Interest in World Liberty Financial (WLF), a new crypto lending platform endorsed by Donald Trump and his sons, isn’t quite the fairy tale it promised to be. Marketed as a way to “put the power of finance back in the hands of the people,” the project is raising eyebrows due to some eyebrow-raising details about token allocations. It turns out, the biggest winners here might be the insiders, not the public.
Insiders Claim a Whopping 70% of Tokens
Here’s the kicker: a draft white paper obtained by CoinDesk reveals that 70% of World Liberty Financial’s WLFI tokens are set to be held by the project’s founders, team, and service providers. For context, this is far more than typical for crypto projects. For example, the Ethereum Foundation and its early contributors collectively held only 16.6% of Ether (ETH-USD) when it launched. Bitcoin’s (BTC-USD) mysterious creator, Satoshi Nakamoto, is estimated to hold around 5% of Bitcoin’s total supply.
A source who advises early-stage crypto projects didn’t hold back when asked by CoinDesk if 70% was a lot, responding, “LMAO. Nice joke, ser.” While some of the remaining 30% of WLFI tokens will be sold to the public, some proceeds will also flow back to insiders, raising questions about the platform’s real intentions.
Skepticism Grows Around World Liberty Financial
These revelations have stirred up quite the storm in the crypto world, with some questioning whether this Trump-backed project is more about cashing in on fame than making good on its promises. Nic Carter, a prominent crypto figure and Trump supporter, voiced his concerns on X (formerly Twitter), asking if “crypto Twitter” could do something to stop the launch of the token, as reported by CoinDesk. “I think it genuinely damages Trump’s electoral prospects, especially if it gets hacked,” he said, suggesting the project could backfire if things go south.
Carter’s not alone in his doubts. The project’s plan to limit WLFI token transfers until they comply with legal guidelines is also being viewed with suspicion. A statement from World Liberty Financial shared with CoinDesk says the information circulating is not finalized, but this hasn’t stopped the skepticism from mounting.
Could This Be Just Another Crypto Cash Grab?
The big question now is whether World Liberty Financial is genuinely trying to shake up the traditional financial system, as it claims, or if it’s simply another cash grab riding on the Trump name. According to a World Liberty Financial post “The brightest minds in crypto are backing us,” but so far, the numbers paint a different story. Insiders holding most of the tokens could limit how much of the project’s value actually trickles down to the everyday investor.
Future Forward PAC Accepts Crypto Donations
In a related crypto and political twist, a spokesperson from Coinbase clarified that Vice President Kamala Harris is not directly accepting crypto donations. Instead, a PAC supporting her, Future Forward USA, has started taking crypto via Coinbase Commerce. This move, as subtle as it might be, could indicate a gradual warming up to crypto among Democrats, who have generally been more cautious about the sector.
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