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Donald Trump Announces the Launch of World Liberty Financial Crypto Platform

AuthorSyed Ali Haider
Crypto News Author
Fact Checked by Joshua Downes
Last updated: September 13, 2024
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Donald Trump Announces the Launch of World Liberty Financial Crypto Platform

Highlights:

  • Donald Trump announced World Liberty Financial’s launch date and invited followers to join him on September 16.
  • Based on Ethereum and Aave, the project will offer digital wallets, borrowing, lending, and investment options.
  • Concerns have arisen over the project’s transparency, ties to Dough Finance, and potential political conflicts of interest.

Republican presidential candidate Donald Trump officially announced the launch date of his family’s long-teased crypto project, World Liberty Financial (WLFI). In a Sept. 12 video posted to X (formerly Twitter), he invited followers to join him live on Twitter Spaces at 8 p.m. next week on September 16 for the launch.

Trump stated, “We’re embracing the future with crypto and leaving the slow and outdated big banks behind.” Earlier this summer, Donald Trump Jr. and Eric Trump hinted at the project, teasing a major crypto-related announcement in August. 

Trump has previously posted several cryptic updates about World Liberty Financial, vaguely suggesting it as a decentralized finance (DeFi) platform for borrowing and lending.

According to a whitepaper released earlier this month, World Liberty Financial is set to be built on the Ethereum blockchain and the DeFi platform Aave. The project will enable users to store funds in a digital wallet, provide a credit account system, facilitate borrowing or lending of cash, and use tokens to invest in assets such as cryptocurrencies. Statements from World Liberty Financial have also indicated a desire to promote the use of U.S. dollar-pegged stablecoins within DeFi.

World Liberty Financial Raises Transparency and Political Concerns

WLFI plans to raise $540 million through a token sale, offering 30% of the project’s tokens, while the remaining 70% has reportedly been allocated to insiders. This has raised concerns about transparency and fairness. Additionally, on-chain analysts have found connections between WLFI and Dough Finance, a DeFi protocol that suffered a hack earlier this year, which has fueled the controversy.

The Trump family’s involvement in World Liberty Financial has also sparked political debates, raising questions about whether the project focuses on decentralized finance innovation or personal business interests.

Ethics experts have raised concerns about potential conflicts of interest, suggesting that although the venture may not breach current legal standards, it could undermine public trust and the integrity of the political process. Additionally, some have noted that Trump’s promotion of his sons’ project might complicate his political ambitions if he runs for office again.

Representative Maxine Waters has expressed concerns, stating that DeFi can lead to hacks, scams, and unequal access to information.

Waters said:

“While decentralized finance, or DeFi, aims to create greater efficiencies and transparency, it can also pose heightened risks of hacks, scams, unequal information and conflicts of interest that can harm consumers and investors. We’ve seen this play out in the new DeFi venture that Eric Trump and Donald Trump Jr. plan to launch, called World Liberty Financial.” 

Trump’s Crypto Shift

In his bid for reelection this year, Trump has adopted a positive stance towards the crypto community, a significant shift from his previous negative views. He even spoke at the Bitcoin 2024 conference earlier this summer, stating that he would fire SEC Chair Gary Gensler if reelected. Additionally, he announced plans to halt any sales of the U.S. government’s 213,000 bitcoin holdings.

Earlier this month, Dolomite co-founder Corey Caplan joined World Liberty Financial as an advisor. Shortly after, the project announced its commitment to prioritizing security and promoting the adoption of stablecoins. Leading cybersecurity firms such as Zokyo, Fuzzland, and PeckShield have reviewed the project’s code to ensure user safety. This happened just two days after Lara and Tiffany Trump’s X accounts were hacked and used to post about a token supposedly linked to World Liberty Financial. 

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