Former President Donald Trump, now running for the 2024 Republican presidential nomination, has been promoting a new and ambitious cryptocurrency project.
Dubbed World Liberty Financial, this platform is poised to serve as a crypto banking platform, with the Trump family holding 70% of the equity — an unusually large stake in a crypto venture, according to industry experts.
Early descriptions of the project suggest that users will be able to borrow and lend cryptocurrencies on the platform, while original investors stand to earn profits through various fees.
The project is backed by the Trump family, with Donald Trump Jr., Eric Trump, and Barron Trump actively involved.
L-R: Eric Trump, Barron Trump and Donald Trump, Jr.
Barron is reportedly the “Chief DeFi Visionary,” a title that reflects the family’s push to appeal to younger crypto enthusiasts.
However, despite the fanfare and the grand promises of financial revolution, the platform’s exact details remain murky.
In a recent X Spaces event, former President Trump finally gave cryptocurrencies their first mention, more than an hour into his speech.
He noted that it was his children, particularly Barron, who introduced him to the world of crypto.
Trump added that his youngest son has multiple crypto wallets, saying,
"Barron knows so much about this."
However, Barron was absent from the live discussion when organisers attempted to bring him into the conversation.
A pivotal player in the World Liberty Financial venture is Steve Witkoff, a longtime friend and political donor of Trump.
Witkoff is part of the small group of founders who hold the majority stake in the project.
He recounted how he was introduced to decentralised finance by two crypto entrepreneurs, Chase Herro and Zak Folkman, through his son.
Witkoff spoke highly of their intelligence and compared them to seasoned currency traders, explaining why he believed the Trump family was well-suited to understand and back this new financial system.
Witkoff explained during the X Spaces event,
"As I began to understand that, I said, 'Who would understand this better than the Trump family?'"
He has been working on the project alongside Eric and Don Jr. for about nine months.
Interestingly, 70% equity stake for the founding members, including the Trumps and Witkoff, is far larger than typical in the industry.
Most crypto platforms distribute around 20% of equity to founders.
This has raised eyebrows among crypto venture capitalists, especially since both Eric Trump and Witkoff are newcomers to the cryptocurrency world.
Throughout his 40-minute fireside chat, Trump touched on his general views about the cryptocurrency sector and his growing interest in it.
Initially dismissive, his stance evolved after seeing the success of his Trump-branded non-fungible tokens (NFTs).
Trump remarked,
"I think my children opened my eyes more than anything else."
He also discussed the perceived hostility of the Securities and Exchange Commission (SEC) towards the crypto industry, claiming that the SEC’s chair, Gary Gensler, is regulating by enforcement rather than by establishing clear rules.
This concern is echoed by many in the crypto sector, who feel that Gensler’s leadership has stifled innovation.
Trump’s criticism of the SEC, while rallying support for World Liberty Financial, comes at a time when he has positioned himself as a pro-crypto candidate.
His promise to make the U.S. the “crypto capital of the planet” stands in stark contrast to his earlier views, where he denounced Bitcoin as a “scam.”
The shift in Trump’s stance on crypto hasn’t gone unnoticed.
Industry figures welcomed his newfound advocacy but expressed cautious optimism.
Trump’s sons have been actively promoting the project on X (formerly Twitter) and Telegram, showcasing the family’s deep involvement.
Donald Trump Jr., in particular, has framed the project as a solution to the problems within the traditional financial system.
During the livestream event, he said,
“It’s a real problem that needed to be addressed, and honestly I think this is the way.”
The move to decentralised finance (DeFi), as World Liberty Financial proposes, aims to eliminate intermediaries like banks and provide greater access to financial services.
Yet concerns remain about the feasibility of the project.
With the Trump family and Witkoff controlling such a large stake, many in the crypto space are worried about the platform’s long-term viability, especially as several of the key players are new to the sector.
The anonymity of the responses to press inquiries further fuels scepticism.
For instance, when CNBC sent questions to the World Liberty Financial press team, they received a cryptic reply from an anonymous Gmail account, adding to concerns about the transparency and readiness of the project.
The project’s white paper, which is typically a crucial document for any crypto venture, is reportedly only available to those who sign a non-disclosure agreement (NDA), creating even more opacity around the venture.
As Witkoff and Trump continue to discuss World Liberty Financial, many have drawn comparisons to Trump’s other venture, Trump Media Technology Group (TMTG), which includes the conservative social media platform Truth Social.
Much like the crypto project, TMTG has boosted Trump’s profile and net worth, while also aligning with his political messaging.
The founding team for World Liberty Financial includes not only the Trump family but also Witkoff’s son, Zach Witkoff, further solidifying the tight-knit group behind the venture.
Despite the Trump family’s involvement, Bloomberg has reported that World Liberty Financial will not be owned, managed, or operated by the family.
This distinction is crucial as Trump navigates potential ethical conflicts of running a business while campaigning for president.
Critics, such as Jordan Libowitz from the watchdog group Citizens for Responsibility and Ethics in Washington, have raised concerns about Trump using his pro-crypto stance to benefit financially.
Libowitz pointed to the ethical dilemma of a presidential candidate launching a for-profit venture during a campaign, stating,
"The troubling aspect is doing it while starting a way to personally benefit from it."
As of now, much about World Liberty Financial remains unclear.
While the Trump family has publicly embraced the project, experts continue to question the long-term strategy and motivations behind it.
Industry insiders worry that Trump’s pivot to crypto may backfire, particularly if the platform fails to launch as promised.
Supporters of the former president, however, see his embrace of decentralised finance as a potential boon for the industry, especially if he succeeds in retaking the White House in 2024.
With just 50 days until the presidential election, Trump’s crypto foray adds yet another layer of intrigue to an already unpredictable race.
Whether World Liberty Financial will succeed or become another controversial Trump business venture remains to be seen.
For now, the eyes of the crypto world are on Trump and his family as they seek to establish themselves as major players in the digital finance revolution.
Beeple is an American graphic designer, digital artist, and animator, known for making comical and often surreal multimedia works with social and political messages. Beeple has a net worth of $50 million.
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