Key facts: Trump's new platform may walk a tightrope, analyst warns. The launch of his DeFi platform, moves Trump away from Bitcoin principles. Presidential candidate Donald Trump will launch a new cryptocurrency platform today called World Liberty Financial that will be under the control of his sons Donald Trump Jr. and Eric Trump. The Republican candidate for the US presidency plans to speak about the new company from his Mar-a-Lago resort tonight. The Trumps have been promoting the project on social media, as «the future of cryptocurrencies.» «We are embracing The future with cryptocurrencies and leaving the big banks behind «slow and outdated,» Trump said in a video posted Thursday at X from Mar-a-Lago. The Trumps' cryptocurrency plans coincide with the former president's campaign promise to turn the United States into a the “crypto capital of the planet”. But the initiative also raises concerns about how Donald Trump might use federal resources to promote a personal financial project. Because the Trumps have not released details about World Liberty Financial, little is known about how the platform will work. However, according to the project's white paper obtained by CoinDesk, 70% of the company's tokens will be reserved for members of the initiative of a decentralized finance (DeFi) platform, while the remaining 30% will be distributed through a public sale. A portion of those profits will go to a founding team. This was discussed by Bitcoin ecosystem analyst Simon Dixon, who in episode 55 of his YouTube space BitcoinHardTalk was cautious about the project. He believes that World Liberty Financial has the potential to be “a disruptive movement that shakes the system if properly implemented, although the possibility that it is a time bomb cannot be ignored.” Dixon, who has an extensive background in the field of Bitcoin and macroeconomics, focuses on the fact that 70% of pre-mined tokens are reserved for insiders, which he considers a high risk of regulatory scrutiny. Regarding this, he is struck by the similarity it has with the Ripple case before the SEC, something he describes as “disturbing.” It is due to the fact that the platform could face the same difficulties as other projectsthat they did not comply with the regulations, which could result in irreparable damage to Trump's political image.
World Liberty Financial, a high risk for Trump
Analyst Simon Dixon questions the timing of this launch, suggesting it may alienate many in the Bitcoin community, which has historically been averse to centralized control. Analyst Simon Dixon questions the timing of this launch, suggesting it may alienate many in the Bitcoin community, which has historically been averse to centralized control. “By introducing his own token, Trump could be seen as yet another opportunist looking to capitalize on the decentralized finance craze,” Dixon says.
Analyst Simon Dixon has expressed caution about presidential candidate Donald Trump's DeFi project. From what the analyst notes, it is clear that the success of World Liberty Financial could thus become a high-stakes issue for Trump's presidential campaign. If the token crashes, it could be used as a political weapon against him. A similar case occurred with Facebook's Libra, which was aborted before it took off due to regulatory pressure. Dixon then argues that Bitcoin remains the only truly decentralized financial system and secure, capable of empowering individuals and protecting their wealth in times of uncertainty. So, one might wonder why Trump is not relying on the currency created by Satoshi Nakamoto to maintain the focus on decentralized solutions? This as opposed to platforms that could become centralized innovations with significant risks. Additionally, Dixon warns that in a tense geopolitical context, where relations between the United States, Russia and the United Kingdom continue to deteriorate, the launch of World Liberty Financial could be seen as both a risky strategy by Trump. It can also be seen as a distraction from larger challenges, both in the financial and political realms. And as Trump launches his new platform, the question remains: will World Liberty Financial be a golden opportunity or just another empty promise in the turbulent world of cryptoassets? The answer could lie behind his Ordinals project or the presidential candidate's NFTs, which are not freely transferable or tradable until December of this year. They can only be purchased directly from the official trading card site, for USD 99, as specified. All of this is very contrary to the principles that Bitcoin defends, very focused on Privacy and sovereignty, which seem to be rights that there is not much interest in defending in the United Statescurrently.