Key facts:
Trump’s new platform could walk a tightrope, analyst warns
The launch of his DeFi platform distances Trump from Bitcoin’s principles.
Presidential candidate Donald Trump will launch a new cryptocurrency platform today called World Liberty Financial that will be controlled by his sons Donald Trump Jr. and Eric Trump.
The Republican presidential candidate plans to speak about the new venture from his Mar-a-Lago resort tonight. The Trumps have been promoting the project on social media, as “the future of cryptocurrencies.”
«We are embracing The future with cryptocurrencies and leaving the big banks behind “slow and outdated,” Trump said in a video posted Thursday on X from Mar-a-Lago.
The Trumps’ cryptocurrency plans coincide with the former president’s campaign promise to turn the United States into a the “crypto capital of the planet”But the initiative also raises concerns about how Donald Trump could use federal resources to promote a personal financial project.
Because the Trumps have not released details about World Liberty Financial, little is known about how the platform will work. However, according to the white paper of the project Obtained by CoinDesk, 70% of the company’s tokens will be reserved for members of the initiative of a decentralized finance (DeFi) platform, while the remaining 30% will be distributed through a public sale. A portion of those proceeds will go to a founding team.
Bitcoin ecosystem analyst Simon Dixon spoke about this in episode 55 BitcoinHardTalk’s YouTube channel was cautious about the project. He believes World Liberty Financial has the potential to be “a disruptive move that shakes up the system if implemented properly, although the possibility of it being a ticking time bomb cannot be ignored.”
Dixon, who has an extensive background in Bitcoin and macroeconomics, focuses on the fact that 70% of pre-mined tokens are reserved for insiders, which he considers a high risk of regulatory scrutiny. In this regard, he is struck by the similarity it has with the Ripple case before the SEC, something he describes as “disturbing.”
It is due to the fact that the platform could face the same difficulties as other projectsthat they did not comply with the regulations, which could result in irreparable damage to Trump’s political image.
World Liberty Financial, a high risk for Trump
Analyst Simon questions the timing of this launch, suggesting it may alienate many in the Bitcoin community, which has historically been averse to centralized control.
Analyst Simon Dixon questions the timing of this launch, suggesting it may alienate many in the Bitcoin community, which has historically been averse to centralized control.
“By introducing his own token, Trump could be seen as yet another opportunist looking to capitalize on the decentralized finance trend,” Dixon said.
From the analyst’s point of view, it is clear that the success of World Liberty Financial could thus become a high-stakes issue for Trump’s presidential campaign. If the token collapses, it could be used as a political weapon against him. A similar case occurred with Facebook’s Libra, which was aborted before it took off due to regulatory pressure.
Dixon then argues that Bitcoin remains the only truly decentralized financial system and secure, capable of empowering individuals and protecting their wealth in times of uncertainty. So, one might wonder why Trump is not relying on the currency created by Satoshi Nakamoto to maintain the focus on decentralized solutions? This is as opposed to platforms that could become centralized innovations with significant risks.
Additionally, Dixon warns that in a tense geopolitical context, where relations between the United States, Russia and the United Kingdom continue to deteriorate, the launch of World Liberty Financial could be seen as both a risky strategy by TrumpIt can also be seen as a distraction from larger challenges, both financial and political.
And as Trump launches his new platform, the question remains: will World Liberty Financial be a golden opportunity or just another empty promise in the turbulent world of cryptoassets?
The answer could be behind his Ordinals project or the presidential candidate’s NFTs, which are not freely transferable or tradable until December of this year. They can only be purchased directly from the official trading card site, for USD 99, as specified. All of this is very contrary to the principles that Bitcoin defends, very focused on Privacy and sovereignty, which seem to be rights that there is not much interest in defending in the United Statescurrently.