On Monday night, Donald Trump officially entered the cryptocurrency space by announcing World Liberty Financial, a project centered around a new WLFI token. The announcement came during a live X Spaces event, which revealed key aspects of the project, including its governance structure and the involvement of Trump’s family members.
Live Crypto Discussion with Trump. Sourec: WLFIonX Trump’s Shift to Cryptocurrency and Launch of World Liberty Financial
Donald Trump first ventured into the crypto world in 2022, with the launch of his NFT trading card collection, which sold out in a day, bringing in $5 million in sales. Despite earlier criticizing Bitcoin, Trump has gradually embraced crypto, even headlining a Bitcoin conference in Nashville in July 2024.
Trump’s Anti-Crypto Tweet. Source: @realDonaldTrump
Hints of World Liberty Financial surfaced in August, with Trump and his sons promoting the initiative on Truth Social and a new Telegram channel. The project aims to provide financial solutions to underserved communities. However, the plan to restrict access to the WLFI token to accredited investors—those with a net worth of $1 million or more—seems to conflict with this mission.
Who Can Buy the WLFI Token and When Will It Launch?
During Monday’s X Spaces, Trump’s team outlined the core elements of World Liberty Financial. The WLFI token will be a governance token, giving holders voting rights in the project. However, the token will be nontransferable and will not earn any yield, which may limit its appeal.
Only accredited investors can buy the WLFI token. This move may help the project bypass some SEC registration rules. By classifying the token as an unregistered security, the project avoids certain legal requirements. The token allocation will see 63% sold to the public, while 20% will go to the development team. Specific details about the launch date were not provided during the event.
Concerns Over Governance and Potential SEC Response
The governance structure of World Liberty Financial has raised concerns within the crypto community. A leaked white paper showed similarities with Dough Finance, a DeFi project that suffered a hack earlier this year. This has led to worries about the project’s security.
Additionally, with Trump running for president, some critics are concerned that the WLFI token may create opportunities for conflict of interest. They worry that supporters could use the token to gain influence, or that Trump could pressure regulators to favor his business interests. The SEC has recently been focusing on enforcement actions against crypto companies, and how it will respond to World Liberty Financial remains to be seen.
As the 2024 election approaches, Donald Trump’s World Liberty Financial adds a new layer to politics and cryptocurrency. The project could affect both industries. The regulatory response will also shape the future of crypto.
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