For weeks, Donald Trump and his sons have hinted at a new cryptocurrency project. They’ve been quiet about the details in public, but behind the scenes, things are moving fast. The former U.S. president’s team has been working on a new project called World Liberty Financial. This project is connected to blockchain technology and decentralized finance, also known as DeFi.
The Secret Plans for World Liberty Financial
The World Liberty Financial project is designed to be a borrowing and lending service that will use blockchain technology. In private discussions, Trump’s team has been promoting a document called a white paper, which lays out the project’s goals. One interesting part of the project is that some of the people involved have previously worked on a different blockchain app called Dough Finance.
Dough Finance was recently hacked, losing $2 million. Some of the developers from that project are now part of the World Liberty Financial team. According to reports, some of the code for World Liberty Financial may have come from Dough Finance, although it’s unclear if the new project has fixed any of the old problems.
The Role of Trump and His Sons in the Project
Donald Trump is playing a big role in World Liberty Financial. He has taken the title of “Chief Crypto Advocate” for the project. His sons, Eric Trump and Donald Trump Jr., are also deeply involved. They’re known as the “Web3 Ambassadors” for the project. Even Trump’s youngest son, Barron, who is only 18, is part of the team. He’s listed as the “DeFi visionary” of the project.
The Trump family hasn’t said much about the project in public. They’ve hinted at it on social media, but full details have been scarce. However, their involvement is clear, and they seem to be betting big on the potential of cryptocurrency and blockchain technology.
The New WLFI Cryptocurrency
One of the main parts of World Liberty Financial is the creation of a new cryptocurrency called WLFI. This cryptocurrency will be a governance token, which means that it will allow people who own it to help make decisions about the project. The idea behind WLFI is that users will be able to suggest and vote on changes, such as adding new DeFi lending markets or connecting with other blockchains.
However, there’s one thing that makes WLFI different from other cryptocurrencies. It will be a non-transferable token, which means it can’t be easily traded or sold by investors. This could make it harder for people to speculate and profit off the cryptocurrency. The white paper says that World Liberty Financial will make blockchain technology more accessible, but this unique feature of WLFI might raise some questions.
The Code Controversy: Ties to Dough Finance
One of the most controversial aspects of World Liberty Financial is its connection to Dough Finance. Dough Finance is a blockchain project that was recently hacked, leading to the loss of $2 million. Some of the same people who built Dough Finance are now working on World Liberty Financial.
The white paper for World Liberty Financial lists Zachary Folkman as the head of operations and Chase Herro as the data and strategies lead. Both of these individuals worked on Dough Finance, and Octavian Lojnita, the smart contracts lead for the new project, also has ties to Dough Finance.
There’s evidence that World Liberty Financial has used some of the code from Dough Finance. A review of the now-deleted codebase on GitHub shows that the two projects share similarities in their user interfaces and code. It’s unclear if the new project still contains any vulnerabilities from the Dough Finance hack, but this connection raises concerns about the security of World Liberty Financial.
World Liberty Financial’s DeFi Features
World Liberty Financial aims to be a major player in decentralized finance. It plans to offer a credit account system built on top of the Aave platform and the Ethereum blockchain. This system will allow users to borrow and lend funds in a decentralized way, meaning that there won’t be a central authority controlling the process.
DeFi lending markets have become popular in the world of blockchain technology, and World Liberty Financial wants to tap into this growing trend. Users will be able to manage their WLFI tokens through a smart account or a brokerage interface, making it easier to participate in the platform.
Similar Projects and Risks in the Crypto World
While World Liberty Financial hopes to become a leader in the crypto space, it’s important to remember that other projects with similar goals have faced problems. For example, Voyager Digital, which offered crypto brokerage services, went bankrupt in 2022, leaving its users with big financial losses.
Traditional financial companies have started moving into the crypto world as well, but they’ve stayed away from DeFi. The world of decentralized finance is still new and full of risks. World Liberty Financial is trying to make DeFi more accessible to the public, but it’s still unclear if this project will succeed or face the same challenges as others in the crypto world.
The Team Behind World Liberty Financial
While Donald Trump is the face of World Liberty Financial, the project’s leadership team includes several other key figures. Steve Witkoff, a well-known property developer and long-time Trump friend, is listed as part of the project. His son, Zach Witkoff, is also involved.
The project’s legal counsel comes from Alex Golubitsky and Gabriel Shapiro, who run a company called MetaleX Pro. This firm provides advice on crypto governance, and they’re receiving a portion of the upcoming WLFI token.
However, some of the project’s leaders have controversial backgrounds. Zachary Folkman and Chase Herro have a history of working on projects related to e-commerce and crypto, including Subify, a platform they created that competes with Patreon and OnlyFans. Folkman, who once operated a platform called Date Hotter Girls, has taught seminars on dating techniques, while Herro has discussed his time in prison for drug-related charges on podcasts.
Their involvement in the project adds another layer of controversy, as their previous projects and personal histories have raised questions about their qualifications to lead a high-profile crypto project.
Trump’s Changing Stance on Cryptocurrency
Donald Trump’s involvement in World Liberty Financial marks a significant shift in his views on cryptocurrency. When he was president, Trump was known for criticizing digital assets, even going as far as calling Bitcoin “based on thin air.” However, with his new project, Trump seems to have changed his tune.
Now, Trump is making promises to turn the U.S. into the “crypto capital of the planet.” His support for World Liberty Financial and other blockchain projects is part of a larger plan to appeal to the growing cryptocurrency community.
Trump has also launched several waves of Trump-themed NFTs (non-fungible tokens) in the past, some of which offered rewards like dinners with the former president. This new focus on cryptocurrency and NFTs is part of his strategy to stay relevant in the digital world and reach a younger audience of tech-savvy voters.
Crypto and Politics: Courting the Crypto Vote
Trump’s entry into the crypto world comes at a time when the cryptocurrency industry is becoming more involved in politics. In the 2024 election cycle, crypto companies have poured over $119 million into political campaigns, making them one of the biggest contributors. Companies like Coinbase and Ripple are leading the way, with Coinbase taking the number one spot for corporate spending.
Republicans like Trump have been positioning themselves as pro-crypto, promising to support the industry by reducing regulations and replacing government officials who are hostile to digital assets. Trump’s team has promised that entrepreneurs will be able to launch new crypto products without fear of lawsuits from agencies like the Securities and Exchange Commission (SEC).
On the other hand, Democrats have been divided on the issue. Some, like Senator Chuck Schumer, have called for new laws to clarify the rules around crypto, while others remain skeptical of digital assets. Vice President Kamala Harris, the Democratic nominee, has not publicly shared her views on cryptocurrency yet.
World Liberty Financial is a big gamble for Trump and his family, but it’s clear that they see a future in cryptocurrency and blockchain technology. Whether or not the project will succeed remains to be seen, but it’s certainly making waves in both the crypto world and the political arena.
As World Liberty Financial develops, investors and the public will be watching closely to see how this new crypto project unfolds and if it can live up to its promises of decentralization, accessibility, and innovation.
