Former US President Donald Trump has introduced a new cryptocurrency venture called World Liberty Financial, approximately seven weeks before Election Day. The announcement, made on his social media platform X, provided limited information about the project’s operations.
World Liberty Financial is described as a cryptocurrency banking service that allows users to engage in borrowing, lending, and investing in digital currencies. Cryptocurrencies, which function outside traditional banking systems, typically involve fees for transactions such as Bitcoin withdrawals.
Trump’s sons, Eric and Donald Jr., will oversee the project, stating its goal is to “improve finance.” They also announced the introduction of a proprietary digital token, WLFI. According to CNBC, 20% of these tokens will be allocated to the founding team, which includes the Trump family.
“We want to return equal financial opportunity to Americans!!!”
— Mrs. Hexican (@MrsHexican) September 17, 2024
– World Liberty Financial
Our governance token is only available to purchase by accredited Investors 😑
14% of Americans qualify as an Accredited Investor. 10-11% qualify from wealth ($1m+), not solely… pic.twitter.com/akpf05cpCn
Cryptocurrencies are exchanged through decentralized systems known as DeFi, which utilize blockchain technology to eliminate the need for conventional intermediaries like brokers and banks. However, these platforms often rely on online exchanges that charge fees for converting digital assets into traditional currencies, such as the US dollar.
Euro News reports that while decentralized finance presents new opportunities, critics caution that the lack of regulation makes these systems susceptible to security breaches and other risks. In contrast, Europe has already implemented more stringent regulations on the cryptocurrency market with its Markets in Crypto-Assets Regulation.
Increasing Popularity of Cryptocurrency
Despite skepticism, cryptocurrency adoption is on the rise. According to Euro News, data from Security.org shows that approximately 93 million Americans, or 40% of adults, now own some form of cryptocurrency, a significant increase from 30% in 2023.
This new venture represents a notable change in Trump’s position on digital currencies. Less than three years ago, he referred to Bitcoin as a “scam” and expressed concerns about its impact on the US dollar. However, by 2024, he began accepting cryptocurrency donations and even spoke at the Bitcoin 2024 conference, promoting his vision of the US as a “Bitcoin superpower” through reduced regulations.
While Trump is listed as the “chief crypto advocate” for World Liberty Financial, his level of involvement in daily operations remains unclear. His sons Eric and Donald Jr. are designated as “Web3 Ambassadors,” and his youngest son, Barron, is described as the “chief DeFi visionary.” A disclaimer in the project’s white paper states that the Trumps do not directly own or manage the venture but may still receive compensation.
Critics have expressed concerns that Trump might be using his political campaign to support personal business ventures, a strategy he has employed previously with branded merchandise during his 2024 presidential campaign.
