With backing from the Trump family, World Liberty Financial aims to challenge financial intermediaries and traditional banking barriers. /p>
Donald Trump and his team have released information on the pending launch of World Liberty Financial, a new DeFi project built on the Aave tech stack.
Following a 2-hour X (formerly Twitter) Space last night, the team confirmed the initiative aims to transform the traditional financial system by leveraging blockchain technology. It focuses on tokenizing real estate assets to make high-value property investments accessible to a broader audience, bypassing conventional banking barriers.
Key figures involved include Donald Trump Jr., Eric Trump, Steve Wickoff, Zach Folkman, and Chase Hero. Folkman and Chase previously founded an alternative to OnlyFans called Subify, Dough Finance, and Date Hotter Girls LLC, offering tips on dating for men. Dough Finance was hacked for around $2 million in July, according to Cerik.
Reports suggest that World Liberty Financial may not be owned by the Trump family. Folkman and Chase are the main company executives, according to an allegedly leaked Whitepaper.
This new project seeks to democratize finance by offering peer-to-peer transactions through smart contracts, reducing reliance on intermediaries like banks and lenders. “DeFi is the way of the future,” Don Jr. stated, emphasizing the need to create a more egalitarian financial system.
World Liberty Financial intends to tokenize real-world assets onto the blockchain. This approach aims to provide global investors access to blue-chip real estate markets traditionally reserved for institutional players. Utilizing blockchain’s transparency and immutability, the project aspires to eliminate inefficiencies and abuses prevalent in the current financial landscape.
Donald Trump’s involvement confirms his shift in stance on crypto. “I do believe in it,” he said, highlighting his recognition of crypto’s potential after observing his children’s engagement with digital assets. The former president also emphasized the United States’s need to lead in emerging technologies to remain competitive globally.
World Liberty Financial Token
Concerns have been raised regarding the project’s structure and regulatory compliance. As Popular Information reported, 70% of World Liberty Financial’s governance tokens (WLFI) may be allocated to insiders like Trump and his sons, a figure substantially higher than typical allocations in similar ventures. This has led to speculation about the project’s intentions and potential conflicts of interest.
Critics also point out the possibility of the governance token being classified as an illegal security under current Securities and Exchange Commission (SEC) guidelines. “The SEC’s been unbelievably hostile,” Trump remarked, suggesting that his involvement might influence the agency’s approach to crypto regulation.
However, Folkman has reportedly stated that the WLFI token will follow a different schedule, according to CNBC. According to Folkman, 20% of the project’s tokens will be allocated to the founding team, which includes the Trumps; 17% will be reserved for user rewards, and the remaining 63% will be available for public purchase. He added that there will be no pre-sales or early buy-ins.
He also stated that the token will be offered under the Securities and Exchange Commission’s Regulation D, which permits companies to raise capital without registering their securities, provided certain conditions are met.
Crypto impact from potential Trump win in November
Political implications are intertwined with the project’s launch. Per Judd Legum, Trump could leverage the presidency to advance World Liberty Financial’s interests if re-elected, raising ethical questions about the intersection of public office and private enterprise. However, Trump has already vowed to fire Gary Gensler should he win the election, suggesting a regime change is indeed in his plans.
World Liberty Financial positions itself as a response to perceived overregulation in the financial sector, aiming to foster innovation without excessive bureaucratic constraints. The project aligns itself with what Don Jr. describes as the vision of America’s founding fathers, promoting individual freedom and reduced government control in finance.
The initiative’s success hinges on navigating regulatory challenges and public skepticism. By championing DeFi and blockchain technology, World Liberty Financial seeks to reshape the financial industry, but regulators and the crypto community alike will closely watch its journey.
A plethora of scam X (formerly Twitter) accounts have appeared in recent weeks, attempting to steal users’ crypto. There are also reports of fake Telegram accounts. Fake WLFI tokens also appear on DEXs and CoinMarketCap, meaning users should stay vigilant.
Trump family’s upcoming DeFi project aims to cement US dollar dominance via stablecoin revolution.
WLFI seeks to counter the rise of alternative currencies from foreign nation-states and preserve the dollar's financial influence for the next century via stablecoins.
World Liberty Financial (WLFI) — a DeFi project tied to members of former President Donald Trump’s family — responded to a wave of speculation on Sept. 4 with a series of tweets clarifying its DeFi strategy and confirming its collaboration with Aave.
In the posts, WLFI announced the partnership aims to develop a platform that will drive the mass adoption of US-pegged stablecoins, highlighting the project’s potential impact on both crypto and the US economy.
The project has gained additional attention due to the involvement of former President Donald Trump’s family, particularly Eric Trump and Donald Trump Jr., who are reportedly playing prominent roles in its development.
US-pegged stablecoins
In the tweets, WLFI made it clear that the project is working closely with Aave, a leading DeFi protocol, rather than creating a competing fork. It stated:
“We’re not just another hostile fork of Aave.”
WLFI said it views stablecoins as a tool that can help preserve America’s financial leadership amid rising foreign competition. Its primary goal is to increase the adoption of US-pegged stablecoins and ensure the dollar maintains its position as the global settlement layer.
It said:
“The U.S. dollar has been the backbone of global finance for decades, but it’s now under attack by foreign nation-states.”
By expanding the global reach of stablecoins, WLFI seeks to counter the rise of alternative currencies from foreign nation-states and preserve the dollar’s financial influence for the next century.
It added:
“We want US-pegged stablecoins to remain the world’s settlement layer for the next 100 years.”
The tweets also detailed the security measures being implemented, with WLFI working alongside top blockchain security firms like Zokyo, PeckShield, and BlockSecTeam to review its code. WLFI emphasized user safety as a top priority and ensured that the platform was as secure as possible before launch.
Skepticism and ethical concerns
Despite the high profile of the project, there is much skepticism around the project, largely centered on its security measures, political ties, and the ambitious nature of its goals.
Despite assurances that top blockchain security firms are conducting thorough audits, concerns remain about the project’s ability to safeguard against potential cyberattacks. In the high-risk world of DeFi, vulnerabilities can have major consequences, and the project’s high profile increases the stakes.
Additionally, the involvement of Trump and his family has fueled speculation about whether the project is more politically driven than aimed at genuinely advancing decentralized finance
Some ethics watchdogs have raised concerns that such a venture could lead to a significant conflict of interest if Trump is reelected. However, others claim that it does not violate ethics laws despite the poor “optics.”
