Trump's new crypto project could be decentralized in name, centralized in reality

Just weeks before the presidential election, Donald Trump's controversial cryptocurrency project has sparked some concerns

By Vinamrata Chaturvedi3 min readUpdated September 5, 2024

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Former President Donald Trump, alongside his sons, is diving deeper into the world of cryptocurrency with an upcoming platform called World Liberty Financial. The pitch? Empowering everyday people and challenging the “rigged” traditional finance system. However, CoinDesk reports that there’s a catch: While it promises decentralized control, 70% of the platform’s governance tokens, WLFI, could be kept by insiders — founders, team members, and service providers. So, while the rhetoric is about decentralization of finance, the real control may remain in the hands of a select few.

Citing a white paper draft, CoinDesk reports that the remaining 30% of the tokens will be distributed via a public sale — and even through that, the founding team will also receive a portion of the proceeds. Bitcoin’s creator (or creators), known as Satoshi Nakamoto, holds about 5% of the total supply; by comparison, 70% control by insiders would be significant.

Not only that, but the report said the WLFI token will also be non-transferable and locked indefinitely in a wallet or smart contract. The token could only be unlocked through protocol governance procedures, if ever, in a manner that complies with applicable law, per CoinDesk.

Trump’s crypto project linked to a former pick-up artist

The World Liberty Financial project will be built on the Ethereum-based lending platform, Aave. Donald Trump is listed as the project’s “Chief Crypto Advocate.” His sons, Eric Trump and Donald Trump Jr., will be involved as “Web3 Ambassadors.”

The operational side of the project is reportedly led by Zachary Folkman and Chase Herro. Folkman, serving as the head of operations, and Herro, overseeing data and strategies, previously co-founded Dough Finance, a blockchain app that was recently compromised in a hacking incident. Folkman’s background includes running a company named Date Hotter Girls LLC and creating YouTube seminars focused on how to pick up women.

Crypto experts oppose Trump’s project

This election year, Trump presented himself as a pro-crypto candidate who aims to establish the United States as the world’s crypto capital. However, there are questions about World Liberty Financial’s intentions: Is it truly focused on creating a new decentralized finance (DeFi) platform, or is it simply an attempt to capitalize on the Trump family’s reputation?

Even some of the former president’s industry supporters are cautioning that the plan could have negative repercussions. Nic Carter, a notable figure in the crypto industry and a Trump supporter, has voiced concerns about whether the crypto community can prevent the launch of this project.

He added in his tweet: “I think it genuinely damages trump’s electoral prospects, especially if it gets hacked (it’ll be the juiciest DeFi target ever and it’s forked from a protocol that itself was hacked). it’s also an obvious target for the SEC. at best it’s an unnecessary distraction, at worst it’s a huge embarrassment and source of (additional) legal trouble. so are we signing a petition or what?”

On X $TWTR, Richard Turrin, a financial technology expert, called the project a scam and asked what it offers that stablecoins such as Circle or Paxos lack.

With less than two months remaining before the U.S. presidential election, Donald Trump’s controversial crypto project has stirred unease within the cryptocurrency community. Many are questioning why, after successfully rallying support from crypto enthusiasts, Trump is pushing forward with a project mired in so many controversies.

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