Former President Donald Trump announced a new cryptocurrency venture, World Liberty Financial, just 50 days before Election Day. The announcement, made through X's social media accounts, provided minimal details about the platform's operations.
World Liberty Financial is positioned as a cryptocurrency banking service that allows users to borrow, lend, and invest in digital currencies. Cryptocurrencies that operate independently of the traditional banking system often come with fees for transactions such as Bitcoin withdrawals.
“We want to return equal economic opportunity to the American people!!!”
– World Liberty FinancialOur governance tokens can only be purchased by accredited investors 😑
14% of Americans qualify as accredited investors. 10 to 11 percent qualify through wealth ($1 million or more), but that's not all… pic.twitter.com/akpf05cpCn
— Mrs. Hexican (@MrsHexican) September 17, 2024
The project was overseen by President Trump's sons Eric Jr. and Donald Jr., who said it was aimed at “making finance great again.” The platform also announced that it will be introducing its own digital token, WLFI. According to CNBC, 20 percent of these tokens will be donated to the founding team, which includes the Trump family.
Cryptocurrencies are traded through a decentralized system known as DeFi, which uses 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 such as USD.
As Euro News reported, while decentralized finance brings new opportunities, critics warn that a lack of regulation leaves these systems vulnerable to hacking and other risks. In contrast, Europe has already introduced stricter regulations on the crypto market with the Crypto Asset Market Regulation.
Growing interest in virtual currency
Despite skepticism, interest in cryptocurrencies is growing. According to a Euro News report, approximately 93 million Americans, or 40 percent of adults, currently own some form of crypto assets, up from 30 percent in 2023, according to data from Security.org. It is increasing.
This new venture marks a major change in President Trump's stance on digital currencies. Less than three years ago, he called Bitcoin a “scam” and expressed concern about its impact on the US dollar. However, by 2024, he began accepting cryptocurrency donations and also spoke at the Bitcoin 2024 conference, promoting his vision of making the United States a “Bitcoin superpower” by loosening regulations.
Trump has been named World Liberty Financial's “chief cryptocurrency advocate,” but it remains unclear how deeply involved he is in the company's day-to-day operations. Sons Eric and Donald Jr. are referred to as “Web3 Ambassadors” and youngest son Barron is described as a “leading DeFi visionary,” but a disclaimer in the project’s white paper states that the Trumps are It states that it is not directly owned or managed. Adventurous, but still potentially rewarding.
Critics have expressed concern that Mr. Trump is trying to use his political campaign to promote his personal business, and that Mr. Trump has used branded products in the past in the 2024 presidential race. I have also used different tactics.
Disclaimer: Crypto products and NFTs are unregulated and can be extremely risky. Regulatory remedies may not be available for losses from such transactions. Cryptocurrencies are not legal tender and are therefore subject to market risks. Readers are advised to seek professional advice and carefully read the offer document together with relevant key literature on the subject before making any type of investment. Cryptocurrency market predictions are speculative and investments are made at the reader's sole expense and risk.
