, the project’ plans appear to be far from finalized. A source close to the project told CoinDesk that while a draft white paper exists, the team is still figuring out the details.
“We’re not quite sure which version you are referring to,” said a representative of World Liberty Financial, noting that the official details would be released via their social media channels like Twitter (X) and Telegram.
In a recent X post on Sep. 4, World Liberty Financial made bold claims about its future, stating, “Our plan will speak for itself. The brightest minds in crypto are backing us, and what’s coming will make all doubters think twice.”
Another controversy revolves around the governance of WLFI tokens. According to the white paper, all tokens will be non-transferable and locked indefinitely unless protocol governance procedures unlock them.
But even this comes with legal caveats, as the white paper mentions that purchases will be screened to ensure they comply with U.S. sanctions laws.
Interestingly, the white paper refers to FinCEN, a U.S. Treasury Department office focused on financial crimes, but the reference seems to be an error. It should likely refer to the Office of Foreign Assets Control (OFAC), which enforces economic and trade sanctions.
Supporters of Donald Trump within the crypto community are also cautious. While they see potential in Trump’ pro-crypto stance, some worry that World Liberty Financial’ structure could backfire, especially if it turns out to be more about enriching insiders than creating a decentralized financial system for all.
WLF addresses concerns and social media reactions
In a recent X thread, WLF addressed the swirling rumors around its project, offering a mix of lofty promises and defensive remarks.
As expected, WLF is framing itself as an innovative force in crypto, claiming that what it is building will have an impact not just on DeFi, but also on the future of the U.S. economy, especially with the upcoming elections.
WLF highlighted its partnership with security firms such as Zokyo and PeckShield, a move that signals their awareness of the risks in DeFi. Given that DeFi projects are frequent targets of hacks, with millions lost each year, this could be their way of reassuring investors. However, their claim that “our code has been thoroughly reviewed” might not be enough to erase concerns.
The thread also shed light on WLF’ mission to push the U.S.-pegged
stablecoins
as the world’ settlement layer, ensuring the dollar’ dominance for the next century. This idea of “crypto as the savior of the U.S. dollar” is ambitious, but some might find it overreaching.
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Stablecoins have been growing in importance, yes, but the claim that they will ensure the U.S. dollar remains the backbone of global finance is a long shot, especially given regulatory crackdowns and international resistance to U.S. financial influence.
The mention of foreign nation-states “attacking” the dollar adds a layer of political posturing to WLF’ financial goals. While it’s clear that WLF is trying to tap into nationalist sentiment to boost its project, experts will likely be watching closely to see how this narrative unfolds—and whether it gains traction.
While WLF’ Twitter thread paints a picture of confidence, the crypto community remains divided.
Nic Carter, a well-known figure in the space, raised key concerns. He questioned whether WLF could actually damage Trump’ electoral prospects, highlighting the risks of it being hacked or targeted by the SEC. He described it as “at best an unnecessary distraction, at worst a huge embarrassment.”
His worries aren’t unfounded—any mishap with WLF could become political fodder, and given the uncertainty surrounding its tokenomics and legal standing, it’s a valid concern.
On the other hand, supporters like Steve Witkoff see WLF as an opportunity for financial inclusion. Witkoff likened it to his own entrepreneurial journey, explaining how he once relied on a personal loan from his father to start his business.
In his view, WLF’ DeFi platform could open doors for those locked out of traditional credit systems. “Our credit markets are the best in the world,” he said, “but still lock out many from borrowing.”
Ambition meets controversy – what experts are saying
As the dust settles around World Liberty Financial, the stakes couldn’t be higher. To understand the potential impact, crypto.news reached out to industry experts, and their responses were anything but sugar-coated.
Adam O’Neill, Chief Marketing Officer at Bitrue, weighed in on the implications of the Trump family’ sudden plunge into the crypto world.
However, O’Neill wasn’t about to let early controversies slip by unnoticed. He pointed out that the initial optimism is already being overshadowed by red flags surrounding the project.
That skepticism is shared across the industry. Yuriy Brisov, Partner at D&A Partners, didn’t hesitate to raise concerns about the concentration of power behind the project. For a platform touting decentralization, the numbers tell a troubling story.
Brisov went even further, digging into the political implications of Trump’ involvement. Could this project become an ethical minefield if Trump returns to the presidency?
With Trump’ name tied to it, World Liberty Financial could end up influencing more than just the markets—it could sway votes too. Suraj Sharma, Global Head of Public Policy at BitBNS, warned that the project might be a double-edged sword for Trump’ campaign.
O’Neill echoed this sentiment, cautioning that the controversies could severely damage both the project’ credibility and Trump’ image.
While the political and financial stakes are clear, the technical underpinnings of the project leave much to be desired. Mehow Popieszalski, CEO of MatterFi, critiquing the leaked whitepaper, offered a blunt assessment of the project’ innovation.
As concerns mounted, Brisov once again referenced the potential legal challenges ahead. The structure of the project, he said, could draw serious regulatory scrutiny from U.S. authorities.
Adding to the legal complexities is the project’ murky approach to KYC and AML compliance. Brisov was quick to call out the risks associated with inadequate regulatory measures.
With these mounting concerns, Sharma circled back to the potential political consequences. Trump’ deep involvement in WLF, he suggested, could alienate key voter demographics.
Popieszalski offered a reminder of the technical challenges ahead, warning that hype alone won’t carry World Liberty Financial to success.
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