Just for Traffic? Trump's project "World Liberty Financial" questioned by the community

Supporters and critics alike have raised concerns about the recent launch of the "World Liberty Financial" (WLFI) project. Endorsed by former President Donald Trump, the project's association with the Trump family has drawn attention from both the cryptocurrency and political communities. In a Twitter conversation, the Trump family further fueled suspicions.

The Trump Organization's cryptocurrency project renamed "World Liberty Financial," Trump voiced support.

World Liberty Financial Launches Amid Controversy

The launch of World Liberty Financial aims to leverage the influence of decentralized finance (DeFi) and stablecoins, but critics argue that the project seems more focused on profit rather than genuine promotion of blockchain technology. North Carolina Democratic legislator Wiley Nickel, who has supported various cryptocurrency bills, expressed concerns.

"Trump's sudden interest in cryptocurrency is as transparent as his opportunism," Nickel told the media stating, "He showed no support for cryptocurrency during his administration, and now with the launch of World Liberty Financial, it's clearly a money-making venture."

No New Coins? Only Non-Transferable Governance Tokens

The release of World Liberty Financial was announced during a two-hour Spaces event on Twitter, hosted by prominent cryptocurrency figure Farokh. During the event, it was revealed that WLFI would introduce non-transferable governance tokens, a deviation from its previous commitment to stablecoins and DeFi adoption.

Trump himself made an appearance at the event, stating that cryptocurrencies are "very important, but still in the early stages." The event also saw supporters such as Donald Trump Jr., Eric Trump, and real estate investors Steve and Zach Witkoff in attendance. However, despite this high-profile support, the event faced criticism for lacking substantive content.

A cryptocurrency industry insider with ties to the Trump campaign, who requested anonymity, stated that the event "lacked specific details," leaving both the cryptocurrency and political communities uncertain about the project's direction and the credibility of its participants.

Criticism Surrounding Trump's Involvement

Trump's sudden pivot to cryptocurrency has raised eyebrows for many. Democratic legislator Wiley Nickel did not mince words in his criticism, stating, "Everything this person touches is a scam, and his new policy positions are no exception." Nickel pointed out that Trump's intervention could potentially undermine serious efforts to establish a secure and regulated future for digital assets.

Prior to the project's launch, the Trump family faced issues as well. Lara Trump and Tiffany Trump's Twitter accounts were briefly hacked, posting tweets promoting tokens allegedly associated with World Liberty Financial.

Tonya Evans, a law professor at Dickinson Law School at Penn State University, noted, "The launch of WLFI has indeed garnered significant attention, but there are still many shortcomings in terms of transparency and specific details."

Evans highlighted that while the Trump family successfully drew attention to WLFI, crucial details such as a roadmap for governance tokens and their actual functionality were lacking. She also expressed concerns about WLFI's decision to restrict participation to accredited investors, which she believed contradicts the core principles of decentralized finance.

"True DeFi should be about widespread participation, not limiting it to the wealthiest individuals," Evans cautioned, warning that such actions could potentially turn WLFI into another political tool benefiting a privileged few, overlooking the original intention of DeFi to empower a broader community.

Democratic legislator Sean Casten from Illinois criticized WLFI's token distribution structure, expressing dissatisfaction. The project announced that 63% of WLFI tokens would be publicly sold, 17% allocated for user rewards, and 20% reserved for the team.

Casten expressed concerns that entities owning less than 20% ownership might evade regulations if Republican-led cryptocurrency market bills were passed. "I understand why those with a history of fraud and money laundering would be keen on this," he added.

Potential Positives of WLFI

Despite the numerous concerns, Evans acknowledged that the launch of World Liberty Financial could bring some positive impacts. She mentioned that the project's visibility could help drive discussions on DeFi and financial inclusion into the mainstream.

Policy advisor Patrick Kirby from the Crypto Innovation Council held a more optimistic view. He emphasized that WLFI's emergence signals the increasing influence of cryptocurrencies on politics and policy-making. "I believe it's crucial to allow policymakers to experiment with technology, especially decentralized trading protocols like this, to better understand the advantages of DeFi," he said.

Whether WLFI will become a significant contributor to the cryptocurrency ecosystem or be viewed as a mere political spectacle remains to be seen.