Would You Buy into Trump’s World Liberty Financial New Crypto Venture

Former U.S. President Donald Trump likes making headlines, and this time it’s not for politics, but for a brand-new cryptocurrency venture called World Liberty Financial. Announced on a livestream Monday, the business is rolling out with little clarity about its goals, but plenty of questions about potential conflicts of interest, especially as Trump gears up for the 2024 election.

The Cryptocurrency Pivot Continues

Trump’s cryptocurrency relationship has recently taken a 180-degree turn. Back in 2019, he was an outspoken critic, tweeting that cryptocurrencies were “not money” and based on “thin air.” But now, Trump is now positioning himself as a “crypto president,” a transformation that has left many observers scratching their heads.

But here’s the kicker: despite this shift in tone, Trump remains vague on the details of his new venture. World Liberty Financial, as of now, appears to be a cryptocurrency exchange, but no firm launch date has been set. On Monday’s livestream, Trump left much of the explaining to two crypto entrepreneurs, Chase Herro and Zachary Folkman. The pair have little experience running high-profile businesses, and their involvement has only fueled concerns about the venture’s legitimacy and Trump’s own stake in the enterprise.

The Role of Trump’s Family

It wouldn’t be a Trump business venture without his family in tow. Donald Trump Jr. and Eric Trump are both heavily involved and even Trump’s youngest son, 18-year-old Barron, is listed as the project’s “DeFi visionary” (a title that raises more questions than it answers). The Trump family’s deep ties to the project have sparked concerns over conflicts of interest, especially considering Trump’s promise to implement policies that could benefit the crypto industry if he wins the 2024 election.

Given Trump’s long history of mixing personal business interests with politics, critics are watching this new venture closely. Danielle Brian, Executive Director of the Project on Government Oversight, notes that should Trump be re-elected, his involvement in World Liberty Financial would present “serious conflicts of interest.” After all, a sitting president with a direct financial interest in a cryptocurrency business could theoretically push regulatory agencies to favor his own company. That’s not just an ethical gray area—it’s a potential legal minefield.

A Venture Riddled With Risk

The cryptocurrency market, as we all know, is volatile. Investors can make a killing, but they can just as easily lose everything overnight. Trump’s new platform, World Liberty Financial, aims to introduce “everyday Americans” to this high-stakes world, according to Herro. On paper, the project sounds like it has potential, but it’s already facing scrutiny from industry insiders.

While Herro and Folkman tout the benefits of cryptocurrency, some people are wondering if Trump’s name is being used more for marketing than for actual substance. One source described World Liberty Financial as a platform similar to Instadapp, a service that lets users manage their investments across multiple crypto platforms. However, the project’s white paper (which was quietly released to a few insiders) suggests it’s more about promoting stablecoins—a type of cryptocurrency designed to maintain a consistent value of $1.

The lack of transparency has crypto veterans like Gareth Rhodes, an attorney at Pacific Street, on edge. He’s concerned that World Liberty Financial could end up being just another speculative venture that capitalizes on Trump’s celebrity rather than offering a real, lasting contribution to the cryptocurrency landscape.

Timing and Legal Questions

Launching a new business just weeks before an election is unusual enough. But launching a cryptocurrency exchange while simultaneously running for president is almost unheard of. Critics are concerned about the ethics of such a move, especially given that Trump has already promised to fire SEC Chair Gary Gensler if he wins in 2024. Gensler has been a vocal critic of cryptocurrencies, labeling many of them unregistered securities.

The timing of World Liberty Financial’s debut, just as Trump’s presidential campaign hits its stride, has raised eyebrows. No major party candidate has ever launched a business venture this close to an election, much less one that could so clearly benefit from the candidate’s potential executive powers. The possibility of Trump using his presidency to favor his own business ventures isn’t just speculative; it’s a scenario that experts like Yesha Yadav, a professor of financial regulation at Vanderbilt University, say needs to be taken seriously.

“There’s little precedent for this,” Yadav says, warning that such ventures are ripe for ethical violations. The fact that Trump and his sons could potentially influence regulatory policy while running a crypto business is a glaring conflict of interest, one that voters and investors alike need to be wary of.

What’s Next for World Liberty Financial?

So, where does World Liberty Financial go from here? Honestly, it’s still anyone’s guess. While Trump has thrown his weight behind the project, specifics remain scarce. The company has yet to launch officially, and details on how the platform will operate are still murky at best. However, it’s clear that Trump sees cryptocurrency as a key part of his 2024 campaign platform, which means we’ll likely hear more in the coming months.