Trump: America will become crypto capital through World Liberty Financial

Former U.S. President Donald Trump revealed his initiative to transform America into a “crypto capital” through his new venture, World Liberty Financial.

“I promised to Make America Great Again, this time with crypto. [World Liberty Financial] aims to help establish America as the crypto capital of the world!” Trump shared on X, inviting interested individuals to join a whitelist.

On September 16, Trump launched World Liberty Financial with the aim of challenging traditional finance by providing decentralized finance as an alternative.

The initiative focuses on offering borrowing and lending services that are designed to be more user-friendly and accessible than current DeFi platforms. Most of the WLFI tokens will reportedly be sold to accredited U.S. investors.

World LibertyFi’s skepticism

The launch generated considerable excitement, with some analysts forecasting a surge in the token’s value. However, the project is facing skepticism, as experts highlight several potential red flags.

One concern is that Chase Herro, who heads World LibertyFi, was previously involved in a failed crypto venture, Dough Financial, which experienced a $2 million exploit.

Another significant issue is that 70% of World LibertyFi’s tokens will be allocated to insiders, including Trump and his team, leaving just 30% available for public sale.

This substantial insider ownership could lead to price instability if those insiders choose to liquidate their holdings. Furthermore, the SEC may examine the project closely, given that tokens are often classified as securities.