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September 18, 2024 - 9:30pm
A few years ago, Donald Trump called cryptocurrency “a scam against the dollar”, but now he seems to have changed his tune. On Monday, speaking on an X livestream just after he was the target of a second assassination attempt in two months , he launched a new cryptocurrency venture called World Liberty Financial.
But it shouldn’t come as a surprise, as there have been signs of Trump making a play for the crypto vote during this election cycle. In the last few months, the 78-year-old has launched several NFT collections of unique digital art, given a well-received speech at the Bitcoin Conference in Nashville, promised a national “strategic reserve” for the cryptocurrency, and pledged to mine every remaining Bitcoin in the US.
World Liberty Financial is a decentralised finance (DeFi) company, started by Trump’s sons Donald Jr, Eric, Barron (the “DeFI Visionary”), and some collaborators. Donald Jr said DeFi is “what our Founding Fathers intended for the country”, channelling crypto’s promise to democratise finance and reduce the role of government in the economy. The crypto-schmoozing has certainly paid off: at the Nashville conference alone, Trump raised $25 million. Interestingly, crypto companies have contributed half of all corporate political spending in 2024.
But World Liberty Financial is a gamble for Trump’s campaign. DeFi ventures, like New York restaurants, are high-risk, with a high chance of failure. DeFi projects frequently crash, are hacked, or simply fade into irrelevance. And the company’s founders, Zak Folkman and Chase Herro, are hardly well known in the crypto industry, with no notable successes before now. The duo’s previous venture gained no traction and was hacked for $2 million over the summer.
In time, World Liberty Financial could communicate the lofty notion that crypto holds the promise of global financial liberty. Or, it could be a perfect example of why many people still distrust a digital currency not backed up by bullion or Government bonds. Much of the crypto industry supports Trump, but even some notable backers of his are wary of World Liberty Financial. It’s both a business and policy statement — critics, journalists and everyone who hates Trump will take a potshot at it. If ever there was a DeFi project hackers might hack, it’s this one.
Following the infamous scandals in the crypto world, most notably the fraudulent FTX exchange run by Sam Bankman-Fried, the Biden-Harris administration turned openly hostile to crypto. It began to limit its access to banking services while standing by as Securities and Exchange Commission Chair Gary Gensler dropped the cudgel again and again on the industry. While rival nations have created guidelines for honest innovation, US officials have largely sat on their hands, providing little clarity as to what is and isn’t permissible.
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Subscribe“That a presidential candidate is launching a crypto company is certainly a sign of our brave new world.” Huh? Translate this as “That Donald Trump is launching a crypto company is certainly a sign of our brave new world.” This is such a laughable statement.
The writer says that Trump “launched” the company, and that his sons “started” it.
This is misleading, at least according to what’s reported in the Australian press today (Sydney Morning Herald, 19 September): “A disclaimer at the end of the document [a white paper issued by the company] said the platform wasn’t owned or managed by Donald Trump, the Trump Organisation or his family, though family members might receive compensation.”
The document quoted lists Trump as “chief crypto advocate,” Barron as “DeFi visionary” and Donald Junior and Eric as “web3ambassadors[s].”
In other words, the Trumps are shills for this thing, without risk or responsibility. I’ll be leaving my money in the biscuit tin (though I might change my screen name here to “UnHerd Visionary”).
Risky compared to what, exactly?
Not surprising that Trump would seek to undermine his own country’s currency by going crypto, he also wants to influence the federal reserve policies, great combination if God forbid he becomes president. Opportunist and treacherous as well. The freakshow continues