Trump Family Supports Cryptocurrency Project, Public Can Purchase 60% of Coins

Former US President Donald Trump has once again made headlines for his pro-crypto stance. A new cryptocurrency project supported by the Trump family, World Liberty Financial, officially revealed details on Monday.

On Monday evening, Eastern Time, September 16, Trump disclosed the establishment of World Liberty Financial to his over 90 million followers on the social media platform X. Media summaries indicate that during his live broadcast on X that night, Trump did not specifically introduce the project but broadly discussed the blockchain industry, his successful non-fungible tokens (NFTs), and the learning curve of cryptocurrency generations.

Media reports pointed out that over the past month, Trump and his family have been vigorously promoting World Liberty Financial with vague descriptions, pledging it will accomplish many things simultaneously. Wall Street News previously mentioned that at the end of last month, Trump posted on X stating his plan to "ensure the United States becomes the global cryptocurrency capital," tagging a decentralized finance (DeFi) project named World Liberty Financial. This project has recently been promoted by Trump's son.

On Monday night, the World Liberty Financial team introduced the project during a live broadcast on X, stating that it will serve as a cryptocurrency banking platform encouraging the public to borrow, lend, and invest in cryptocurrencies. The platform will launch a token called WLFI.

Zak Folkman of World Liberty Financial mentioned that the ownership structure of the WLFI token will be: 20% allocated to the founding team including the Trump family, 17% reserved for user rewards, and the remaining 63% available for public purchase. There will be no presale of tokens.

Media sources noted that an internal draft outline of the World Liberty Financial project previously revealed that founders would hold 70% of the shares, raising concerns that the project might be a scheme for quick wealth accumulation.

Earlier comments suggested that Trump's current stance on cryptocurrencies represents a significant turnaround from his past views, where during his presidency, he considered cryptocurrencies to be a criminal scam. His support for the cryptocurrency industry has garnered endorsements from some figures within the industry, including prominent venture capitalists Marc Andreessen and Ben Horowitz.

At the Bitcoin 2024 conference at the end of July, Trump also made a series of notable commitments to the crypto community, such as making the US the first country to designate Bitcoin as a strategic reserve asset, dismissing the current SEC chairman viewed as hostile to the cryptocurrency industry, establishing a Bitcoin and Cryptocurrency Presidential Advisory Council, and encouraging power plants to strengthen electricity supply for Bitcoin mining.

During Monday's live broadcast on X, Trump also mentioned his own transformation, claiming he was initially "not very interested" in cryptocurrencies but became "greatly enlightened" when his children sold NFT series using cryptocurrency payments. He concluded his speech by saying, "Cryptocurrency is one of the things we must do, whether we like it or not."

Monday evening, following his father's vocal support, Donald Trump Jr. stated that the banking industry "has become politicized," and DeFi "eliminates political factors."

DeFi is seen as a branch in the field of cryptocurrencies. While traditional financial system architectures are centralized, DeFi, as the name suggests, offers a decentralized alternative. It utilizes public blockchain networks for transactions, replacing centralized service providers such as custodian institutions, central clearinghouses, or escrow agents with so-called smart contracts. Smart contracts are instructions in the form of computer code. This code is stored on a public blockchain and executed as part of the system's consensus rules. Supporters of DeFi argue that such projects will democratize finance.

Comments have suggested that Trump seems to be leveraging the attention gained from his presidential campaign to drive new business ventures, with World Liberty Financial potentially raising constitutional questions about him. Under the US Constitution, the President may not receive compensation from foreign governments without congressional approval, including money or valuable items. If the profits from this project flow into Trump's hands from sources prohibited by the Constitution, it could raise constitutional issues.

This article is from Wall Street News. Please download the app for more information.