Inside Trump-Backed World Liberty Financial
Ben Simpson
Navigating the world of crypto with confidence & expertise | Founder & CEO of Collective Shift | Helped 1000+ investors maximise their returns & create a winning portfolio strategy
Hey LinkedIn,
If you had a former U.S. president backing a DeFi cryptocurrency on your 2024 bingo card, well done. We certainly didn't.
Here's what we know about the Trump-backed World Liberty Financial and its token. ??
What Is World Liberty Financial?
It’s being billed as a platform to simplify DeFi and participate in the onchain economy, but that’s about all we really know.
The project is spearheaded by Zachary Folkman and Chase Herro, who previously co-founded another DeFi protocol, Dough Finance. (According to reports, World Liberty Financial is essentially a clone of Dough Finance.)
And yes, it will have a token, potentially making it one of the most talked-about token sales in recent history.
WLFI Token Details
In an X Space this week, the Trumps and the World Liberty Financial team shared some information on the platform's native token, WLFI.
Distribution
Contrary to earlier reports of a 70% insider allocation, the distribution of WLFI will be as follows:
Utility
WLFI is exclusively a governance token, with voting power capped at 5%. It will also be non-transferable, only becoming transferable with a governance vote.?
Keep in mind this could rapidly change if Trump wins in November and rules around token sales are relaxed.
Who can participate?
The future token sale will only available to accredited investors.
Watch For Scams
As always, be vigilant for scams, such as the below one on Google's front page. Only look to the official channel, and even then be careful of any immediate calls to action.
The token or platform is not live yet, and no date is set for the WLFI public sale.?
Concerning Signs
It’s hard not to be slightly sceptical.
Lack of details: Trump failed to even mention the project during his 30-minute appearance on the X Space. Of what little information was revealed, it was basically all to do with the WLFI token.
Shady history: The core team have a controversial past, with their previous project, Dough Finance, exploited for $2M in July. It doesn’t help when one of them calls himself “the dirtbag of the internet.”
High risk: The platform will likely face extra scrutiny and attempts to hack or exploit it. It feels like a high-risk play for Trump that could do more harm than good.
Not All Doom & Gloom
There are at least some positives.
Ethereum is consistently chosen as the first place to deploy, and the platform will heavily integrate Aave.
The biggest win is for users, as they aim to create an easy user experience that removes the complexities of using crypto. It is still just too hard for the average person.
Bullish or Bearish on WLFI?
We're reserving final judgment until more information becomes available, but we're cautious due to the vague details about what World Liberty Financial actually does and its team's questionable past.
The future success of WLFI may hinge on Trump's victory in November, which could increase its utility and expand its potential user base.
Having already attracted this many warning signs, it'd be nice to see more details come out sooner rather than later.
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Crypto strategist | Swing trader | Crypto Educator focused in risk, security & Anti-scam
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