Donald Trump is about to launch his new cryptocurrency project called World Liberty Financial. Will it represent an opportunity or a risk for users?
Former US President and Republican candidate Donald Trump has announced the launch of his new venture, World Liberty Financial (WLFI), scheduled for next week.
The creation of this project marks a notable transition for the former US president, who has abandoned his previous skepticism towards cryptocurrencies and has adopted a stance in favor of this financial and technological innovation.
Trump revealed in a recent video, shared on social media, that His new project will be released next Monday, September 16th, during a live stream on Twitter Spaces. This project is presented as an attempt to capitalize on the growing opportunities of cryptocurrencies and the blockchain industry.
World Liberty Financial launches early next week
The launch of World Liberty Financial promises to revolutionize the way people connect and interact with blockchain technology and decentralized finance (DeFi). As CoinDesk reported last week, the initiative is billed as a lending and credit platform that seeks to use DeFi infrastructure to offer a credit account system based on the Ethereum blockchain. Its goal is to facilitate lending and borrowing in a decentralized manner.
Despite the lack of concrete details, the project has generated a great deal of media interest among users and investors. Donald Trump's family, including his son Barron, has been promoting the project on social media, without offering further technical and operational details. However, its development and upcoming launch occurs in a context where the crypto industry has seen its importance grow in the political landscape.
Donald Trump has focused part of his presidential campaign on cryptocurrencies, promoting Bitcoin as an investment asset and a potential strategic store of value for the United States, as well as cryptocurrencies as part of a promising financial future, aligning himself with this growing sector.
What is Trump's new cryptocurrency project?
World Liberty Financial aims to offer a lending and borrowing platform that resembles other DeFi applications. According to CoinDesk, this project has many similarities with Dough Finance, including four of its founders. However, it is worth noting that Dough Finance suffered a significant hack last July, resulting in the loss of about $2 million of users’ assets.
World Liberty Financial's similarity to Dough Finance and the relationship of several team members to the platform have raised concerns about the security and viability of Trump's new project.
In addition to the above, the lack of clear details surrounding the development of the project has led some analysts to question the functionality of World Liberty Financial and even the experience of its team to manage a platform of this type in a safe and reliable manner.
WLFI, a non-transferable governance token
The development of World Liberty Financial is accompanied by WLFI, a governance token that is designed to allow its holders to participate in the project’s decision-making, such as the incorporation of new lending markets, and which is non-transferable. This means that users will not be able to trade this token, which may limit its appeal to speculators. However, by being non-transferable, perhaps WLFI seeks to maintain the focus on user empowerment.
With this development, Trump is looking to embrace cryptocurrencies and their community, offering a platform to access blockchain technology in an accessible and easy way. Despite his previous skepticism, when he claimed that Bitcoin was not backed by anything, it seems that the crypto community is becoming more and more confident that Trump could turn the United States into the global capital of cryptocurrencies.
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
Main image from Newsweek
