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Trump-Backed DeFi Platform World Liberty Financial is Preparing!

Writer's picture: Blockonome GnomeBlockonome Gnome

The new DeFi platform, backed by Donald Trump, initiates KYC for its WLFI token sale, sparking debate and skepticism.


Trump-Backed DeFi Platform World Liberty Financial is Preparing!

World Liberty Financial (WLFI), a decentralized finance (DeFi) platform backed by former U.S. President Donald Trump and his family, has launched the Know Your Customer (KYC) process for the sale of its governance token, WLFI. As part of this initiative, early access through whitelisting is currently available to U.S. accredited investors and all non-U.S. citizens, but many Americans are still restricted from participation due to regulatory hurdles set by the U.S. Securities and Exchange Commission (SEC).


To qualify as an accredited investor under SEC guidelines, individuals must meet specific financial criteria, such as earning an annual income exceeding $200,000 or having a net worth over $1 million. For now, only those who meet these requirements can engage in the whitelist, leaving many potential investors out of the process. Despite this limitation, WLFI stated that it is working toward making the platform available to all Americans in the future. "We plan for all Americans to be able to use this platform in the future, giving everyone access to the tools and opportunities that have been restricted for far too long," said the project’s team.


While details about World Liberty Financial remain scarce, what is known is that Donald Trump is taking the lead as the project's "chief crypto advocate." His sons, Eric Trump and Donald Trump Jr., will serve as Web3 ambassadors, and Barron Trump will contribute as the platform’s "DeFi visionary." The platform will operate on the Ethereum blockchain and use Aave's DeFi protocol, facilitating borrowing and lending services for digital assets.


The WLFI token is central to the platform’s governance system, but its utility has raised eyebrows. Unlike typical cryptocurrencies, the WLFI token will be non-transferable, meaning it cannot be bought, sold, or traded. Its sole function is to give holders voting power within the platform’s ecosystem. This lack of liquidity has led to questions about its investment potential and the long-term appeal for users.


The token allocation strategy has also sparked concerns. Reports indicate that 63% of WLFI tokens will be offered in a public sale, while 20% will be allocated to the founding team, including the Trump family. The remaining 17% will be distributed as rewards to users. Critics have noted the potential concentration of power within the project’s leadership, casting doubt on the transparency and decentralization goals of the platform.


Despite high-profile backing, the project has faced skepticism from various figures. Billionaire entrepreneur Mark Cuban dismissed Trump’s efforts in DeFi as "desperation," drawing parallels to Trump’s previous ventures in non-fungible tokens (NFTs). Anthony Scaramucci, founder of SkyBridge and former Trump White House communications director, labeled WLFI a "scammy grift" that could tarnish the reputation of legitimate digital finance efforts.


However, not everyone shares this critical view. David Nikzad, co-founder of DeFi.Gold, sees Trump’s involvement as an opportunity to bring significant attention to the DeFi space. He believes Trump’s “bold tactics” could attract new users and possibly legitimize decentralized finance in the mainstream.


WLFI’s launch comes at a time when Trump’s presidential bid is ramping up, and the platform’s introduction has raised concerns about its potential impact on his electoral prospects. Nic Carter, co-founder of Castle Island Ventures, has publicly voiced his fears, urging collective action to prevent the launch of WLFI, citing concerns that the project could negatively affect Trump’s campaign.


While the platform’s ultimate success remains to be seen, World Liberty Financial is already drawing both attention and controversy. Its combination of high-profile support, restrictive access, and a unique token model makes WLFI a focal point in discussions around the future of DeFi—and Trump’s involvement in the space.


photo source / Blockonome

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Blockonome's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.

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