World Liberty Financial opened on Tuesday. The project has divided the DeFi community. Anthony Scaramucci labeled it a “scam”.
“Selfish.”
“A scam.”
“Good point.”
Reactions to the launch of World Liberty Financial, a crypto project backed by former US President Donald Trump and his sons, were mixed on Tuesday.
Although some fear that World Liberty Financial is a high-risk, low-reward endeavor — it could turn out to be a “distraction.”Big trouble” and a boondoggle, as crypto VC Nick Carter says — others see it as an opportunity for DeFi.
“[World Liberty Financial] Showcasing the incredible embrace of the industry,” said Robert Leshner, founder of decentralized lending platform Compound News.
“But there is also self-serving judgment with conflicts of interest that distract from the opportunity to create much-needed crypto policy and legislation.”
The U.S. election is less than three weeks away, and after Trump vowed to make the U.S. one way “Bitcoin is a superpower“The advent of World Liberty Financial has raised expectations of a new era for crypto.
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A rocky start
Instead, the project got off to a rocky start.
Its website crashed and was down for several hours on Tuesday, and only World Liberty Financial was sold $11 million In tokens on the first day of trading, it fell short of its total goal of selling $300 million worth of tokens.
Moreover, World Liberty Financial's decision to lock up the sale of tokens for 12 months probably dampened the action in the token.
Meanwhile, the goal of the project became clear. World Liberty Financial plans to raise a valuation of $1.5 billion through an initial sale of 20 billion tokens. The Block.
More than 100,000 accredited investors have signed up to buy WLFI tokens ahead of its launch, a spokesperson told X on Monday.
'surreal'
In any case, the venture has divided the crypto community.
“It's kind of surreal to see a prominent presidential candidate engaging with DeFi and promoting the project,” said Mike Silagadze, founder of Ether.Fi, the fourth largest DeFi protocol. “Overall I think it's a good thing.”
Vice President Kamala Harris leads Trump by 2% Five thirty eight National Election Poll. In contrast, a polymarket bet The Republican candidate has a nearly 17% lead over his Democratic opponent.
Platt argues that World Liberty Financial's launch is a net positive regardless of what happens with the project. “Adding people to DeFi and charging fees is bullish for DeFi,” he said.
World Liberty Financials”Gold paper” — a decidedly Trumpian spin on the crypto practice of releasing so-called white papers that blueprint new products — the project provides “information and access to third-party DeFi applications.”
There are noncustodial crypto wallets, lending pools, and lending and borrowing protocols. Aave, a lending protocol, is the first.
Not everyone is convinced. Anthony Scaramucci, the founder of investment firm Skybridge Capital, who served briefly as Trump's White House communications director and has since become a Trump critic, called the entire project a “scam.”
Scaramucci said it was a “money scam.” CoinDesk. “He can get money from some of his donors. It ends up in his pocket and he can fund things he needs to do for himself. I mean, it's a transparent scam and you should avoid it at all costs.
World Liberty Financial did not immediately return requests for comment.
Alex Gilbert is a DeFi correspondent. Got a tip? Email at [email protected].
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