Supporters and critics alike have expressed doubts about the recently launched World Liberty Financial (WLFI) project. The project was endorsed by former President Donald Trump and attracted attention in the cryptocurrency and political circles due to its connection to the Trump family. In a conversation on Twitter, the Trump family further attracted attention. doubt.
(Trump Group’s encryption plan is renamed “World Liberty Financial”, and Trump issued a message to support it)
World Liberty Financial's controversial debut
World Liberty Financial was launched to capitalize on the power of decentralized finance (DeFi) and stablecoins, but critics believe the plan is more about making money than truly promoting blockchain technology. Wiley Nickel, a North Carolina Democratic congressman who has sponsored several cryptocurrency bills, expressed concern.
"Trump's sudden interest in cryptocurrency is as transparent as his opportunism." Nickel told the media: "He did not support cryptocurrency at all during his term, and now he has launched World Liberty Financial, which is obviously to make money while the market is hot."
No more coins issued? Only governance tokens that cannot be sold
The launch of World Liberty Financial took place during a two-hour Spaces event on Twitter, hosted by well-known crypto personality Farokh. During the event, it was announced that WLFI would be importing non-transferable governance tokens, a departure from previous commitments to focus on stablecoins and DeFi adoption.
Trump himself also appeared at the event, saying that cryptocurrency "is important but still in its early stages." The event was also attended by supporters such as Donald Trump Jr., Eric Trump and real estate investors Steve and Zach Witkoff . Yet despite this high-profile support, the campaign has been criticized for lacking substance.
A cryptocurrency industry insider with ties to the Trump campaign, who requested anonymity, said the campaign’s “lack of specifics” has left the cryptocurrency and political circles uncertain about the direction of the project and the credibility of the participants.
Trump's involvement sparks criticism
For many, Trump’s sudden shift toward cryptocurrencies is alarming. Democratic Congressman Wiley Nickel made no secret of his criticism, saying bluntly: "Everything this man touches is a scam, and his new policy positions are no exception." Nickel also pointed out that Trump's intervention may undermine the security of digital assets. and serious efforts to regulate the future.
In addition, the Trump family also faced problems before the project was launched. Lara Trump and Tiffany Trump’s Twitter accounts were hacked and they published posts promoting a token allegedly related to World Liberty Financial.
“The release of the WLFI certainly generated a lot of attention, but it left a lot to be desired in terms of transparency and specific details,” said Tonya Evans, a law professor at Penn State Dickinson School of Law.
Evans noted that while the Trump family was successful in attracting attention to WLFI, there were no key details about the governance token’s development roadmap and its actual functionality. She also expressed concern about WLFI’s decision to limit participation to accredited investors, arguing that this goes against the core principles of decentralized finance.
“Real DeFi should be about widespread participation, not restricting the richest people.” Evans warned that this move may make WLFI seen as another political tool to benefit a few privileged people, ignoring the fact that DeFi aims to empower original intention of the wider community.
Illinois Democratic Congressman Sean Casten criticized WLFI’s token distribution structure and expressed dissatisfaction. The project announced that 63% of WLFI tokens will be sold publicly, 17% will be used as user rewards, and 20% will be reserved for the team.
Casten worries that entities with less than 20% ownership could avoid regulation if the Republican-led crypto market bill passes. "I understand why people with a history of fraud and money laundering would be interested."
WLFI also has a positive meaning
Despite the misgivings, Evans acknowledged there could be some positives from the launch of World Liberty Financial. She mentioned that the visibility of this project may help push discussions about DeFi and financial inclusion into the mainstream.
Patrick Kirby, policy advisor to the Crypto Innovation Council, takes a more optimistic view. He stressed that WLFI’s appearance was indicative of the growing influence of cryptocurrencies on politics and policymaking. “I think it’s important for policymakers to experiment with technology, especially decentralized exchange protocols like this, to better understand the advantages of DeFi.”
It remains to be seen whether WLFI can become a significant contributor to the cryptocurrency ecosystem or ultimately be viewed as a political show.
Is this article just for traffic? Trump’s project “World Liberty Financial” was questioned by the community first appeared on Chain News ABMedia.
