Despite Donald Trump's victory in the U.S. presidential election, his crypto project World Liberty Financial is facing challenges.
World Liberty Financial's DeFi Ambitions
World Liberty Financial aims to be a big player in the DeFi market. According to its 'gold paper,' the project intends to democratize access to financial assets and strengthen the global status of the U.S. dollar. The platform will enable users to save and borrow money, primarily in U.S. dollar-based stablecoins like Tether (USDT) and USD Coin (USDC). It also plans to issue its own stablecoin for use on the platform.
Current Achievements and Setbacks
So far, World Liberty Financial has sold 1.08 billion tokens, raising $16.2 million, which is below the reduced target of $30 million. This is notable as less prominent tokens like Poodlana and Bitcoin Dogs have raised more funds in shorter timeframes.
WLFI Red Flags
A likely reason for WLFI's lackluster performance includes several red flags. As detailed in the gold paper, token holders are expected to benefit solely from WLFI price movements without any profit-sharing rights. Seventy-five percent of net protocol revenues will go to DT Marks DEFI LLC, controlled by Trump, while the remainder goes to WC Digital Fi. Furthermore, the project team primarily includes only Chase Herro and Zak Folkman, previously associated with a failed DeFi protocol, Dough Financial, along with Trump's sons, Eric, Donald Jr., and Barron.
World Liberty Financial is attempting to strengthen its position in the DeFi market but is facing several challenges and raising concerns among experts.
