One of the surprises of the current United States presidential campaign has been the conversion of Donald Trump into a ‘crypto bro’. The former president has gone from campaigning against cryptocurrencies to championing them. He is now the face and soul of the World Liberty Financial (WLF) project and already has begun selling its own token, with the expectation of raising up to $1.5 billion. However, it is easy to see that the project is a botch and has very little authenticity in the ‘crypto’ world.
Last week, Trump and the other creators of World Liberty Financial began selling WLFI, the project’s cryptocurrency. In this first batch, they have put 20 billion WLFI on sale, of which 920.8 million tokens have been acquired for $13.8 million. In any case, the total supply of ‘crypto’ is 100,000 million units, so, if they are all distributed on successive occasions, up to 1,500 million dollars could be raised. All of this, with clients who are outside the United States, since marketing is not allowed within American borders.
WLFI is not an asset
But this ‘crypto’ is not used to invest, nor to acquire anything and it cannot be sold either. It is only a governance token, which means that it gives the right to participate and vote in the project’s decisions, as specified by the signature.
“You should not purchase the tokens with the expectation that their value will rise or fall as a result of future functionalities of the protocol (…) only the owners of the tokens will be able to participate in the WLF governance platform,” they detail. That is, the governance cryptocurrency It is only a token, but not an asset.
Typically, these types of tokens are used in ‘crypto’ projects that are in development and in which the people of that community are intended to participate in decision-making.
What is the project about?
Although it is still a mere proposal, it seems that the final objective of the firm is to create its own platform or application that promotes decentralized finance (DeFi). Although the purposes listed in the WLF presentation document are varied, it seems that the goal is to facilitate and bring this type of operations closer to ordinary people. DeFi allows transactions, loans or investments to be made between two people, directly, without intermediaries, thanks to blockchain technology. For example, a person could leave their bitcoins to another, with specific conditions, without a bank or financial institution involved.
There are already many applications of this type and, according to Trump’s project, what they will do is serve as a connection between WLF users and these platforms, so They will not offer these services directly, but through third parties. This means adding intermediaries to the process, just the opposite of what the ‘crypto’ world advocates, which promotes peer-to-peer technology (peer to peer). That is, with as few interveners as possible.
Additionally, World Liberty Financial specifies that they are not a decentralized autonomous organization (DAO). Again, these types of proposals try to reduce intervention or centralization to nothing, since the decisions made in these organizations are executed with smart contracts. When the conditions and instructions contained in the protocol are met, the measure is carried out automatically, without the mediation of an authority. It would be natural for the proposal that Trump and his team have launched, but, once again, the ‘crypto’ hallmarks are conspicuous by their absence. WLF is more like any standard application.
What it seems is that the former president of the United States wants to give his followers access to the ‘crypto’ and DeFi ecosystem through his own channel. Ironically, no US citizen can buy your token, nor make decisions about the project that is being developed.
It is contradictory, since the proposal boasts of patriotism and appeals on many occasions to Americans. “We want to strengthen the global status of the dollar (…). We believe that the possibility of making transactions privately and without intermediaries is a fundamental American value,” they explain. “World Liberty Financial embraces the United States as the future ‘crypto’ capital of the planet,” they continue.
The approach of Trump’s signature of strengthen the dollar as a global reserve. Another of its objectives is to promote the currency through stablecoins, cryptocurrencies with lower volatility because they are linked to another asset and have reserves of the same that support their parity. In this case, the dollar. However, this speech does not quite fit with the ‘crypto’ principles, which want to get rid of central banks and government intervention.
“We want to boost the dollar as a reserve without compromising the freedom of digital assets,” the WLF white paper states.
18 members, four Trumps
Like that, the presentation document is loaded with general purposes, but lacks details and concreteness. Right now it is difficult to imagine what form this project will end up taking. What is emphasized is that Trump is the evangelizer on this matter and that he will champion the promotion of cryptocurrencies.
But Trump will not be alone in facing this challenge. The WLF team that is going to “define the future of finance” is made up of 18 members. Among them, Donald Trump himself and three of his sons, Eric Trump, Donald Trump Jr. and Barron Trump, the latter being barely 18 years old, a minor in the United States. The position of the Republican offspring is that of ambassadors. That is, they will dedicate themselves to promotion. And for your efforts, 2.5% of all these ‘crypto’ will be distributed, which are those reserved for the team and the advisors. Among them, the presidential candidate and his family.
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