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Donald Trump Unveils New Crypto Initiative Amidst Election Season
During his recent “state of crypto” address on X, former President Donald Trump finally introduced the cryptocurrency aspect of his new venture, World Liberty Financial, after a lengthy wait. However, the specifics surrounding this project remain largely vague, leaving many observers questioning the initiative’s substance.
In the month leading up to this announcement, Trump and his family have heavily promoted World Liberty Financial, suggesting that it aims to serve multiple purposes within the crypto space.
Initial reports portray World Liberty Financial as a cryptocurrency banking platform, with 70% of its equity reportedly controlled by a select group of Trump family members and close associates. The platform is expected to allow users to both borrow and lend cryptocurrency, with original investors compensated through user fees.
With just 50 days remaining until the presidential election, Trump announced plans to launch World Liberty Financial during a Twitter Spaces event held from his Mar-a-Lago estate in Palm Beach, Florida.
He began the discussion by emphasizing the crypto knowledge of his sons, stating, “They’ve shown great judgment” and specifically mentioning Barron Trump’s expertise in the field. Trump remarked on Barron’s multiple cryptocurrency wallets, highlighting the family’s involvement in the digital currency sector.
While there were plans to have Barron appear during the livestream, he departed before he could be brought on camera.
The former president then shifted to criticisms directed at the Securities and Exchange Commission (SEC), voicing concerns shared by many industry insiders regarding SEC Chair Gary Gensler’s regulatory approach, which is viewed as overly aggressive and enforcement-oriented rather than rule-based.
Trump noted that his previous indifference toward crypto changed when his NFT collections began being sold for cryptocurrency. “I think my children opened my eyes more than anything else,” he stated during the Fireside chat, reflecting a personal evolution in his stance on digital assets.
CNBC reached out to inquire about World Liberty Financial, only to receive a brief, non-specific reply from an anonymous Gmail account that did not address their questions directly.
The timing of Monday’s event coincided with a significant and alarming development in Trump’s campaign. Just a day earlier at his golf club in West Palm Beach, gunfire rang out, described by the FBI as a potential assassination attempt on Trump. Steve Witkoff, a longtime friend of Trump’s and a key figure involved with World Liberty Financial, was present during this unsettling incident.
Witkoff, who spoke alongside Trump, recounted how he introduced the Trump family to two cryptocurrency entrepreneurs, Chase Herro and Zak Folkman. He stressed that their discussions about decentralized finance underscored the potential of delivering financial services to underserved populations.
Discussing the project’s development timeline, Witkoff noted that the group had been working on this initiative for nearly nine months, indicating a significant commitment to its realization.
As one of the leaders of World Liberty Financial, Witkoff is part of a small group that reportedly holds a substantial equity share in the venture. This distribution of equity—the founders retaining 70%—is notably high for a crypto startup, raising questions among industry experts who suggest typical founder stakes hover around 20%.
Witkoff’s remarks drew parallels to Trump’s previous business endeavors, particularly Trump Media Technology Group, which emerged from a similar collaborative effort among individuals from Trump’s entertainment sphere.
The internal documentation outlining World Liberty Financial assigns various roles within the organization, designating Barron Trump as “Chief DeFi Visionary” and Trump Sr. as “Chief Crypto Advocate.” Nevertheless, reports indicate that, despite their titles, the family members will receive compensation rather than directly managing the project. External reports clarify that the platform’s management lies outside the Trump’s direct operational reach.
Inquiries made by CNBC to Eric Trump and Witkoff concerning their leadership status within the firm went unanswered, amplifying existing uncertainties regarding the platform’s structure and oversight, especially considering both are new to the cryptocurrency industry.
Much of the public’s current understanding of World Liberty has stemmed from interviews given by Trump’s sons and the leaked white paper, which serves as an unofficial documentation of the project. Prospective partners looking to access more detailed information are being asked to sign nondisclosure agreements.
Despite the Trump family forging new alliances within the cryptocurrency sector and showing increasing enthusiasm for digital currencies, some industry insiders warn that any missteps in the launch could tarnish Trump’s reputation within the greater crypto community.
An insider indicated that Donald Trump, Sr. currently has a minimal role in the project’s day-to-day operations, adding to the speculation surrounding the venture’s authenticity and efficacy as it seeks to launch amid politically charged and uncertain circumstances.
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