- Trump family announced the launch of its crypto platform World Liberty Financial and the WLFI token
- 63% of tokens will be available for purchase by the general public, 20% for founders, and 17% for user rewards
- Trump used increasing optimism regarding crypto in the 2024 election campaign
- Anyway, it could affect Trump’s political and personal relationship with the crypto sector
The Trump family on Monday announced their cryptocurrency project World Liberty Financial, which will include issuing WLFI tokens and creating a cryptocurrency platform.
The project promises to attract investors and offer new opportunities for borrowing and lending in digital assets. The development comes amid Trump’s ambitions to continue expanding his presence in the cryptocurrency sector.
World Liberty Financial Launch and Token Structure
At an event at X, the World Liberty Financial team unveiled details of the cryptocurrency project, revealing the WLFI token structure.
World Liberty Financial will function as a crypto platform, offering borrowing, lending, and investing services in cryptocurrencies. The founders emphasize that WLFI tokens will be offered in compliance with SEC Regulation D, allowing for capital raising without prior securities registration.
Project founder Zach Folkman revealed that 20% of the tokens will be allocated to the founding team, which includes members of Trump’s family, 17% for user rewards, and 63% of the tokens will be available for purchase by the general public. Importantly, there will be no presales or early investments, which is meant to avoid speculation and ensure fair availability of tokens.
Witkoff, a longtime friend of Trump’s, commented on the key role of Chase Herro and Zak Folkman:
“My son introduced me to two partners, Chase Herro and Zak Folkman, who are exceptionally bright people …These guys are as smart as any currency traders I’ve ever met. And they began talking to me about decentralized finance, which means frictionless finance, and why it made sense for people. And about the forgotten, who can’t get credit out there?
As I began to understand that, I said, ‘Who would understand this better than the Trump family?’ And we had a meeting initially with Eric, Don Jr., and the president and his counsel. And we said, ‘Let’s go pursue it.’ We’ve been on it for close to nine months.”
Trump’s Political Campaign and Crypto Ambitions
World Liberty Financial’s initiative coincided with the active phase of Donald Trump’s presidential campaign. Despite initial skepticism, Trump changed his mind about cryptocurrency after the successful sales of his NFTs. During the event, he noted,
“Crypto is one of the things we have to do.” This statement reinforced Trump’s perception as a supporter of decentralized finance and cryptocurrencies.
However, not everyone in the crypto community is confident in the success of this initiative and some investors have expressed concern that Trump’s involvement in the crypto project could hurt his political relationship with the sector, especially if the project faces difficulties in implementation.
Also, there are some considerations regarding the extensive influence on the project from the Trump family, but the project’s white paper – key figures listed the next way – Barron as “Chief DeFi Visionary,” Eric and Donald Jr. as “Web3 Ambassadors,” and Trump Sr. as “Chief Crypto Advocate.”
So according to Trump family statements, while they will receive compensation from the project, the platform itself is “not owned, managed, operated or sold” by members of the Trump family.
Conclusions
So, the previously announced major crypto project that we have previously heard hints of is set to become a reality very soon, and we can assume that the plans for it are serious.
This should be very good news, especially in the aftermath of the recent decreasing ratings after an unsuccessful debate for Donald Trump.
Let’s see how the project develops, how the crypto community reacts to it, and how the US election 2024 will affect it.
