Trump Family Unveils Crypto Project World Liberty Financial, Targeting DeFi Adoption

Former President Donald Trump and his family have officially announced their highly anticipated cryptocurrency project, World Liberty Financial, during a live event on X (formerly Twitter) on September 16, 2024. The project aims to drive mass adoption of stablecoins and decentralized finance (DeFi) while positioning itself as a more accessible alternative to traditional banking.

World Liberty Financial plans to issue a governance token called WLFI, which will be distributed as follows: 63% will be sold to the public, 17% reserved for user rewards, and 20% allocated for team compensation. The token will be non-transferable and offered only to accredited investors under an SEC Regulation D exemption, citing regulatory uncertainty in the United States.

During the two-hour-long livestream, Trump, along with his sons Donald Jr. and Eric, real estate investor Steve Witkoff, and crypto entrepreneurs Zachary Folkman and Chase Herro, discussed the project’s vision. They emphasized making DeFi more user-friendly and accessible to the average American, particularly those who have been underserved or excluded from traditional financial markets.

The platform’s specific features and launch date were not disclosed during the event. However, it was revealed that World Liberty Financial would focus on simple products allowing users to earn yield on their assets, potentially through a borrowing and lending platform built on the Ethereum blockchain.

Trump’s involvement in the crypto project marks a significant shift from his previous skepticism towards digital assets. During the livestream, he acknowledged that conversations with his sons, including 18-year-old Barron, had changed his perspective on the commercial benefits of cryptocurrencies.

The announcement comes as Trump courts the digital asset sector in his bid for re-election, having previously pledged to make the United States the “crypto capital of the planet” if elected. This move has garnered support from prominent figures in the crypto industry, including venture capitalists and exchange founders.

While the project has generated significant interest, some experts have expressed concerns about potential conflicts of interest and the impact on crypto regulation if Trump were to win the presidency. Additionally, the crypto community remains cautiously optimistic about the venture, noting the need for experienced technologists and financial engineers to ensure its safety and effectiveness.

As World Liberty Financial prepares for its official launch, the crypto industry and political observers will be closely watching its development and potential implications for both the financial sector and the upcoming U.S. presidential election.

Photo by Library of Congress on Unsplash