Former President Donald J. Trump’s involvement in World Liberty Financial has raised concerns about conflicts of interest and alarmed some of his most vocal supporters in the industry.Credit…Kenny Holston/The New York Times
Trump Rolls Out His New Cryptocurrency Business
Donald Trump has officially launched a new venture, World Liberty Financial, on Monday, September 16, 2024. This marks his entry into the cryptocurrency market, an area he had once criticized. The former president appeared in a livestream, accompanied by his two eldest sons, Donald Trump Jr. and Eric Trump, and two crypto entrepreneurs, to announce the launch. The timing of this business move, just weeks before the election, has raised eyebrows across the political and business worlds.
Trump, who had previously denounced Bitcoin as a “scam,” has now embraced the crypto space. During the livestream, he acknowledged the need to step into the cryptocurrency world, stating, “Whether we like it or not, I have to do it.” He didn’t go into many details about the specifics of World Liberty Financial but left that part to his collaborators, Chase Herro and Zachary Folkman. Both entrepreneurs, however, are relatively unknown in high-profile business circles, which has led to some skepticism about the project’s potential.
Herro, who described himself as “the dirtbag of the internet,” and Folkman, who once taught classes on how to seduce women, are leading the venture. Their backgrounds have stirred concern, particularly given their lack of experience in large-scale, high-visibility projects like this one.
Trump’s move into cryptocurrency is highly unusual, especially so close to an election. Many are questioning whether it might create conflicts of interest, should he win. Some of Trump’s supporters in the crypto world are already raising concerns. For example, Danielle Brian, executive director of the Project on Government Oversight, pointed out that Trump’s involvement in the venture could allow him to influence regulatory bodies like the Securities and Exchange Commission (SEC) if he is re-elected. The SEC has been cracking down on unregistered securities, including most cryptocurrencies, which has already made Trump’s involvement even more controversial.
World Liberty Financial, although heavily promoted by Trump since August, remains somewhat of a mystery. There is no official launch date, and key details about the platform’s purpose are unclear. However, the project’s white paper, which was reviewed by The New York Times, revealed that it would feature a new cryptocurrency called $WLFI, to be sold to the public. The goal of the venture, according to its official X and Telegram accounts, is to drive mass adoption of stablecoins, a type of cryptocurrency that aims to maintain a steady value.
Trump’s family plays a significant role in World Liberty Financial. While Donald Trump is the “chief crypto advocate,” his 18-year-old son, Barron Trump, is labeled the “DeFi visionary,” a reference to decentralized finance. Eric Trump and Donald Trump Jr. are both listed as “web3 ambassadors” in the project’s team.
The fact that Barron Trump, who did not participate in the livestream, is involved in this venture is notable. According to sources familiar with the planning, one of the main figures behind World Liberty Financial, real estate mogul Steve Witkoff, helped spearhead the project to give Barron some entrepreneurial experience. Trump himself spoke highly of Barron’s crypto knowledge, mentioning that his youngest son had “four wallets or something” and was deeply involved in the cryptocurrency space.
Although Trump has presented the venture as a way to reshape the financial system, some have questioned its legitimacy. Behind the scenes, Herro and Folkman, who have homes in Puerto Rico, have a history of working together on various projects, mostly in areas like internet advertising and media. Herro, in particular, has described stablecoins as “vivacious and insane,” going as far as calling them “borderline a Ponzi scheme” during a past seminar.
This new venture has already caused a stir, with both skepticism and excitement swirling around Trump’s latest business move. Trump has a history of mixing politics with his business interests, and World Liberty Financial might be the latest chapter in that saga. Whether the former president’s dive into cryptocurrency will succeed remains to be seen, but for now, it’s clear that Trump is once again making headlines with a controversial, attention-grabbing project.
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