Donald Trump has launched a new cryptocurrency project called World Liberty Financial (WLF), which has raised concerns among industry leaders.
The project, led by Trump and his sons, started a token sale this week to secure $300 million but only raised $12 million in the first 24 hours. While Trump attempts to position himself as a crypto advocate, many in the industry fear his involvement could harm cryptocurrency’s fragile reputation.
Questionable leadership and business model
The leadership behind World Liberty Financial has raised alarms due to the questionable backgrounds of key figures involved. Two co-founders, Chase Herro, and Zachary Folkman, have faced legal issues. Herro has a history of drug-related charges and fraud lawsuits, while Folkman has dealt with credit card debt disputes. Their previous venture, Dough Finance, was hacked for $2 million just months ago, further eroding their confidence in managing a new financial platform.
WLF’s business model is causing concern. Despite being promoted as a decentralized platform, the tokens offered by WLF do not grant economic rights to holders and cannot be traded. This lack of transparency and functionality goes against the core values of the crypto community, which emphasize freedom and openness. Critics argue that Trump’s role in the project appears limited to social media promotion, raising doubts about his genuine commitment to the industry.
Impact on the Crypto Industry
The timing of Trump’s venture has also drawn criticism. The cryptocurrency market has struggled to recover from crashes and scandals, most notably in 2022, when several significant players faced legal challenges. As the industry works to rebuild trust with investors and push for regulatory clarity, introducing a high-profile but questionable project like WLF could set back these efforts. Industry leaders worry that if WLF fails, it could further damage crypto’s reputation at a critical time.
Trump has positioned himself as an ally to the cryptocurrency world, promising to end what he calls the industry’s “persecution.” While his venture has garnered support from some Silicon Valley backers, many in traditional finance remain skeptical. Some analysts believe that Trump’s involvement could create more problems than solutions for the sector.
Political ramifications and polling
The launch of World Liberty Financial comes as Trump is trailing Kamala Harris in key political polls. According to recent data, Harris leads Trump with 50% of the vote to his 47%, with several states still classified as tossups. In particular, Harris has seen a surge in support from Hispanic voters, holding a 25-point lead over Trump in that demographic.
Despite these challenges, Trump has maintained a lead in some markets, particularly in cryptocurrency-focused platforms like Polymarket, where he is ahead by 19 points. However, with 4% of voters still undecided, the race remains fluid, and both candidates continue pushing their respective agendas.
Trump’s new crypto venture could influence public opinion as the November election approaches, but its long-term success remains doubtful. Concerns surrounding World Liberty Financial’s leadership and business practices may overshadow Trump’s efforts to court the crypto community.