The former U.S. president Donald Trump has recently launched the new crypto project, World Liberty Financial (WLF), raising concerns about the conflict of interest. The asset was made by Trump and his sons, Eric and Donald Jr., and it could change the banking systems we remember for using stablecoins instead.
As there are not many details available, certain people in the market are concerned about potential conflicts of interest, considering Trump’s political ambitions.
World Liberty Financial and Its Focus on Stablecoins
World Liberty Financial’s focus is now on stablecoins – crypto assets designed to keep a strong price by linking to traditional currencies such as the US dollar. The stability it offers makes it one of the most attractive options for investors right now, especially when compared to some riskier options like Bitcoin or Ethereum.
Trump’s sons said that WLF will offer lending, money transfers, and digital real estate services, trying to minimize the need for traditional banks.
While all specifics still remain a mystery, early reports say WLF will focus on providing safe and user-friendly crypto services. To fully use that potential, users must store their assets in this secure wallet, providing a safe environment for their portfolio.
Controlling and Owning WLF
WLF’s governance structure is really interesting, as the platform is expected to use blockchain-powered governance tokens that provide voting rights but no economic benefits such as dividends or profits.
Each owner will be limited to holding only 5% of the tokens, with 63% available to the public, and the remaining tokens split between user rewards (17%) and compensation for WLF staff and advisers (20%).
At first, a leaked draft suggested 70% of tokens would be controlled by the project’s founders and employees, with certain investors raising concerns about the true intentions behind the project. Anyway, these numbers have since been changed, which will most likely calm the community.
Trump’s dealing with the crypto project has started big ethical debates, mostly because of his current political status. So, if he wins the presidency in 2024, he could directly regulate the crypto industry, potentially creating conflicts of interest.
Critics say that a combination of Trump’s political power and his business projects like the WLF token could hurt trust in Trump and his work.
Community Concerns and Conflicts of Interest
Trump’s thoughts on crypto assets have changed a lot since 2021, when he called Bitcoin a “scam” and a “disaster waiting to happen.” Now, partly because of his sons’ influence and the success of his blockchain-based NFT sales, which have earned him over $7 million in royalties, Trump seems to have realized the importance of digital assets.
His sudden change in opinion, combined with the new WLF project, brings questions about how his personal business interests might impact some future regulatory decisions if he returns to the office.
Many industry experts have commented on the potential conflicts of interest, as Trump continues promoting his family’s crypto business while running the political campaign at the same time. If elected, Trump could have a lot of power over the crypto regulations, creating a serious ethical dilemma on the market.
Danielle Brian from the Project on Government Oversight said that Trump’s involvement in the crypto industry could build “serious conflicts of interest,” an idea shared by Trump biographer Tim O’Brien, who called it “a conflict of interest in motion.”
The World Liberty Financials’ Next Step
Despite all these concerns ahead of the election, Trump’s new altcoin remains an interesting opportunity for investors. As he’s using crypto for his campaign, many seasoned analysts believe Trump could lead the market to the next level if he wins the election.
If everything goes as planned, and Trump and his family handle all these problems, World Liberty Financials could easily become the next big name in the industry.