Donald Trump and his sons are teasing the upcoming launch of a new cryptocurrency project that promises to leave “slow and outdated banks” behind.
Trump to launch World Liberty Financial
The project, which is It is expected to be released on Monday, September 16.It will be another victory for the Polymarket participants, who They have predicted that Trump will flip a coin before the November election.
In a post on X, Trump said he is “embracing the future with crypto” and will speak during a “Twitter Spaces” event at 8 p.m. EST to commemorate the official launch of World LibertyFi.
Some cryptocurrency analysts are excited. At least one observer expects the World LibertyFi token to increase by “10” in the next two weeks (see below). Bloomberg The report, however, warns that World LibertyFi has some major red flags.
It’s for Trump, insiders
First of all, it is run by Chase Herro, an entrepreneur who has been involved in other cryptocurrency projects in the past.
Herro’s latest project was Dough Financial, a lending platform similar to AAVE (GHOST), JustLend and Spark. According to DeFi CallsDough attracted a peak of $3.2 million in assets before an exploit grabbed over $2 million. It now has just $10,863 in total value locked and appears to be dormant.
The second red flag is that 70% of all World Liberty Financial tokens will be reserved for insiders, including Trump. While it is common for most tokens to be earmarked for insiders in the cryptocurrency industry, 70% is a high figure.
Cryptocurrency projects with a large percentage of insider ownership are a big risk because their prices are vulnerable when insiders decide to sell their holdings.
Additionally, the network could face regulatory hurdles with the Securities and Exchange Commission, which considers these tokens to be securities. He argues that token buyers should have more information about the project and the people behind it.
There is also the risk of competition in the lending sector, which has become very crowded in recent years. In addition to AAVE and JustLend, some of the most prominent names in the sector are Morpho, LayerBank and Fluid. Most of them have struggled to gain market share.
Meanwhile, most newly launched cryptocurrency projects are not doing well. Recently launched tokens like Notcoin (NO), Pixelverse and Wormhole (I) have fallen more than 60% from their all-time highs.
Trump mixes politics and business
Critics also question the logic of Trump spending precious campaign time promoting a lucrative initiative with just 50 days until Election Day.
Cryptocurrencies are just the latest product being sold by the twice-impeached former president. Other items include:
- Signed sneakers, with a pair apparently sale for $9,000.
- The Trump-branded Bibles, which are basically a reproduction of the King James I Bible, retail for $59.99 plus tax and shipping. They are believed to have generated $300,000 in total.
- He also reported that he earned more than 12 million dollars from his series of non-fungible tokens, or NFTs, that feature Photoshopped images of the former president standing in front of various backgrounds and dressed in costumes (i.e. sheriff hat and superhero cape).
- A photo book titled “Our Journey Together” sells for $100 on her website.
Data from arkham shows that his cryptocurrency portfolio is worth more than $5.7 million.
It’s not immediately clear whether Trump is promoting the event to fund his campaign or to pay off mounting legal debts. In August, Trump’s campaign raised $130 million, while Vice President Kamala Harris raised $361 million.
It’s worth noting that Trump was fined $464 million earlier this year in a civil case.
As for his company, Trump Media & Technology, shares have fallen nearly 80% from their high this year and are at their lowest point since the SPAC merger. Forbes Now Estimates His net worth will be $3.9 billion, up from more than $7 billion at the start of this year.
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