The cryptocurrency startup spearheaded by Donald Trump’s sons, Donald Jr. and Eric Trump, has ignited skepticism and worry within the crypto sector, particularly among some of Trump’s most ardent supporters.
The Trump siblings have been promoting their forthcoming cryptocurrency venture, World Liberty Financial, over the past few weeks. However, reports from Politico suggest that the venture has encountered a string of setbacks, including hacking incidents targeting members of the Trump family and concerns about World Liberty’s close ties to a blockchain company that lost $2 million due to security vulnerabilities.
Nic Carter, a partner at crypto venture capital firm Castle Island Ventures and a Trump supporter, voiced his skepticism about the venture, stating, “This is a huge mistake. It seems like Trump’s inner circle is just cashing in on his recent endorsement of crypto in an unsophisticated manner, and frankly it appears as though they’re squandering a lot of the goodwill that’s been established with the industry so far.”
Earlier this week, accounts belonging to Trump’s daughter-in-law, Lara Trump, and daughter, Tiffany Trump, were compromised and used to advertise a cryptocurrency token allegedly affiliated with the Trump brothers’ startup. In response, World Liberty issued a warning to individuals against clicking on any suspicious links or purchasing tokens from these compromised profiles.
Zak Folkman, a representative for World Liberty, emphasized the company’s commitment to building a “world-class decentralized finance platform with the absolute best of the best in the industry.” He also confirmed that Lara and Tiffany Trump are not involved in the project and that the unauthorized social media posts and a fake Telegram channel were reported to the respective platforms.
Further concerns have arisen regarding the team behind World Liberty Financial. The company circulated a white paper outlining a borrowing and lending service similar to Dough Finance, a blockchain app that was hacked for $2 million in July. Notably, the four individuals who founded Dough Finance are listed as team members of World Liberty Financial.
Despite these issues, Donald Trump has pledged to make the United States the “crypto capital of the planet” if he wins the presidency again. This declaration has fueled concerns that his crypto policymaking could potentially benefit his family, further adding to the skepticism surrounding World Liberty Financial.
The Trump family’s entry into the crypto world has been met with a mixture of doubt and worry, particularly in light of the recent hacking incidents and the company’s connection to a previously compromised blockchain company. This venture could potentially impact the reputation and acceptance of cryptocurrency in the political sphere, especially if it is perceived as a way for the Trump family to profit from Donald Trump’s potential return to the presidency.
