Supporting the cryptocurrency industry, the Trump family backs a cryptocurrency project, with 60% of the tokens available for public purchase

Former U.S. President Trump made headlines again because of his stance on the cryptocurrency circle. A new cryptocurrency project, World Liberty Financial, supported by the Trump family, officially disclosed details on Monday.

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

Some media pointed out that for over a month, Trump and his family have been vigorously promoting World Liberty Financial with vague descriptions, promising that it will do many things at the same time. Wall Street News once mentioned that at the end of last month, Trump posted on X stating that his plan will "ensure that the United States becomes the global capital of cryptocurrencies," while also mentioning 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 of World Liberty Financial introduced in a live broadcast on X that the project will become a cryptocurrency banking platform, 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 token WLFI will be: 20% of the project tokens allocated to the founding team, including the Trump family, 17% of the tokens reserved for user rewards, and the remaining 63% of the tokens available for public purchase. There will be no presale of tokens.

Some media reported that the internal outline draft of the World Liberty Financial project previously exposed showed that the founders hold 70% of the shares, raising concerns that the project is just a plan to make quick money.

Previously, some comments believed that Trump's current attitude towards cryptocurrencies is a 180-degree turn from the past, as during his presidency, he considered cryptocurrencies to be a criminal scam. Now, his supportive stance towards the cryptocurrency industry has led some executives in the industry to stand by him, including prominent venture capitalists Marc Andreessen and Ben Horowitz.

At the Bitcoin 2024 conference at the end of July this year, Trump also made a series of eye-catching commitments to the crypto circle, such as making the U.S. the first country to classify Bitcoin as a strategic reserve asset; removing the current SEC chairman, who is seen as hostile to the cryptocurrency industry; establishing a Bitcoin and cryptocurrency presidential advisory committee; and encouraging power plants to strengthen electricity supply for Bitcoin mining In X's live broadcast on Monday, Trump also mentioned his transformation. He claimed that he was initially "not very interested" in cryptocurrency, but when his NFT series sales were paid for with cryptocurrency, "I felt my children opened my eyes immensely." He concluded his speech by saying, "Among the things we must do, cryptocurrency is one of them. Whether we like it or not, we must do it."

On Monday night, Trump's eldest son, Donald Trump Jr., expressed that the banking industry "has been politicized" after his father voiced his support, stating that DiFi "eliminates political factors."

DiFi is seen as a branch in the field of cryptocurrency. The traditional financial system architecture is centralized, while DiFi, as the name suggests, provides a decentralized option. It uses public blockchain networks for transactions, allowing so-called smart contracts to replace centralized service providers such as custodians, central clearinghouses, or trustees. 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 such projects will achieve financial democratization.

Some commentators suggest that Trump seems to be leveraging the attention gained from his flagship presidential campaign to drive new business ventures, and World Liberty Financial may fundamentally raise questions about his constitutionality. Because the U.S. Constitution stipulates that the President may not receive compensation from foreign governments without congressional approval, including money or valuable items. If the profits flowing into Trump's hands from this project come from constitutionally prohibited sources, it could raise constitutional issues