Donald Trump Launches Crypto Project，World Liberty Financial

Quick Take

• 62.66% of the World Liberty Financial token will be sold to the public, with 17.33% reserved for user rewards and 20% going to the team.
• WLFI token will be non-transferable and offered only to accredited investors under an SEC Regulation D exemption as the team cited regulatory uncertainty in the U.S.
• Donald Trump revealed that he earned over $7.15 million from crypto on Sep17th. 2024 X Space
• MAGA Trump Token isn’t affected by today’s Trump livestreaming. It has been decreasing by 5.04% according to WEEX crypto exchange data

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As the U.S. presidential election draws near, one of the candidates, Trump, has been in the spotlight recently. In particular, the cryptocurrency project World Liberty Financial, spearheaded by Trump’s son, has attracted the attention of WEB3 and the global financial sector.  On September 17 Twitter space, ex-President Donald Trump along with his sons announced their plans to introduce the World Liberty Financial cryptocurrency initiative, featuring the governance token WLFI. Despite the broadcast lasting over two hours and garnering an audience of more than 100,000. However, no specific launch date for the token was disclosed by the project team.

What is the Trump new Crypto Project？

World Liberty Financial (WLFI) is built on the decentralized finance (DeFi) platform Aave and the Ethereum blockchain, centered around a “credit account system.” It utilizes a non-transferable governance token WLFI and a credit account system. WLFI team also explicitly stated that they will collaborate with the well-known lending project Aave to create a new DeFi lending platform on Ethereum, and will introduce a credit account system and a streamlined interface to facilitate convenient access to the project for wallets or brokerage businesses. World Liberty Financial is not a fork of Aave, but rather a collaboration to promote innovation and development in the DeFi sector. The project does not intend to replicate existing DeFi protocols, but rather hopes to work with them to jointly create a stronger and more secure decentralized financial platform.

The core objective of the project is to ensure that the US dollar continues to hold a dominant position in the future global finance by promoting the use of dollar-pegged stablecoins. The project team believes that the global dominance of the US dollar faces challenges from other countries, and the promotion of stablecoins will help maintain the United States’ leadership in the international financial sector. In short, The project will offer cryptocurrency lending services on the Ethereum blockchain network, which is not much different from a large number of existing applications in DeFi.

Is Trump A Crypto Supporter?

Donald Trump was not a fan of Bitcoin before. He posted his concern about cryptocurrencies on X. That was in 2019, things have changed, and crypto has grown and is ready to bring on the new future. 2024 began with significant momentum for cryptocurrencies like Bitcoin and Ethereum and XRP, elicited enthusiasm among crypto enthusiasts. According to WEEX crypto exchange data, Bitcoin experienced a remarkable surge, breaking its previous all-time high of $69,170 set on March 8, 2024, and climbing to $70,083. Later on, the price of BTC surpassed its prior peak once more, hitting $73,750 March 14, 2024. WEEX’s reputation for high liquidity and ease of use would make it an attractive option for traders looking to buy or sell crypto. Find out more at: https://www.weex.com/register

On today’s Twitter livestreaming, Trump attributed his change of attitude toward crypto to the strong interest in his own brand NFT project. Trump stated that he noticed most of the NFT trading cards he minted on Polygon were purchased with cryptocurrencies, and his supporters were excited about his entry into this field. Trump expressed surprise at the number of people willing to spend cryptocurrencies on his NFT series.

How Much Has Donald Trump Made from NFT Sales and Crypto?

Trump revealed that he earned over $7.15 million from three NFT collections, including the “Mugshot” project targeting criminal prosecution and two separate Donald Trump trading card series collections. According to Citizens for Ethics, Donald Trump holds between $1 million and $5 million in Ethereum-based cryptocurrencies.

WLFI Tokenomics including Distribution and Sale

Some 62.66% of the token will be sold to the public with a portion of net proceeds from that sale going to the project’s multi-signature wallet treasury reserve, according to an excerpt of World Liberty’s white paper. 17.33% will be reserved for incentivizing the expansion of participation in the governance of World Liberty, along with other community growth initiatives. The remaining 20% of the token supply will go to the project’s team, advisors, and future hires, with undisclosed portions of WLFI earmarked for the WLF Foundation, affiliates of the Trump Organization

To avoid scrutiny from the U.S. SEC for violating securities laws, all WLFI tokens will not be transferable until the tokens are unlocked in a manner that does not violate relevant laws through the protocol’s governance process. That is to say, it is highly likely that WLFI tokens will not be able to be listed on exchanges for public trading in the future, and can only be used as governance tokens within the platform, with dividend rights to be determined. To some extent, WLFI may be similar to unlisted equity, which can only be traded over-the-counter and requires notifying and informing the project managers to change ownership.

World Liberty team said they only want token buyers who are seeking to be participants in governance, not those after an economic return. As of now, the token will be sold only to accredited investors under what is known as a Regulation D exemption from the Securities and Exchange Commission (SEC). Regulation D exemptions allow companies to raise capital without registering securities with the SEC, primarily by offering securities to accredited investors or in small, private offerings

Core Team Members of World Liberty Financial

The Trump family will take on multiple roles in the project, with Trump being referred to as the “Chief Cryptocurrency Advocate,” Trump’s two eldest sons Eric Rrump serving as “Web3 Ambassadors,” and Trump’s youngest son Donald Trump Jr. as the “DeFi Visionary.” Several of Trump’s friends also hold key positions in the project. For example, well-known real estate developer Steve Witkoff is the Head of Institutional Investment, Steve Witkoff’s son Zach Witkoff is the Head of Intelligence, co-founder of the crypto governance consulting firm MetaleX Pro Alex Golubitsky is the legal advisor, co-founder of MetaleX Pro Gabriel Shapiro is the crypto governance consultant, founder of the dating platform Zak Folkman is the Operations Manager, and founder of the venture capital firm Pacer Capital Chase Herro is the Digital and Strategy Officer. Together, they form the leadership team of World Liberty Financial.

To be more crypto native, WLFI team recently announced that Ogle, along with Ethereum Layer 2 network Scroll co-founder Sandy Peng, and Antivirus and PixelPlex founder Alexei Dulub have joined as advisors to the project. It is reported that Web3 Antivirus is a Web3 open-source extension project designed to prevent crypto scams and wallet losses, and PixelPlex is a provider of blockchain technology solutions and software development. Ogle is a cybersecurity expert who has helped recover over $400 million in cryptocurrencies from significant hacking attacks involving platforms such as Euler, Curve/Alchemix, and Kyberswap. In addition, Ogle is the co-founder of Glue, a dynamic blockchain ecosystem.

Will Trump Token effect by World Liberty Financial?

The MAGA Trump Token, which is a memecoin associated with former President Donald Trump, has not been influenced by his live-streaming event that took place today. Despite the livestream, the token’s value has experienced a decline. According to the latest data from the WEEX cryptocurrency exchange, the decrease in the token’s value has been recorded at 5.04%. This suggests that the livestream did not have the anticipated positive impact on the token’s market performance.

However the price of Super Trump Coin (STRUMP) has increased today. According to WEEX data, the price of STRUMP has risen today, and the current price is 0.004915, with a gain of 4.8%.

Risk Disclosures of the World Liberty Financial

Contract Security Concern

WLFI is said to be inspired by the DeFi protocol Dough Finance, a lending project that was recently hacked, with many team members coming from Dough Finance. Dough’s founder, Zak Folkman, has officially registered as the owner of World Liberty Financial LLC. Moreover, it is possible that World Liberty Financial directly copied Dough Finance’s code in its early stages, making it difficult to say whether the current code has any bugs, which raises public concerns about the project’s security. (Note: Dough Finance was attacked by a flash loan transaction on July 12nd, 2024, with the hacker profiting about $2.1 million, of which about 76 ETH (about $260,000) has been returned by a white hat hacker. The attacker exploited a vulnerability in the Dough ConnectorDeleverageParaswap contract that allowed arbitrary calls, enabling the transfer of WETH from the vulnerable contract.)

Donald Trump’s wife, Lara Trump, and his younger daughter, Tiffany Trump, had their X (formerly Twitter) accounts hacked. The hackers used these accounts to promote a cryptocurrency scam similar in name to the project. Although the project team quickly issued a warning, reminding users not to click on any suspicious links, many people believe that if the Trump family can hardly control their own Twitter accounts, how can they ensure the security of the projects they launch?

World Liberty Financial Team is Not Crypto Native

The structure of the team raised doubts about the professionalism of the project, especially considering that it was developed from a stolen project and the team members were chosen based on personal relationships, with some members having no connection to the cryptocurrency industry at all.

Conclusion

After today’s X space event, World Liberty Financial has finally unveiled its mysterious veil. All these issues have led the cryptocurrency industry to question the true intentions behind the Trump family’s project launch. After all, the available information seems to indicate that World Liberty Financial does not have a solid operational foundation, and Trump’s pro-cryptocurrency rhetoric in his speeches alone seems insufficient. Alternatively, it could be that they are counting on Trump’s potential re-election success to use his political influence to enhance the project’s recognition and provide official endorsement for their project.

Keeping an eye on WEEX and WEEX Help will not only help you know more details about World Liberty Financial and Trump family actions in Web3 but also allow you to better understand the overall landscape of the cryptocurrency market. Stay tuned for more updates!

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