Former US President Trump has made headlines again for his stance on the crypto community. World Liberty Financial, a new crypto project supported by the Trump family, officially disclosed details on Monday.

On Monday evening, September 16th, Eastern Time, Trump revealed the establishment of World Liberty Financial to his 90 million followers on social media platform X. According to the media, Trump did not specifically introduce the project during the live broadcast on X, but broadly discussed the blockchain industry, his personal success with non-fungible tokens (NFTs), and the generational learning curve of cryptocurrencies.

The media pointed out that over the past month, Trump and his family have been aggressively promoting World Liberty Financial with vague descriptions and promises of doing many things. Wall Street Watch mentioned that at the end of last month, Trump made a post on X stating that his plan will "ensure that the United States becomes the capital of global cryptocurrencies," tagging a decentralized finance (DeFi) project called World Liberty Financial. This is a project that Trump's son has been promoting recently.

On Monday evening, the team behind World Liberty Financial introduced the project on a live broadcast on X, stating that it will be a banking platform for cryptocurrencies, encouraging the public to borrow, lend, and invest in cryptocurrencies. The platform will launch a complementary token called WLFI.

Zak Folkman of World Liberty Financial stated that the equity structure of the WLFI token will be as follows: 20% of the project tokens will be allocated to the founding team, including the Trump family, 17% of the tokens will be reserved for user rewards, and the remaining 63% of the tokens will be available for the public to purchase. There will be no presale of the tokens.

According to an internal outline draft of the World Liberty Financial project that was previously exposed, the founders will hold 70% of the shares, raising concerns that this project is just a scheme to make quick money.

Some commentators previously believed that Trump's attitude towards cryptocurrencies has made a complete 180-degree turn compared to the past, as he once considered them as a criminal scam during his presidency. Now, his support for the crypto industry has prompted some executives in the field to stand with him, including prominent capitalists Marc Andreessen and Ben Horowitz.

At the Bitcoin 2024 conference in July this year, Trump also made a series of eye-catching commitments to the cryptocurrency community, such as making the United States the first country to designate Bitcoin as a strategic reserve asset; firing the current chairman of the U.S. Securities and Exchange Commission (SEC) who is seen as having a hostile attitude towards the cryptocurrency industry; establishing a Presidential Advisory Committee on Bitcoin and Cryptocurrencies; and encouraging power plants to strengthen electrical utilities supply for Bitcoin mining.

During X's live broadcast on Monday, Trump also mentioned his transformation. He claimed that he was initially 'not very interested' in cryptocurrencies, but when his NFT series sales were paid in cryptocurrencies, 'I was amazed by what my kids had done.' He concluded his speech by saying, 'Cryptocurrency is one of the things we must do, whether we like it or not.'

On Monday evening, Donald Trump's eldest son, Donald Trump Jr., stated that the banking industry 'has become politicized' and that DiFi 'has eliminated political factors' after his father voiced his support.

DiFi is seen as a branch of the cryptocurrency field. The traditional financial system architecture is centralized, but DiFi, as the name suggests, offers a decentralized alternative. It uses a public blockchain network for transactions, replacing centralized service providers such as custodians, central securities exchanges, or trustees with so-called smart contracts. Smart contracts are instructions in the form of computer code. This code is stored on a public blockchain and is executed as part of the system's consensus rules. Supporters of DiFi claim that projects like this will achieve financial democratization.

Some commentators argue that Trump seems to be using the attention garnered from his presidential flagship campaign to drive new business ventures, and World Liberty Financial could potentially raise questions about constitutionality. This is because the U.S. Constitution states that the President cannot receive compensation from foreign governments without congressional approval, including money or valuable items. If the profits that flow into Trump's hands from this project come from prohibited sources under the Constitution, it would raise constitutional concerns.

Editor/Rocky