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A leaked World Liberty Financial whitepaper has cast further doubt on the viability of the Trump DeFi project. For weeks now, anticipation has been building around a mysterious Trump crypto project. Last week U.S. President and Republican presidential nominee Donald Trump announced the rebranding of the crypto project from “The DeFiant Ones” to “World Liberty Financial”. The platform’s promotional materials claim it aims to “put the power of finance back in the hands of the people” and position itself as an antidote to a “rigged” traditional financial system. However, a draft white paper obtained by CoinDesk has cast doubts on these assertions. According to the document, a significant 70% of the platform’s governance tokens, WLFI, are allocated to the founders, team, and service providers. This contrasts with other major blockchain projects such as Ethereum and Cardano, where insiders held far less at their launches. Ethereum’s insiders, for example, had about 16.6% of ether, while Cardano’s insiders retained 20% of ADA tokens.  This high insider allocation has led some industry advisors to question the project’s intentions. CoinDesk’s report also links World Liberty Financial to individuals involved in a recently hacked crypto app, Dough Finance, further complicating the project’s outlook. The whitepaper suggests that the Trump crypto project will be built on Aave, an existing DeFi platform on Ethereum. The proposed WLFI token will be non-transferable and locked indefinitely, a decision possibly aimed at avoiding securities law violations. The white paper specifies that every WLFI buyer will be screened, erroneously citing FinCen instead of the appropriate OFAC, for compliance with U.S. sanctions. Despite distancing the project from any political affiliations in its white paper, the involvement of Trump and his family has led to concerns about the project’s credibility and potential legal implications.  Nic Carter, a notable crypto figure and Trump supporter,…

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Filed under: News - @ September 4, 2024 10:25 pm