Trump’s new crypto project could be decentralized in name, centralized in reality

Former President Donald Trump, along with his children, is diving deeper into the world of cryptocurrency with an upcoming platform called World Liberty Financial. The field? Empowering everyday people and challenging the traditional “rigged” financial system. However, CoinDesk reports that there is a catch: although it promises decentralized control, 70% of the platform’s governance tokens, WLFI, could be held by insiders: founders, team members, and service providers. So while the rhetoric is about decentralizing finance, real control may remain in the hands of a select few.

Citing a draft white paper, CoinDesk reports that the remaining 30% of the tokens will be distributed through a public sale, and even with that, the founding team will also receive a portion of the proceeds. The creator (or creators) of Bitcoin, known as Satoshi Nakamoto, has about 5% of the total supply; in comparison, 70% control by insiders would be significant.

Not only that, but the report said that the WLFI token will also be non-transferable and locked indefinitely in a wallet or smart contract. The token could only be unlocked through protocol governance procedures, if applicable, in a manner that complies with applicable law, per CoinDesk.

Trump’s crypto project linked to former pickup artist

The World Liberty Financial project will be built on the Ethereum-based lending platform, Aave. Donald Trump is listed as the “Chief Crypto Advocate” of the project. His sons, Eric Trump and Donald Trump Jr., will participate as “Web3 ambassadors.”

The operational side of the project is led by Zachary Folkman and Chase Herro. Folkman, who served as chief operating officer, and Herro, who oversaw data and strategy, previously co-founded Dough Financea blockchain application that was recently compromised in a hacking incident. Folkman’s background includes running a company called Date Hotter Girls LLC and creating YouTube seminars focused on how to attract women.

Crypto experts oppose Trump’s project

This election year, Trump ran as one pro-crypto candidate who aims to establish the United States as the crypto capital of the world. However, there are questions about World Liberty Financial’s intentions: Is it really focused on creating a new decentralized finance (DeFi) platform, or is it simply an attempt to capitalize on the Trump family’s reputation?

Even some of the former president’s supporters warn that the plan could have negative repercussions. Nic Cartera prominent figure in the crypto industry and Trump supporter, has expressed concern about whether the crypto community can block the launch of this project.

he he added in his tweet: “I think it really hurts Trump’s electoral prospects, especially if it gets hacked (it will be the juiciest DeFi target ever and it’s derived from a protocol that was hacked). It’s also an obvious target for the SEC. At best it’s a unnecessary distraction, at worst a huge embarrassment and source of (additional) legal trouble, so are we signing a petition or what?

At X, Richard Turrin, an expert in financial technology, called the project a scam and asked what it offers that stablecoins like Circle or Paxos lack.

With the US presidential election less than two months away, Donald Trump’s controversial crypto project has sparked unrest in the cryptocurrency community. Many are wondering why, after successfully rallying the support of crypto enthusiasts, Trump is moving forward with a project mired in so much controversy.