The post Ethereum Co-founder Warns Trump-Backed DeFi Platform Poses Risks To Crypto Industry appeared on BitcoinEthereumNews.com.

Charles Hoskinson, a prominent figure in the crypto industry as a co-founder of Ethereum and the creator of Cardano, has issued a stark warning about the potential impact of Donald Trump’s foray into the decentralized finance (DeFi) space. In an interview with the Financial Times, Hoskinson’s concerns highlight the growing intersection of politics and cryptocurrency, potentially affecting a market valued at hundreds of billions of dollars. Trump, along with his sons Donald Trump Jr. and Eric Trump, and property developer Steve Witkoff, recently announced their backing of a new DeFi platform called World Liberty Financial. The platform seeks to transform financial services by eliminating traditional middlemen such as banks and exchanges. However, Charles Hoskinson voiced concerns about this project’s potential impact on the larger crypto industry. “Trump is launching a DeFi application, and that’s scary to me as an industry, because everything Trump does the left hates with such a passion,” said Hoskinson, “He’s taken a bipartisan thing and he’s making it partisan.” Trump’s DeFi Push Sparks Crypto Political Clash The introduction of Trump’s World Liberty Financial platform has the potential to exacerbate the already contentious relationship between cryptocurrency and politics. Hoskinson fears that this move could lead to increased scrutiny and potential legal challenges from Trump’s political opponents. “The Democrats will attempt to weaponise the institutions of the United States to slow down and damage Trump,” Hoskinson predicted. He speculated that this could result in investigations by the Department of Justice, tax authorities, or the Securities and Exchange Commission (SEC) targeting the new platform. Such actions, he warned, could have far-reaching consequences for the entire crypto industry. Trump’s move comes as he actively seeks support from the crypto community, despite his earlier doubts about digital currencies. In July, the former president promised to transform the U.S. into a global…

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Filed under: News - @ September 21, 2024 1:21 pm