Cash News
Former U.S. President Donald Trump announced his plan to make America a “crypto capital” through his new project, World Liberty Financial.
“I promised to Make America Great Again, this time with crypto. [World Liberty Financial] is planning to help make America the crypto capital of the world!” Trump posted on X. He invited eligible people to join a whitelist.
On Sept. 16, Trump launched World Liberty Financial with the goal of disrupting traditional finance and offering decentralized finance as an alternative.
The project offers borrowing and lending services and aims to be more user-friendly and accessible than existing DeFi platforms. The project will reportedly sell most of its WLFI tokens to accredited U.S. investors.
World LibertyFi’s skepticism
The launch sparked excitement, with some analysts predicting a boom in its token value. However, the project is drawing skepticism, with experts warning of potential red flags.
One concern is that Chase Herro, who leads World LibertyFi, was previously involved in a failed crypto project, Dough Financial, which suffered a $2 million exploit.
Another major issue is that 70% of World LibertyFi’s tokens will be reserved for insiders, including Trump and his team, leaving only 30% available for public sale.
This high level of insider ownership could create price instability if insiders decide to sell their stakes. Additionally, the SEC could scrutinize the project, as tokens are often classified as securities.