World Liberty Financial: The DeFi Project Boosted by Trump
World Liberty Financial is an Ethereum and Scroll-based project for lending and borrowing that has recently started to get much attention within the crypto community. The project recently made headlines with public support from 2024 U.S. presidential candidate Donald Trump.
World Liberty Financial aims to differentiate its development from other lending and borrowing applications because it contributes to eliminating legal barriers to accessibility.
Since the majority of companies in the same field are limited by operation capabilities due to hurdles around regulatory circles across different regions, this legality aspect, therefore, gives World Liberty Financial a chance to ensure it turns out to be a fairly competitive alternative within the DeFi field.
On October 15, 2024, former President Donald Trump officially introduced the token of World Liberty Financial, WLFI, in what is generally considered a first in the history of US presidential campaigns to issue a crypto asset directly related to a political race.
WLFI token will rhyme with Trump’s support for DeFi and echo his support of the crypto market, which distinguishes him from competitors.
The token is designed to unlock new financial opportunities through DeFi and empower users to borrow, lend, and invest in decentralized protocols. By bypassing traditional banking systems, which Trump has repeatedly attacked as restrictive and biased, the token will purportedly give users from all over the world access to alternative financial services.
The WLFI token, besides its practical use, serves like a source of campaign funding, making Trump a direct participant in the crypto space.
According to Bloomberg, the Trump family is not part of the ownership or management of World Liberty Financial. It appears to be controlled by. Zachary Folkman, who is listed as the head of operations, and. Chase Herro, who oversees data and strategy.
Both Folkman and Herro were previously affiliated with Dough Finance, also along with the two other team members, Octavian Lojnita and a developer using the pseudonym “Boga.” So many veterans from Dough Finance create a heavy concern about the security of the new project and the competency of its team.
The registered owner, Folkman, has various entrepreneurial experiences. Outside the world of cryptocurrency, the same Folkman once founded the company Date Hotter Girls LLC, through which he held seminars on dating strategies.
Read more: World Liberty Financial Opens KYC For WLFI Token Sale
In 2024, Donald Trump emerged as perhaps the most high-profile cryptocurrency advocate-ambitious for the United States to take up the mantle of global digital finance centre. He has been soliciting donations in cryptocurrencies for his political interests and even expressed ambitions about turning the country into a sort of “crypto capital” through the facilitation of Bitcoin mining and other blockchain-related businesses.
At the very core of Trump’s position on pro-crypto lies his involvement with World Liberty Financial. Tagged with slogans like “revolutionize finance” and “make finance great again,” World Liberty Financial seeks financial inclusion outside the boundaries set by conventional systems of banking, such that it would make finance more accessible and fair.
Donald Trump has not been the only one publicly promoting World Liberty Financial. The initiative has also included his sons, Donald Trump Jr. and Eric Trump.
Filings from the project mention the Trump family, with the disclaimer that such mentions are purely informational and do not confirm formal endorsement. Whatever the case, support from Trump has given World Liberty Financial significant exposure, in addition to that from other prominent figures in finance and politics.
Previously, former President Donald Trump was criticized for rather disparaging remarks on digital currencies.
In July 2019, Trump began voicing his discontent with the cryptocurrencies: “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.” He warned that unregulated crypto assets are capable of facilitating unlawful behaviour, including the drug trade and other illegal activity. His administration shared this view, with Treasury Secretary Steven Mnuchin mere days later proposing stricter regulations on crypto-assets.
Fast forward five years, and Trump has made nothing short of a dramatic about-face. The 2024 Republican presidential candidate has pitted himself against President Joe Biden, going so far as to say the president’s antagonism toward Bitcoin serves only to empower adversaries such as China and Russia. But that is a surprise to many, as China has banned all cryptocurrencies, and the far left generally criticizes Bitcoin because of its speculative nature and for a connection to capitalism.
Trump’s move to crypto was gradual. Although he softened his rhetoric earlier this year and called for some regulations around Bitcoin, it wasn’t until May that he fully embraced crypto assets in a speech at the Libertarian Party’s national convention. On Truth Social, the social media platform he founded, he said, “I’m very positive and open minded to cryptocurrency companies, and all things related to this new and burgeoning industry.”
Read more: World Liberty Financial Has Now Reached 15,000 Token Holders
The WLFI token sale started on October 14, 2024, for whitelisted investors only. Potential investors who wish to participate in the buying will have to pass through identity verification and Know Your Customer checks.
Whitelist candidates will include:
The sale aimed to raise at least $300 million, putting the token project value at $1.5 billion. Due to unsatisfactory sales, though, the team was forced to slash their target 90%.
Besides Donald Trump (Chief Crypto Advocate) and his 3 children (Web3 Ambassador), World Liberty Financial was also co-founded by Chase Herro, Zak Folkman, Steven Witkoff, Zach Witkoff and many other staff.
The project does not provide much information about its investors and partners at the moment, but World Liberty Financial’s security contributors include Fuzzland, PeckShield, BlockSec and Zokyo.
Meanwhile, World Liberty Financial is preparing to build on the Aave decentralized finance platform, building on top of the Ethereum blockchain.
A governance proposal posted on the Aave forum showed that the platform would support a few popular tokens, specifically Ether (ETH), Wrapped Bitcoin (WBTC), Tether (USDT), and USD Coin (USDC). Along with these large assets, World Liberty Financial is ready to bring in tokens that haven’t been compatible with the primary market on the Ethereum mainnet.
Moreover, the project is not restricting its focus to Aave only. It’s also looking at the extension of its operations in the Scroll ecosystem.
Start by connecting your crypto wallet to the platform. This is essential for executing transactions and holding your WLFI tokens securely.
Next, select a payment token to exchange for WLFI. You have four options: Ethereum (ETH), USD Coin (USDC), Tether (USDT), or Wrapped Ethereum (WETH). Choose the one that best fits your holdings.
Determine how much of your selected payment token you wish to use for the purchase. Ensure that the amount does not exceed your current balance to avoid transaction issues.
Before moving forward, take the time to read and understand the Token Sale Terms and Conditions. Once you’ve reviewed the document, indicate your agreement by checking the provided box.
If you opted to pay with an ERC20 token such as USDC, USDT, or WETH, you’ll need to approve the transaction.
When you’re ready to complete your purchase, click the “Buy Now” button. A prompt will appear in your wallet requesting you to sign the transaction to confirm your purchase of WLFI. Make sure to review all transaction details carefully, as this step is irreversible.
Once the transaction is successfully processed on the blockchain, you will receive a notification confirming your purchase, along with the total amount of WLFI acquired. Please allow a few moments for the transaction to confirm, after which your new WLFI tokens will be available in your wallet.
In contrast to a standard cryptocurrency, WLFI has one key difference: the token cannot be transferred from one wallet to another. This means that accredited investors cannot sell the token to non-accredited investors, and any transaction involving a non-U.S. resident selling to a U.S. resident is not allowed.
Holders of WLFI are not allowed to even sell their tokens. The only thing they can do is wait until the related decentralized finance protocol opens and they start to take part in it.
According to the claims of the developers of the project, after the protocol is opened, token holders will have voting rights over proposals that would further stipulate the protocol. Therefore, the conditions of the token sale say quite clearly that it is not transferable to another user.
Unlike normal token presales, which allow all investors open access, WLFI was open only to accredited U.S. investors and non-residents, thereby constricting market access to the digital token.
One of the major problems that contributed to this token’s failure is that it is untransferable. WLFI Tokens cannot be sent from one wallet to another. Thus, accredited investors cannot sell to unaccredited ones.
In addition, given the technological issues, the sale did not go particularly smoothly. The website could not even handle such a small volume, given the very modest goal of selling several hundred million tokens.
Besides, there was an overarching scepticism regarding the token that may have prevailed in the confidence of the buyers. A great number of onlookers believed this project was like a scam or some sort of dubious venture that questioned its legitimacy.
As of early November 2024, Donald Trump’s crypto portfolio has been valued at around $5.9 million, with notable assets including the MAGA Memecoin. Other holdings in his portfolio include Wrapped Ether (WETH), Ethereum (ETH), and a variety of meme tokens like BABYTRUMP and MVP tokens.
World Liberty Financial is a DeFi platform recently promoted by former President Donald Trump. The project aims to provide financial services primarily to unbanked and underserved communities.
Yes, World Liberty Financial is backed by Donald Trump. Trump’s involvement is central to the initiative, as he has officially launched WLFI and has plans for a governance token and a stablecoin pegged to the US dollar.
World Liberty Financial is positioned to appeal to the cryptocurrency community, a demographic that has grown increasingly influential in political discourse. Trump has openly expressed his support for cryptocurrency, framing it as a means to enhance financial independence.
While WLFI has potential due to its celebrity backing, it should be noted that the token is not yet tradable, so it is not clear whether this is a good investment project.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Abu Dhabi, UAE, 21st November 2024, Chainwire
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