Trump's Pet Crypto Project Launches Whitelist Process

World Liberty Financial, a decentralised finance (DeFi) project backed by the Trump family, has officially launched its Know Your Customer (KYC) verification process for the WLFI governance token sale on its website.

Focused on providing financial services without traditional intermediaries, the project requires users to complete KYC verification to access further project information.

The leadership team includes Donald Trump's sons—Donald Jr., Eric, and Barron—alongside Chase Herro and Zachary Folkman, who are also key contributors.

World Liberty Financial Whitelist Excludes US Retail Investors

In a recent announcement on X (formerly known as Twitter) by Donald Trump, World Liberty Financial (WLFI) has officially launched its KYC verification process, positioning itself as part of a broader initiative to establish the United States (US) as a leader in cryptocurrency.

This project continues Trump's "Make America Great Again" vision, inviting early participants to join the whitelist for the WLFI governance token sale.

While non-US individuals can sign up without income restrictions, access for US residents is limited to accredited investors, as defined by the SEC.

To qualify, individuals must have a net worth of at least $1 million (excluding primary residence) or meet income thresholds of $200,000 per year individually, or $300,000 with a partner, over the last two years, with the expectation of maintaining that income.

The WLFI platform, built on the Ethereum blockchain, will offer borrowing and lending services for digital assets.

Due to current SEC regulations, many Americans are excluded from the initial offering.

The WLFI team attributed this to "outdated US policies" and expressed intent to advocate for policy changes.

KYC verification requires users to submit identification documents, such as a passport or driver's license, to meet anti-money laundering (AML) standards.

WLFI did not specify how long whitelist approvals would take but stated:

“We plan for all Americans to be able to use this platform in the future, giving everyone access to the tools and opportunities that have been restricted for far too long.”

Meanwhile, three fake versions of the WLFI token have reportedly emerged since the whitelist announcement, according to DEX Screener.

Governance Token of World Liberty Financial, WLFI

Around mid-September, World Liberty Financial officially unveiled its governance token during a two-hour plus live stream event on X Spaces.

Unlike traditional cryptocurrencies, WLFI tokens are non-fungible and exclusively dedicated to governance.

Token holders will have the ability to propose initiatives and cast votes on the platform's future direction, but the tokens do not represent profit, loss, or equity in the platform.

In terms of distribution, 63% of the tokens will be allocated for the public sale, 17% reserved for rewards and incentives, and 20% for team compensation.

However, the sale is limited to accredited investors, meaning the general public will be excluded from participating.

Crypto Community's Apprehension & Concerns

The Trump-backed World Liberty Financial project has garnered attention not only for its political ties but also for the potential regulatory risks it faces.

Charles Hoskinson, creator of the Cardano blockchain, warned that the project's association with a political figure could attract scrutiny from US authorities, including the Department of Justice and the SEC.

He also noted that linking a DeFi platform to political affiliations could polarise perceptions within the crypto space, creating unique challenges that other platforms may not encounter.

The launch of World Liberty Financial has also drawn criticism from within the crypto community.

Ed Krassenstein, a prominent crypto enthusiast, voiced his concerns on X.

He shared further on his own account.

Influencer Colin Talks Crypto questioned the timing and reasoning behind Trump's decision to release a DeFi platform:

“I think it's unwise for you to release a DeFi protocol. You should limit yourselves to making crypto safe for the crypto space. The majority of people will end up losing money during the next bear market and you will be the one that they will pin the loss on. Not something a president should be connected with.”

These critiques highlight the controversial nature of mixing politics with DeFi.