Former President Donald Trump unveiled a new cryptocurrency venture, World Liberty Financial, just 50 days before Election Day. The announcement, made via his social media account on X, provided minimal details about the platform's operations.
World Liberty Financial is positioned to be a crypto banking service, enabling users to borrow, lend, and invest in digital currencies. Cryptocurrencies, which operate independently of traditional banking systems, often involve fees for transactions like Bitcoin withdrawals.
The project will be overseen by Trump's sons, Eric and Donald Jr., who stated that it aims to "make finance great again." They also revealed the platform will introduce its own digital token, WLFI. According to CNBC, 20 per cent of these tokens will go to the founding team, which includes the Trump family.
Cryptocurrencies are traded through decentralised systems known as DeFi, which use blockchain technology to eliminate the need for traditional brokers and banks. However, these platforms often rely on online exchanges that charge fees to convert digital assets into fiat currencies, like the US dollar.
As reported by Euro News, while decentralised finance offers new opportunities, critics warn that the lack of regulation makes these systems vulnerable to hacks and other risks. In contrast, Europe has already implemented stricter regulations on the crypto market, with its Markets in Crypto-Assets Regulation.
Growing Interest In Crypto
Despite scepticism, interest in cryptocurrency is growing. As per the Euro News report, data from Security.org indicates that around 93 million Americans, or 40 per cent of adults, now hold some form of crypto, a significant increase from 30 per cent in 2023.
This new venture marks a significant shift in Trump’s stance on digital currencies. Less than three years ago, he labelled Bitcoin a "scam" and expressed concerns about its impact on the US dollar. However, by 2024, he began accepting crypto donations and even addressed the Bitcoin 2024 conference, promoting his vision of the US as a "Bitcoin superpower" by relaxing regulations.
While Trump is listed as the "chief crypto advocate" for World Liberty Financial, it remains unclear how deeply involved he is in the day-to-day operations. His sons Eric and Donald Jr. are labelled as "Web3 Ambassadors," and his youngest son, Barron, is described as the “chief DeFi visionary." A disclaimer in the project’s white paper notes that the Trumps do not directly own or manage the venture, but may still receive compensation.
Critics have raised concerns that Trump could be using his political campaign to bolster personal business ventures, a tactic he’s employed in the past with branded merchandise during his 2024 presidential run.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.