Criticism of Donald Trump and his DeFi project on the rise

Former US president and current presidential candidate Donald Trump has caused quite a stir in recent months with his positive comments about Bitcoin and the crypto market. Although opinions on him differed and still differ widely, it certainly seemed as if Trump's stance on BTC and the like had also won him a few additional sympathy points in the ranks of the Bitcoin community. However, with some questionable actions, such as the recent launch of his own DeFi platform, the aim and purpose of which remain unclear, he seems to have largely lost those sympathies again. Since yesterday, accredited investors in the US and all non-Americans have been able to register for the platform.

While Trump was still rather critical of Bitcoin and other digital assets during his term as US president, he has made a surprising turnaround in recent months. He has spoken positively about Bitcoin and the crypto market, which many observers saw as an attempt to reach out to the growing number of crypto investors and enthusiasts and thus gain votes for the upcoming US election. He was even a speaker at the world's largest Bitcoin conference in Nashville, addressed the topic at several election events and loudly postulated that he wanted to make the USA a "Bitcoin superpower" .

However, the ex-president has also attracted criticism in the past with questionable actions such as the sale of his own NFT collection or overpriced "Crypto President" shoes. However, the latest developments surrounding the announcement of his own dubious DeFi project have been met with particularly great skepticism - especially as it has not yet been communicated exactly what the purpose of this project called "World Liberty Financial" is supposed to be. Critics describe the project as another step by Trump to make his mark in the crypto sector, but without offering a clear vision or added value. While some Trump supporters still believe it is a serious attempt to establish himself in the crypto industry, others are completely sure that it is just about lining his own pockets.

So far, little is known about Trump's project. As mentioned above, the company opened its whitelist registration for "accredited investors" in the US and for non-US interested parties yesterday. In an official message in its Telegram group, World Liberty Financial emphasizes that although it is currently forced to make this separation due to US regulation, it plans to provide access to non-accredited US citizens in the long term. The project advertises with the promise of making "financial freedom" accessible to all and bringing about a revolution in the financial sector. However, it is noticeable that the communication to date is very reminiscent of the typical "blockchain", "FinTech" and "DeFi" promises that have been made for years by questionable or fraudulent projects in the crypto market. Despite the ambitious announcements, it remains unclear whether and what specific products or services the project will offer and how it actually intends to implement the promised "financial revolution".

Trump has been sharply criticized for "World Liberty", particularly on social media. Numerous voices from the Bitcoin and crypto community refer to him as a "grifter" - a term used in connection with people who try to capitalize on shady deals. The fact that concrete information about the DeFi project is still lacking reinforces these critical voices. Here is a small selection:

Study Bitcoin. Stop promoting weird scams to raise money. Do better. Be better.
_{Gabor Gubacs - well-known investor}

How much of a fraud do you have to be if you can't even hit pause a few weeks before an election?
_{Troy Cross - author, philosopher, bitcoiner}

One 𝕏 user criticized the project in particular detail, listing and summarizing the numerous "red flags" associated with the project. The project would do more harm than good to the US economy, he explained:

• Centralized control disguised as decentralization
  Although the project purports to support decentralized finance, insiders hold up to 70% of the governance tokens (WLFI). This level of control completely contradicts the concept of decentralization and points to manipulation.
• Opaque, anonymous operations
  The project's website is registered anonymously and uses a service that has links to Russian cybercriminals. This complete lack of transparency raises questions about the legitimacy of the project and screams fraud.
• Significant security vulnerabilities
  World Liberty Financial's code bears frightening similarities to "Dough Finance", a platform that was the victim of a $2.1 million hack. Even more worrying is that several World Liberty Financial team members were directly involved in the Dough Finance project during this hack.
• A magnet for scammers
  The project's marketing efforts have already been abused by scammers who misled thousands of people with fake sweepstakes. Worse still, even Donald Trump's social media accounts have been hacked to promote fraudulent projects linked to World Liberty Financial. If those responsible can't even protect their own brand, how will they protect investors?
• Unavoidable legal problems
  The project is a target for the US Securities and Exchange Commission (SEC). The WLFI token, which is neither transferable nor time-limited, is treading on thin regulatory ice. Legal action seems not only possible, but likely.
• No real added value
  The project offers nothing new - it does nothing that established projects such as Circle or Paxos do not already do better. The vague mission to promote stablecoins does nothing to strengthen the US dollar.

In summary, World Liberty Financial is a risky, dubious venture that holds more danger than promise. The mix of security risks, hidden agendas and questionable marketing strategies make it look more like a scam than a credible financial project.
_{𝕏-User @4HumanUnity}

The numerous warning signals surrounding "World Liberty Financial" inevitably raise the question of what role Donald Trump is actually playing in this: Is he himself a victim being taken advantage of by experienced fraudsters, or is he fully aware of the dubious nature of the project and is deliberately using it for his own ends?

On the one hand, it would not be the first time that Trump, as a businessman, has been involved in questionable projects that were later interpreted as dubious or fraudulent. Examples such as "Trump University" or the numerous bankruptcies of his casinos show that he has often invested in high-risk ventures without necessarily understanding the consequences or the machinations behind the scenes. It is therefore conceivable that Trump actually believes in the promises of the project and is being instrumentalized by the people behind World Liberty Financial. In this scenario, he himself would be a victim who has been blinded by the hype surrounding DeFi, blockchain and cryptocurrencies and naively believes in the supposed benefits of the project - especially as he has often shown limited expertise in financial and technological matters in the past.

On the other hand, there are certainly indications that Trump may be aware of the dubious nature of the project. The fact that the project is structured in a similar style to previous questionable initiatives he has promoted suggests that he is well aware of the risks and potential legal consequences. It cannot be ruled out that with this project he is trying to profit from the current hype surrounding his person in connection with the crypto market, regardless of whether the project is reputable or not. The centralized control over the majority of the tokens, the lack of transparency in the registration process and the possible connection to people who have been involved in previous fraudulent crypto activities suggest that those involved have no real interest in creating a sustainable and legitimate DeFi platform.

Regardless of whether Trump is knowingly participating in a scam or is himself a victim of his lack of expertise, it remains that his name and involvement lends the project an apparent credibility that could ultimately lead to countless investors being deceived and financially harmed. If he is indeed naïve enough to believe that World Liberty Financial can bring about positive change, this once again demonstrates his lack of foresight and tendency to be blinded by short-term trends. If, on the other hand, he is knowingly part of a potential scam, this would confirm his already dubious business conduct and reveal his lack of responsibility towards the people who trust him.

In any case, World Liberty Financial remains a project to be viewed with extreme caution, and it once again raises the question of the extent to which Donald Trump is willing to use his celebrity - whether out of naivety or with full calculation - to promote a project that could do more harm than good. Then it doesn't matter whether he wants to make the USA a "Bitcoin superpower" or "mine all Bitcoins in the USA". Overall, he would probably do more harm than good.