Donald Trump and his sons are mocking the upcoming launch of a new crypto project that promises to leave “slow, old banks behind.”
Trump Launches Global Financial Freedom Fund
The project, which is set to launch on Monday, September 16, is expected to be another victory for Poly Market participants, who He predicted Trump will release a coin before the election in November.
In a post on X, Trump said he is “embracing the future in crypto” and will speak at a Twitter Spaces event at 8 p.m. ET to celebrate the official launch of World LibertyFi.
Some cryptocurrency analysts are optimistic. At least one observer predicts that LibertyFi’s global token could surge “10-fold” in value over the next two weeks (see below). Bloomberg However, the report warns that World LibertyFi has some major red flags.
“It’s for Trump, insiders.”
First, Chase Herro, an entrepreneur who has been involved in other crypto projects in the past, is taking charge of it.
Herro’s latest project was Dough Financial, a lending platform similar to AAVE (AAVE), JustLend, and Spark. According to Davey’s CallDough’s assets peaked at $3.2 million before the exploit resulted in over $2 million being stolen. Now the total value locked is just $10,863 and it appears to be inactive.
The second warning sign is that 70% of all World Liberty Financial tokens will go to insiders, including Trump. While it’s common for most tokens to go to insiders in the crypto industry, 70% is a big number.
Crypto projects where internal contributors own large amounts of assets pose a significant risk because their prices are at risk when they decide to sell their stakes.
Additionally, the network may face regulatory hurdles with the Securities and Exchange Commission, which considers the tokens to be securities. It argues that token buyers should have more information about the project and the people behind it.
There is also the risk of competition in the lending industry, which has become extremely saturated in the past few years. In addition to AAVE and JustLend, some of the more well-known names in the industry are Morpho, LayerBank, and Fluid. Most of these companies have struggled to gain market share.
Meanwhile, most of the newly launched crypto projects are not performing well. Recently launched tokens such as Notcoin (NOT), Pixelverse, and Wormhole (W) have dropped more than 60% from their all-time highs.
Trump mixes politics and business
Critics also question Trump’s logic in spending valuable campaign time promoting a lucrative project just 50 days before Election Day.
Cryptocurrencies are the latest product to be sold by the twice-impeached former president. Other products include:
- Signed sneakers, with only one pair apparently left. sale For $9,000.
- The Trump-branded Bibles, which are essentially replicas of the King James Version of the Bible, retail for $59.99 plus tax and shipping, and are believed to have grossed $300,000.
- He also reported that he had achieved more than $12 million From a series of non-fungible tokens, or NFTs, that feature photoshopped images of the former president standing in front of various backgrounds and wearing costumes (such as a sheriff’s hat and a superhero cape).
- A photo book titled “Our Journey Together” sells for $100 on his website.
Data by Arkham It shows that his cryptocurrency portfolio is worth more than $5.7 million.
It was not immediately clear whether Trump was promoting the event to fund his campaign or to pay off legal debts. In August, Trump’s campaign raised $130 million, while Vice President Kamala Harris raised $361 million.
It is worth noting that Trump was fined $464 million earlier this year in a civil case.
As for his company, Trump Media & Technology, the stock is down about 80% from its high point this year and is hovering around its lowest point since the SPAC merger. Estimates His net worth is expected to reach $3.9 billion, down from more than $7 billion earlier this year.
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