Donald Trump’s launch of a family owned crypto crypto project, World Liberty Financial, has raised more questions than excitement. Billed as a groundbreaking decentralized finance (DeFi) project, WLF’s recent launch not only failed to meet expectations but also left many questions about the project’s viability.
With ties to previous blockchain failures, a disappointing launch event, and a restrictive governance model, the project is riddled with red flags that cannot be ignored. The official launch of World Liberty Financial, held on September 16 during a live-streamed audio event on X Spaces(formerly Twitter), was nothing short of a flop.
Hosted by Farokh Sarmad, co-founder of Rug Radio, the event drew an initial audience of over 170,000 listeners. However, as the conversation dragged on with non-crypto topics and minimal details about the project, the audience quickly dwindled.
When Trump himself finally mentioned WLF, the audience had already dropped by more than 50%. The much-hyped project reveal was vague. Donald Jr. mentioned a possible tie to real estate and WLFI, the governance token.
Even then, the details were limited. By the end of the event, over 70% of the initial audience had left. The project’s own Telegram channel didn’t post any updates, further adding to the confusion and disappointment.
Donald Trump’s WLFI Token: Governance Without Rewards
The centerpiece of WLF’s ecosystem is the WLFI token. According to Zak Folkman, the project’s operations lead, is strictly a governance token.
During the live stream, Folkman revealed that WLFI tokens will provide holders with the ability to make proposals. And vote on matters related to the platform.
However, the token offers no economic benefits such as dividends. It’s non-transferable, meaning it can’t be traded on secondary markets.
Folkman emphasized that 63% of WLFI’s supply will be sold exclusively to accredited investors in the U.S., with 17% set aside for user rewards and 20% allocated to the project’s team.
This decision, while likely motivated by regulatory concerns, severely limits the token’s accessibility and appeal. With no direct financial incentive tied to holding WLFI, it raises the question: What will drive user engagement?
Troubling Ties To Hacked Dough Finance
Adding to the skepticism surrounding World Liberty Financial are its connections to Dough Finance, a DeFi project that was hacked for $1.8 million in a flash loan attack in mid-2023. Several key figures behind Dough are now part of WLF’s leadership team, including Zak Folkman, Chase Herro, and Octavian Lojnita.
Their involvement, especially given Dough Finance’s past security vulnerabilities, raises concerns about the integrity and safety of the WLF platform.
There’s no concrete evidence that WLF contains the same code vulnerabilities that led to Dough’s downfall. However, the shared team members create unease.
The fact that an early iteration of World Liberty Financial reportedly lifted code from Dough Finance only adds fuel to the fire, casting a shadow over the project’s security.
World Liberty Finance Team
The project’s leadership also raises eyebrows. Former president Trump’s role as “Chief Crypto Advocate” seems largely symbolic, as do the roles of Eric Trump and Donald Jr., who are listed as “Web3 Ambassadors.”
Even Barron Trump, at just 18 years old, is branded a “DeFi Visionary.” While these titles generate media buzz, they don’t instill confidence in the project’s ability to deliver on its promises.
More troubling is the involvement of individuals like Chase Herro as revealed by Bloomberg, whose previous ventures include a boat named “Clickbait” and a platform called Subify, which aims to compete with Patreon and OnlyFans by offering censorship-free membership.
None of these credentials inspire confidence in a project that seeks to play a significant role in the financial markets. Folkman, the founder of Date Hotter Girls LLC, further undermines the project’s seriousness.
Moreover, other listed team members, such as Steve Witkoff and his son Zach, lack any significant crypto experience, leaving investors wondering if the project is more of a publicity stunt than a serious blockchain endeavor.
What Next for Donald Trump’s Crypto Project?
From a botched launch event to questionable leadership and ties to failed blockchain projects, World Liberty Financial has a shaky foundation. The restrictive and non-transferable WLFI token offers little incentive for broader community engagement. The project’s connection to Dough Finance only heightens concerns.
