🌎 Trump Launches World Liberty Financial Crypto Project Before Elections

Donald Trump and his sons are preparing to launch a new crypto project aimed at revolutionizing the financial sector by bypassing traditional banking systems. The project, named World Liberty Financial, is set to go live on Monday, September 16. This development aligns with predictions made by Polymarket participants that Trump would introduce a cryptocurrency before the November elections.

In a recent post on social media, Trump announced his commitment to embracing the future with cryptocurrency and mentioned that he would speak at a Twitter Spaces event at 8 p.m. EST to mark the launch of World LibertyFi. Some crypto analysts are optimistic about the project, with at least one predicting a substantial increase in the token’s value over the next two weeks. However, a recent report has raised several concerns about the project.

Key Figures and Potential Risks

The project is led by Chase Herro, an entrepreneur with a history in the crypto space. Herro’s previous venture, Dough Financial, was a lending platform that faced significant challenges, including an exploit that resulted in the loss of over $2 million in assets. The platform now holds a meager total value locked and appears to be inactive.

Another notable concern is that 70% of all World Liberty Financial tokens will be reserved for insiders, including Trump. While insider ownership is common in the crypto industry, such a large percentage poses a considerable risk. The token’s price could be highly volatile if insiders decide to sell their stakes.

Additionally, the project may face regulatory scrutiny from the Securities and Exchange Commission (SEC), which views these tokens as securities. The SEC argues that token buyers should have more information about the project and its leadership.

Competition and Market Conditions

The lending industry within the crypto space has become highly competitive, with established players like AAVE, JustLend, Morpho, LayerBank, and Fluid striving to gain market share. Many newly launched crypto projects have struggled, with some tokens dropping over 60% from their all-time highs.

Trump’s Business Ventures and Campaign

Critics question the timing of Trump’s new venture, given that there are only 50 days left until Election Day. This crypto initiative is the latest in a series of products Trump has promoted, including signed sneakers, Trump-branded bibles, and a series of non-fungible tokens (NFTs). His ventures have collectively generated millions of dollars.

Data indicates that Trump’s crypto portfolio is valued at over $5.7 million. However, it remains unclear whether the promotion of this event is intended to fund his campaign or address his mounting legal debts. Notably, in August, Trump’s campaign raised $130 million, compared to Vice President Kamala Harris’s $361 million.

Earlier this year, Trump received a $464 million fine in a civil case. His company, Trump Media & Technology, has seen its stock plummet by almost 80% from its peak this year. Forbes now estimates Trump’s net worth to be $3.9 billion, down from over $7 billion earlier this year.