World Liberty Financial Whitepaper Leaks

A leaked World Liberty Financial whitepaper has cast further doubt on the viability of the Trump DeFi project.

For weeks now, anticipation has been building around a mysterious Trump crypto project. Last week U.S. President and Republican presidential nominee Donald Trump announced the rebranding of the crypto project from “The DeFiant Ones” to “World Liberty Financial”.

The platform’s promotional materials claim it aims to “put the power of finance back in the hands of the people” and position itself as an antidote to a “rigged” traditional financial system.

However, a draft white paper obtained by CoinDesk has cast doubts on these assertions. According to the document, a significant 70% of the platform’s governance tokens, WLFI, are allocated to the founders, team, and service providers. This contrasts with other major blockchain projects such as Ethereum and Cardano, where insiders held far less at their launches. Ethereum’s insiders, for example, had about 16.6% of ether, while Cardano’s insiders retained 20% of ADA tokens. 

This high insider allocation has led some industry advisors to question the project’s intentions. CoinDesk’s report also links World Liberty Financial to individuals involved in a recently hacked crypto app, Dough Finance, further complicating the project’s outlook. The whitepaper suggests that the Trump crypto project will be built on Aave, an existing DeFi platform on Ethereum.

The proposed WLFI token will be non-transferable and locked indefinitely, a decision possibly aimed at avoiding securities law violations. The white paper specifies that every WLFI buyer will be screened, erroneously citing FinCen instead of the appropriate OFAC, for compliance with U.S. sanctions.

Despite distancing the project from any political affiliations in its white paper, the involvement of Trump and his family has led to concerns about the project’s credibility and potential legal implications. 

Nic Carter, a notable crypto figure and Trump supporter, expressed concerns on X, suggesting the project might negatively affect Trump’s political image and be a potential target for both hackers and regulatory scrutiny. If the project is hacked, or performs poorly, the potential blowback on both Trump and the crypto industry could be significant.

Source: X

It has since emerged that the X accounts of both Lara Trump and Tiffany Trump were hacked and used to promote a scam resembling World Liberty Financial, adding to the worry surrounding the project. If the Trumps themselves can’t secure social media accounts, their ability to run a DeFi platform does seem questionable, even with the best of intentions.

Source: X

World Liberty Financial claims to foster the mass adoption of stablecoins and decentralized finance, aiming to make the U.S. the “crypto capital of the planet.” However, the overwhelming insider control and ongoing controversies pose significant questions about its ability to fulfill these promises.

World Liberty Financial Responds

The team responded on X today, with a lengthy statement to address the criticisms, writing “Rumors are flying, but here’s the real story behind World Liberty Financial (WLFI). We know the magnitude of what we’re building and its potential impact on both crypto and our country, especially with the upcoming elections.

We’re not taking any chances. We’re working with the top security experts in the world—Zokyo, Fuzzland, PeckShield, BlockSecTeam, and more. Our code has been thoroughly reviewed by these industry leaders. We are utilizing best practices and making user security our top priority.

Let’s be clear: we’re not just another hostile fork of Aave. History shows those don’t work. We’re working with Aave, collaborating to create a platform that sets new standards and pushes all of DeFi forward. This is a partnership to build something truly transformative.

Our mission is crystal clear: Make crypto and America great by driving the mass adoption of stablecoins and decentralized finance. We believe that DeFi is the future, and we’re committed to making it accessible and secure for everyone.

Here’s why stablecoins matter: We want U.S.-pegged stablecoins to remain the world’s settlement layer for the next 100 years. The U.S. dollar has been the backbone of global finance for decades, but it’s now under attack by foreign nation-states.

By spreading U.S.-pegged stablecoins around the world, we ensure that the U.S. dollar’s dominance continues, securing America’s financial leadership and influence on the global stage.

To those who are skeptical or listening to the noise: our plan will speak for itself. The brightest minds in crypto are backing us, and what’s coming will make all doubters think twice.

Stay tuned. This is just the beginning. We’re here to win, and we’re here to change the game. Let’s make DeFi, and America, great again.”