In his recent appearance on X (formerly Twitter), Donald Trump didn’t directly address the launch of his family’s new crypto platform, World Liberty Financial. The former U.S. president instead participated in an interview with crypto influencer Farokh Sarmad on 16 September, which marked his first public engagement following an alleged assassination attempt just a day earlier. He briefly discussed the incident before moving on to his main topic.
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Although the livestream was promoted as a “State of Crypto” address, it took Trump over 16 minutes to even mention the word "crypto". His comment was vague: “We’re going to make our country greater than ever before, and you’re going to be happy, and you’re going to love your crypto.”
For over 45 minutes, Trump spoke generally but refrained from delving into the specifics of World Liberty Financial, which remains largely a mystery. However, well into the broadcast, Zak Folkman, one of the platform’s leaders, finally provided more information about the project’s token.
Token Structure Lacks Clarity
Reading from a prepared statement, Folkman announced the introduction of WLFI tokens. These tokens are classified as governance tokens, allowing holders to make proposals and vote on decisions relating to the platform. However, they are non-transferrable and do not carry financial value, limiting their use to governance purposes only.
He also mentioned that token sales would be restricted to accredited investors in the United States due to regulatory uncertainties in the crypto space. Folkman further indicated that international sales would be subject to additional restrictions, though no further explanation was provided.
Token Allocation and Transparency Questions
One key detail Folkman shared was that 63% of WLFI’s token supply would be made available to the public. The remaining tokens are divided, with 20% allocated to the platform’s team and advisers, while 17% is earmarked for user rewards.
There were, however, inconsistencies regarding the total token distribution. An earlier draft of the white paper suggested a significantly higher proportion—70%—would be reserved for the team. No explanation was provided for this discrepancy.
Unlike many blockchain projects, Folkman highlighted that there were no presales or discounted early buys for venture capitalists. This was positioned as a move towards fairness, though the 20% team allocation still leaves some questions about equity among potential users.
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Platform Uncertainty and Trump’s Shift in Crypto Stance
Details surrounding the actual functionality of World Liberty Financial remain sparse. The platform is reportedly intended to operate as a decentralised finance (DeFi) service for borrowing and lending, potentially in collaboration with Aave, a well-established DeFi application. A previous white paper draft also mentioned plans to promote the widespread adoption of stablecoins. However, these claims have not been thoroughly expanded upon.
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Interestingly, Trump’s perspective on cryptocurrency has shifted significantly over time. In 2019, he criticised crypto, saying its value was “based on thin air”. However, since then, he has embraced the industry, launching NFT collections and accepting crypto donations for his campaigns, with promises of becoming a “crypto president.”
Uncertain Prospects
Despite Trump’s involvement and the intriguing nature of the project, the lack of clear information and transparency leaves World Liberty Financial in a precarious position. Folkman’s statements, though informative, do little to assuage concerns regarding the platform’s direction and the true nature of the token offering.
In conclusion, while the Trump family’s crypto venture is generating attention, the current lack of clarity and inconsistency in details raises doubts about its future. As more information emerges, investors and enthusiasts will need to approach with caution, especially given the volatile regulatory environment in the U.S. crypto space.
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