Donald Trump has officially announced the launch date for his World Liberty Financial cryptocurrency project as September 16, 2024.
In a video on his X account, President Trump called on his fans to accompany him to a live event on Twitter Spaces that night. Emphasizing his departure from traditional banking, President Trump said in his speech:
“We are embracing the future with cryptocurrency and leaving slow, outdated big banks behind.”
Trump and the New Era of DeFi
World Liberty Financial is positioned as a decentralized finance (DeFi) platform that aims to disrupt the traditional financial system. The project has been in development for several months and is led by President Trump's sons, Donald Jr. and Eric Trump.
The platform will reportedly run on the Aave protocol within the Ethereum blockchain and will feature a credit account structure to allow users to more efficiently borrow and lend money.
.World Liberty pic.twitter.com/rHEGQXl4jL
— Donald J. Trump (@realDonaldTrump) September 12, 2024
The project is also expected to promote the use of stablecoins pegged to the US dollar and strengthen America's global financial influence.
The Trump family has been hinting at their involvement in the cryptocurrency industry for some time, with Donald Jr. and Eric Trump hinting at upcoming projects involving digital currencies earlier this summer.
This has sparked interest and speculation in both political and Bitcoin circles, with the project’s white paper stating its aim to drive mainstream adoption of DeFi, with the aim of offering consumers an alternative to traditional banking services in mind.
As of today, the market cap of cryptocurrencies stood at $1.9 trillion. Chart: TradingView.com
Security concerns and criticisms
As the launch date nears, concerns have emerged about the project's security and openness, with critics, including Rep. Maxine Waters, calling attention to the dangers associated with DeFi, such as vulnerability to hacks and fraud.
Waters specifically cited World Liberty Financial as an example, urging consumers and investors to be cautious, and further casting doubt on the project's legitimacy: the company's website uses a privacy service that has been linked to past cybercriminal activity.
Despite the criticism, other parts of the crypto community have welcomed the initiative. Some see it as a bold move that will help align the monetary direction of the U.S. Others, particularly Trump supporter and Castle Island Ventures partner Nick Carter, have expressed concern that the effort could become a simple money grab and undermine the trust the crypto industry has built over the years.
Political situation
The timing is quite interesting considering the debut comes just weeks before the US presidential election, when President Trump has changed his stance on cryptocurrencies, having previously called Bitcoin a “fraud.”
Trump's sudden embrace of digital assets appears to be a calculated move to garner support from the emerging cryptocurrency community. During his campaign, Trump promised to fire current SEC Chairman Gary Gensler if re-elected, signaling his desire for a more favorable regulatory environment for cryptocurrencies.
Featured image from www.history.com, chart from TradingView
