Since the cryptocurrency ecosystem is steadily growing, we’re used to seeing celebrities and popular figures enter the industry. For example, Elon Musk has made a considerable contribution to the price of Dogecoin after two of his posts about the subject boosted prices in a matter of hours.
But maybe no one would expect the US president to use cryptocurrency as a way to attract more people to vote for them, which is what it seems like Donald Trump has done. The president used to think cryptocurrency was nothing but a scam. However, things changed quite fast as the election was getting closer, as he began entering the industry by supporting projects and addressing annual gatherings on Bitcoin, for example. At the same time, Trump’s investments include a considerable amount of Ethereum, so he can be considered a whale, meaning he could trigger a change in the market if he moves his assets based on how the Ethereum price USD moves.
That’s not all. According to the latest statements, Trump is starting his own crypto business, with support from Justin Sun, who bought $30 million worth of tokens. Here’s what it’s about.
The growing World Liberty Financial project
The projects’ details were kept secret from the media, but recently, Trump and his son offered more insight into their business, World Liberty Financial. The company seems to help those with limited access to products and services from traditional banks. Trump stated that the project is still young and developing but believes in its potential, but you can already purchase the $WLFI token and contribute to the Trump DeFi project. The token offers benefits like:
- Equal voting power for fair platform changes;
- Proposal creation to influence development;
- Shaping DeFi’s future;
The announcement comes after he promised investors new regulations and policies to benefit their digital currency trading. He also showed his support for Bitcoin, advertising digital coins with him dancing and holding Bitcoins in an online video.
Trump has some experience within the crypto world
While the World Liberty Financial plan is still developing, Donald Trump has worked with crypto-based assets before, so this is not his first rodeo. In 2023, Trump made a deal with a decentralized business to sell NFTs with his Georgia mugshot, for which buyers would also receive pieces from the suit and tie worn at that moment for the price of $4,653.
Therefore, the current project might be the perfect opportunity for the president to showcase his support for crypto. He also divides a team, also known as the Trumps, who will receive 20% of the project’s tokens, 17% will be used for rewards, and the rest of 63% coins will be available for public purchases.
In addition, the team shared that no pre-sales or early buy-ins will be offered, which is usually common in crypto projects. Other members of the project include Chase Herro, Zach Witkoff, and Corey Caplan.
Trump was amazed by decentralization
Amid one of these interviews, Trump revealed how his children introduced him to decentralized finance, which would help those who can’t receive financial benefits in our centralized system since there would be no single authority to decide who can or cannot receive credit, for example.
Although the Trump family won’t be the one to manage or operate the platform for the World Liberty Financial project, the president has shown great interest in decentralization and DeFi, especially since it opens up the country to numerous growth opportunities.
However, experts found several issues with the project, including the requirements for it to be legal. Considering that the SEC has barely passed on Bitcoin and Ethereum, this project might need some time to be established until it proves trust and credibility.
Is decentralized finance safe?
Decentralized finance (DeFi) relies on peer-to-peer transactions through which users can freely exchange assets and earn income. The technology used in these ecosystems involves security protocols, advanced software, and hardware superior to our traditional systems, which offer top-notch security and efficiency.
DeFi uses blockchain and decentralized applications to give users the power to control their assets. Therefore, it empowers investors and regular people with accessibility, low fees, and transparency. For now, examples of DeFi include decentralized exchanges, prediction markets, and NFTs.
However, with proper implementation and enough time for adoption, DeFi can become the leading technology in insurance, payment solutions, and risk management tools. Of course, this cannot happen if smart contract vulnerabilities find no solution.
What’s the deal with smart contracts and their risks?
Smart contracts are some of the most important technologies in the crypto industry, as they power most transactions and actions on blockchains. Smart blockchains are self-executing contracts that power fast agreements between global users with low fees.
Smart contracts are efficient, accurate, and immutable, which makes them the ideal tool for developing anything on the blockchain. However, since they rely on human development, smart contracts are prone to errors that accumulate and lead to vulnerabilities.
There are numerous examples of vulnerability that can be solved more or less, but a few are irretrievable. Therefore, if DeFi would be introduced into the real world, it would be rather difficult to solve some of these problems.
Are we ready to adopt decentralization?
Although crypto enthusiasts like Donald Trump are ready to accept centralization, blockchain, and crypto, it might take some time for the world to adopt and adapt these technologies. Introducing them would require a massive change in internet infrastructure, which could lead to major disruptions.
At the same time, the knowledge gap would need to be covered pretty quickly for societies to use and benefit from these technologies as they do with centralized products and services. Therefore, even if we begin experimenting with decentralization now, we still have to wait until it’s settled and our systems are capable of sustaining it.
What do you think about Trump’s mitigation for decentralization and crypto?
President Donald Trump is advocating for the adoption of cryptocurrencies like Bitcoin and starting his own decentralized business as part of his election strategy. His World Liberty Financial project is developing and will offer those who have no access to financial resources a chance to increase their income.
