As a seasoned crypto investor with years of experience under my belt, I must admit that I approach any new venture with a healthy dose of skepticism. The latest Trump family business foray into DeFi, now rebranded as World Liberty Financial, has raised more than a few eyebrows in the community.
In simple terms, the newly announced financial endeavor by the Trump family, initially marketed as a Decentralized Finance (DeFi) platform called “The Defiant Ones,” has been met with controversy only a few days after its launch and is now known as World Liberty Financial.
It’s reported by CoinDesk that World Liberty Financial, where Eric Trump and Donald Trump Jr. serve as representatives, is additionally connected to people associated with the liquidity protocol Dough Finance, a shift from its earlier stance of defiance.
On July 12, remember the incident where Dough Finance suffered a loss of approximately $1.8 million, due to a flash loan attack that targeted both Ethereum (ETH) and USD Coin (USDC).
Zachary Folkman and Chase Herro, who founded Dough Finance, have also taken leadership roles in the new company led by Donald Trump. Previously, they established Date Hotter Girls LLC and cryptocurrency-centric Pacer Capital.
Trump initially supported the Decentralized Finance initiative in a post dated August 22nd on Truth Social. He later discussed it again on August 29th, at which point it had been renamed to World LibertyFi.
Two relatives’ accounts associated with Solana’s blockchain were later exploited for the unauthorized promotion of a fraudulent meme cryptocurrency. Among those affected was Lara Trump, who serves as the co-chair of the Republican National Committee.
As a researcher, I find myself expressing concerns similar to those of Nic Carter regarding this initiative. In plain terms, he finds it questionable and voiced his opinion bluntly through Politico: “This is a significant error.” He suggests that Trump’s inner circle appears to be capitalizing on Trump’s recent crypto endorsement in an unsophisticated manner, which to him seems more like cashing in rather than fostering genuine industry growth. Furthermore, he expresses his belief that this move could potentially harm the goodwill they’ve built with the crypto community thus far.
Is there any good faith involved here, considering many well-known entities from this field have been convicted for fraud?” (Note: This is a paraphrase, not a direct translation.)
Previously, the ex-CEO of Binance (Changpeng Zhao) faced a four-month incarceration, crypto tycoon Do Kwon endured over six months behind bars in Montenegro, and FTX’s creator (Sam Bankman-Fried) was handed a 25-year prison term.
Trump has had his share of business endeavors tainted by illegality, such as with the Donald J. Trump Foundation and Trump University. Notably, he’s the first ex-U.S. president to be found guilty of committing felonies.
Trump, crypto and trust
In recent campaign speeches leading up to the 2024 presidential election, Trump – who previously expressed skepticism towards Bitcoin (BTC) – has been incorporating pro-cryptocurrency ideas.
In May, he made history by becoming the initial significant political contender to receive cryptocurrency contributions. Some of his pledges include establishing a government-supported digital currency reserve and removing Gary Gensler, the frequently criticized chairman of the Securities and Exchange Commission.
I’m not particularly fond of digital currencies like Bitcoin and their counterparts, as I don’t consider them true forms of money. Their worth can rapidly fluctuate and seems to be largely determined by speculation rather than tangible factors. Moreover, due to the lack of regulation, Crypto Assets can potentially be used for illicit activities such as drug trafficking and other criminal endeavors.
— Donald J. Trump (@realDonaldTrump) July 12, 2019
His one-eighty won him the support and financial backing of such deep pockets as Cameron and Tyler Winklevoss — founders of the Gemini exchange — who gave $1 million in Bitcoin each to the former president.
However, since that time, these unscrupulous individuals have been exploiting his “MAGA” supporters through bogus cryptocurrency sites and deceptive donation platforms. In June, a London-based cybersecurity firm known as Netcraft started tracking various attacks linked to the Trump campaign, unveiling fraudulent donation schemes and phishing attempts.
The latest scrutiny surrounding World LibertyFi and its World Liberty Coin is no different.
For several weeks, the Trump brothers hinted at a financial undertaking intended to disrupt conventional banking systems. Upon its launch, this initiative provided ample material for fraudsters to exploit.
Carter, who continues to back Trump, cautions that the World Liberty initiative could potentially harm Trump’s chances of winning the election (since Trump himself has only minor involvement in it). Surveys suggest that the contest between Republican nominee Trump and Democratic Vice President Kamala Harris in the presidential race is very close.
He stated on September 3rd that this new DeFi project could potentially be the most enticing target in history, as it’s a fork from a protocol that had previously been hacked. Moreover, it seems ripe for scrutiny from the SEC. At its best, it’s a needless diversion; at its worst, it could lead to significant embarrassment and further legal complications.
Is there something we, as members of Crypto Twitter, could potentially unite on to prevent the release of World Liberty Coin? I believe it has the potential to negatively impact Trump’s election chances, particularly if it gets hacked (given its high-profile nature and the fact that it’s a fork from a protocol with a history of…). Let me rephrase: Could we as a community brainstorm ideas to possibly halt the deployment of World Liberty Coin? I strongly feel that it could potentially harm Trump’s electoral chances, especially if it’s vulnerable to hacking (it would be an attractive target in DeFi and it’s based on a protocol with a past…).
— nic carter (@nic__carter) September 4, 2024
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2024-09-07 23:54