In a major move that could change the landscape of decentralized finance (DeFi), the Trump family now controls at least 60% of World Liberty Financial (WLF), a growing blockchain platform. Here’s everything you need to know about the latest development and why it matters.
What Happened?
The Trump family has officially consolidated control over World Liberty Financial by creating a new holding company called WLF Holdco LLC, which owns 60% of the platform. This shift in power comes after the platform raised $250 million in a token sale earlier this year, taking its total fundraising to $550 million. The Trump family, through their company DT Marks DeFi, now controls the majority stake in the project, replacing the original co-founders, Zak Folkman and Chase Herro, as the “controlling parties.”
What Is World Liberty Financial?
World Liberty Financial is a DeFi platform focused on providing crypto lending and personal finance solutions. It launched before President Trump took office, and now the Trump family’s involvement in the project has made headlines. With a goal to build on the blockchain, World Liberty plans to offer a “lend and borrow” market and potentially a new USD1 stablecoin on Ethereum and Binance Smart Chain.
Why Should We Care?
The Trump family’s growing stake in World Liberty isn’t just a business move—it’s a sign of increasing political involvement in the world of cryptocurrencies. This shift has led to questions about how political figures might use crypto for fundraising or influence. Critics have already raised concerns that crypto token offerings like this one could potentially hide bribes or sway political support.
Here’s why it’s important for crypto enthusiasts:
- New Power Dynamics: With the Trump family in control, they stand to earn 60% of the operational profits from the platform once it launches. This could make them a major player in the DeFi world.
- Big Money Involved: The Trump family is set to receive a portion of the $550 million raised through token sales. On top of that, they can claim a 75% cut of the revenue from the token sales.
- What’s Coming: World Liberty’s upcoming DeFi features include crypto lending and borrowing, which could become big tools for people in the crypto world looking to manage their digital assets. Plus, the potential launch of USD1, a stablecoin, could reshape how crypto interacts with traditional finance.
Who Else Is Involved?
World Liberty’s token sales have already attracted 85,000 investors, with notable names like Tron founder Justin Sun getting involved, purchasing $75 million worth of WLFI tokens. Additionally, companies like Movement and Ondo Finance have partnered with World Liberty to expand its reach.
The Bigger Picture
This development raises new questions about the intersection of politics, business, and crypto. As the Trump family now holds such a large stake in a DeFi project, it could set a precedent for future political figures becoming involved in the crypto space. It’s also a reminder that DeFi is still evolving, with plenty of opportunities and risks ahead.
Keep an eye on World Liberty’s moves, as they could play a pivotal role in the future of crypto. For now, the Trump family’s control over this platform is an undeniable force in the DeFi world.
