Original article by: Sarah Wynn

原文标题：Donald Trump-backed World Liberty Financial Project draws skepticism from crypto advocates and critics alike

Original source: The Block

Compiled by: Koala, Mars Finance

In a more than two-hour Spaces livestream hosted by crypto celebrity Farokh on social media platform X, backers of the project said they plan to launch a non-transferable governance token called WLFI.

“Donald Trump’s sudden enthusiasm for cryptocurrency is both palpable and opportunistic,” crypto-friendly Rep. Willie Nickel said in a statement to The Block.

This week, cryptocurrency critics and supporters alike agreed that the launch of Republican presidential candidate Donald Trump’s much-anticipated cryptocurrency project, World Liberty Financial, could do more harm than good.

“Donald Trump’s sudden enthusiasm for cryptocurrency is both palpable and opportunistic,” said Democratic Rep. Wiley Nickel of North Carolina, a crypto-friendly Democrat who has supported multiple cryptocurrency bills over the past year, in an emailed statement to The Block. “He did nothing for cryptocurrency while in the White House and is now launching World Liberty Financial to profit from a movement he never supported.”

In a more than two-hour livestream on social media platform X, hosted by crypto celebrity Farokh, backers of the project said they plan to launch a non-transferable governance token called WLFI. Previously, the project has said it wants to drive stablecoin adoption and that DeFi will be a part of it.

During the livestream, Trump said cryptocurrency is “big, but it’s in its infancy compared to what the future holds.” Later, Donald Trump Jr., Eric Trump, father-and-son real estate investors Steve and Zach Witkoff, and Dough Finance co-founders Zachary Folkman and Chase Herro all appeared on the livestream to promote the investment. The project also faced challenges after both Lara and Tiffany Trump’s X accounts were hacked and posted about tokens allegedly associated with World Liberty Financial.

“Everything this man touches is a scam, and his new policy positions are no exception,” Nickel said. “For those of us who advance crypto innovation through true bipartisan action, Trump’s involvement can only undermine serious efforts to build a secure and regulated future for digital assets.”

A crypto industry insider who spoke on the condition of anonymity because of his ties to the Trump campaign told The Block that X-Space is “light on details.” They added that crypto and political circles don’t know much about the project or the people involved in it. Republican lawmakers are also in the dark about the details of Trump’s project, they said.

“There’s a sense in some parts of Washington that there’s an almost cult-like following of Trump and some on Capitol Hill,” they said. “We haven’t seen anyone really jump out to defend this project, or to promote it, or anything else, as far as I can tell.”

The source said the world of free finance has "many more pitfalls than benefits".

“There are a lot of questions about who was involved in this project,” they said. “There are enough stories about people involved in this project to raise alarm bells in Washington.”

There are still many shortcomings

Dr. Tonya Evans, a professor at Penn State Dickinson School of Law who previously spoke at the Crypto4Harris event in August, believes the release is lacking in details.

“The Trump family’s launch of WLFI was undoubtedly a high-profile event, but it left much to be desired in terms of transparency (a hallmark of best practices in the digital asset community) and details,” Evans said in an emailed statement. “While they succeeded in drawing attention to the project and generating circus-like curiosity, the lack of clear details about WLFI’s governance token, roadmap, and actual functionality has raised far more questions than answers.”

In an X-Space interview on Monday, the project’s creators said that given regulatory uncertainty, WLFI plans to limit participation to accredited investors. Evans said the restriction “seriously undermines the narrative of democratizing finance.”

“Real DeFi is about broad participation, not limiting access to the wealthiest,” Evans said. “If WLFI continues on this path, it could be seen as another example of the political elite using financial products to benefit a privileged few while shutting out the communities that DeFi could empower.”

One benefit of the project, Evans said, is that it puts “DeFi in the spotlight,” which can bring discussions about innovation and financial inclusion into the mainstream.

“Mostly, however, supporters will increase donations to the Trump campaign and likely gain support from more single-issue Bitcoin and cryptocurrency voters,” Evans said.

Patrick Kirby, policy adviser at the Crypto Innovation Council, said the launch of World Free Finance shows the “growing influence of cryptocurrencies.”

“I think it’s important for policymakers to experiment with technology, especially decentralized exchange protocols like we’re seeing here, to really better understand the benefits of DeFi and build that understanding through practice and experience,” Kirby told The Block.

Criticism from Congress

Rep. Sean Casten, D-Ill., a cryptocurrency critic, criticized World Liberty Financial’s distribution structure during a House Financial Services Subcommittee on Digital Assets hearing on Wednesday.

The founders announced on Monday that 63% of WLFI tokens will be sold to the public, 17% will be used for user rewards, and 20% will be used for team compensation.

Kasten seemed to suggest that if a Republican-led crypto markets bill passes, which would make entities unregulated if their ownership is less than 20%, it would ultimately benefit World Liberty Financial.

Kasten also took a swipe at Trump himself.

“I understand why someone with a history of fraud, a history of money laundering would find this attractive,” Kasten said.