Former President of the United States, Donald Trump, has unveiled his ambition to establish America as a “crypto capital” with his new venture, World Liberty Financial.
“I vowed to Make America Great Again, this time through crypto. [World Liberty Financial] intends to position America as the global leader in cryptocurrency!” Trump shared on X. He encouraged eligible individuals to join a whitelist.
On September 16, Trump unveiled World Liberty Financial, aiming to revolutionize traditional finance and provide decentralized finance as a viable option.
The initiative will offer borrowing and lending services, striving to be more user-friendly and accessible compared to existing DeFi platforms. Reports indicate that a majority of its WLFI tokens will be sold to accredited U.S. investors.
Concerns Surrounding World LibertyFi
The launch generated excitement, with some analysts forecasting a surge in its token value. However, the initiative has sparked skepticism, with experts cautioning about potential issues.
One significant concern is that Chase Herro, who is at the helm of World LibertyFi, was previously associated with a failed cryptocurrency venture, Dough Financial, which experienced a $2 million security breach.
Another critical issue is that 70% of World LibertyFi’s tokens are earmarked for insiders, including Trump and his associates, leaving a mere 30% for public sale.
This substantial insider ownership could lead to price volatility if those insiders opt to sell their holdings. Moreover, the SEC might take a closer look at the project, as tokens are frequently considered securities.
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