Business
Donald Trump Launches Cryptocurrency Project World Liberty Financial
Donald Trump unveils his latest venture, World Liberty Financial, a groundbreaking cryptocurrency project aimed at revolutionizing the financial landscape. Explore how this initiative could reshape digital currency and empower users worldwide.
Donald Trump Ventures into Cryptocurrency with World Liberty Financial
Donald Trump, along with his sons, has been hinting at an upcoming cryptocurrency project for weeks, generating curiosity among enthusiasts and investors alike. However, specific details regarding the initiative have remained sparse in public discussions. Behind the scenes, the former U.S. president’s close associates have been actively promoting a white paper for a venture named World Liberty Financial, which CoinDesk has managed to obtain excerpts from.
The document and additional reports suggest that the project aims to create a borrowing and lending service that bears a striking resemblance to Dough Finance, a recently compromised blockchain application developed by a team that includes several members affiliated with World Liberty Financial. The project is notably being led by Trump’s three sons, including 18-year-old Barron, who is branded as the project’s “DeFi visionary.” The team also comprises financiers and e-commerce influencers.
A source familiar with the plans revealed that the project will introduce a new cryptocurrency known as WLFI, which is to be a non-transferable governance token. This transfer restriction could hinder speculative trading, adding a layer of complexity to the asset’s circulation.
The white paper emphasizes that World Liberty Financial “highlights the power of blockchain in an accessible way.” While the application is not yet fully operational, an examination of a previously deleted codebase on GitHub indicates that the early stages of the project may have utilized code directly sourced from Dough Finance, which recently suffered a hack resulting in a loss of $2 million. It remains unverified whether subsequent versions of the application still incorporate this earlier code, and there is no evidence suggesting that any known vulnerabilities from Dough Finance have been carried over into the new project’s framework.
Key figures in the World Liberty Financial initiative, Zachary Folkman and Chase Herro, are identified in the white paper as the head of operations and the data and strategies lead, respectively. Reports indicate that both were integral in the creation of Dough Finance, with Herro previously linking to Dough Finance’s Telegram group in his bio on the messaging platform. Additionally, Octavian Lojnita, the lead on smart contracts for the project, also has a background with Dough Finance, as shown in his online resume. The pseudonymous front-end developer, known as Boga, is credited as an author in Dough Finance’s source code under the alias 0xboga.
A limited liability corporation for World Liberty Financial is registered under Folkman’s name, who, along with Herro, co-created Subify—a platform marketed as a censorship-free alternative to Patreon and OnlyFans, both of which enable customers to compensate content creators, particularly in the adult content sphere. Folkman has previously registered a company named Date Hotter Girls LLC and has shared seminars on YouTube that focus on dating advice.
Attempts to reach Folkman, Herro, World Liberty Financial, and the Trump campaign for comments have gone unanswered.
Details surrounding Trump’s entry into decentralized finance (DeFi) have been notably scarce until now. The Trump family has teased the initiative on social media but offered little more than the project’s name. Initially announced under the title The DeFiant Ones, the project has since been rebranded as World Liberty Financial.
According to the white paper, the initiative will feature a “credit account system” that operates on the DeFi platform Aave and utilizes the Ethereum blockchain, facilitating decentralized borrowing and lending.
Governance tokens like WLFI typically grant their holders the ability to influence the management of the crypto project. In this case, users of the platform will have the opportunity to suggest and vote on the addition of new DeFi lending markets or the integration of new blockchains.
The white paper also outlines plans for an “easy-to-use interface” designed to provide access to WLFI as a “smart account” or a brokerage service. The track record of previous attempts to establish crypto brokerage services has been mixed; for instance, Voyager Digital, which provided such services, declared bankruptcy in 2022, resulting in significant losses for its customers. More traditional financial institutions have started to explore offering brokerage services to crypto clients but have yet to deeply engage in DeFi.
The Leadership Team Behind World Liberty Financial
At the helm of the World Liberty Financial initiative is Donald J. Trump, who has taken on the title of “Chief Crypto Advocate.” His sons, Eric Trump and Donald Trump Jr., are actively involved as “Web3 Ambassadors” and appear to be the driving force behind the project.
The leadership team also includes individuals outside of Trump’s family. Alongside Folkman, Herro, Lojnita, and Boga, the team features long-time Trump associate and prominent property developer Steve Witkoff, who is designated as “Institutional Investment,” his son Zach Witkoff, who handles “Intelligence,” and Alex Golubitsky, who serves as “Legal Counsel.” Golubitsky and his legal partner, Gabriel Shapiro, run the crypto governance advisory firm MetaleX Pro, which has disclosed that it will receive 1.3% of World Liberty Financial’s forthcoming token, $WLFI.
Folkman and Herro, who is also known as “Chase Hero,” have been long-time friends and business partners. Their ventures include Subify, and they have previously run “mastermind groups”—exclusive networking clubs with high entry fees—and sold online e-commerce courses. Herro has been featured on popular podcasts, including Logan Paul’s “Impaulsive,” where he discussed his past incarceration related to drug offenses and his journey to becoming a “self-made businessman.” Paul is currently facing a class action lawsuit related to his failed CryptoZoo project. Court records indicate that Herro owns a 34-foot boat named “Clickbait.”
Data from Open Corporates shows that Folkman, using the alias Zack Bauer, previously operated the dating advice platform “Date Hotter Girls” in collaboration with another individual, Rob Judge. During his time with Date Hotter Girls, Folkman conducted “masterclasses,” including one focused on how to “Become the Ultimate Alpha Male.” Beginning in 2015, Herro and Folkman created “The Watchers,” a Facebook page and YouTube channel with 2,280 subscribers dedicated to sharing cryptocurrency information and entrepreneurship advice. However, their last video was uploaded four years ago. Herro previously managed a crypto trading firm called “Pacer Capital,” which appears to no longer be operational.
Engaging with Crypto Voters
This initiative marks a significant pivot for Trump, who during his presidency expressed skepticism towards digital currencies, famously describing Bitcoin (BTC) as “based on thin air.” Now, with a campaign pledge to transform the United States into the “crypto capital of the planet,” the former president seeks to bolster his appeal among an industry responsible for over half of all corporate campaign contributions in this election cycle. This shift comes after Trump successfully sold multiple waves of Trump-themed non-fungible tokens (NFTs), some offering purchasers raffle tickets for a dinner with him or similar incentives, with the fourth batch recently released.
Cryptocurrency firms have contributed $119 million to the 2024 election cycle, second only to the fossil fuel sector in terms of spending. Among the top ten corporate donors in this election are Coinbase and Ripple, with Coinbase leading the pack. The crypto industry has also made its presence felt through strategic funding from Fairshake, a super political action committee, and its affiliated PACs, which claim 26 victories in the 2024 primaries.
Trump and other Republicans are attempting to position themselves as champions of the crypto industry, promising to replace unpopular regulators and create an environment where entrepreneurs can launch products without the looming threat of lawsuits or subpoenas from regulatory bodies like the Securities and Exchange Commission. In contrast, Democrats have shown a more divided stance on the issue; while some prominent lawmakers, such as Senator Chuck Schumer, advocate for legislation to clarify the regulatory landscape, others continue to express opposition to digital assets. Vice President Kamala Harris, the Democratic nominee, has remained silent on the topic of cryptocurrency and its implications.
Nikhilesh De contributed reporting to this story.
Business
Bhutan’s Strategic Investment in Bitcoin: A New Era for the Himalayan Kingdom
Explore how Bhutan is embracing Bitcoin as a strategic investment, marking a transformative shift for the Himalayan kingdom. Discover the implications of this move on its economy, sustainability, and future in the digital age.
Buddhist Kingdom’s Bold Move into Bitcoin
A stunning landlocked nation nestled between India and China, Bhutan has made headlines by accumulating significant bitcoin (BTC) holdings totaling over $780 million in recent years. This amount represents nearly one-third of the country’s gross domestic product (GDP), positioning Bhutan as the holder of the fourth-largest state-owned stash of BTC, as revealed by the on-chain analytics tool Arkham.
Known for its unique approach to governance, Bhutan emphasizes the happiness of its fewer than 900,000 citizens as a more meaningful metric of well-being than traditional economic indicators. This Himalayan kingdom has become the second nation, following El Salvador, to officially embrace BTC as part of its national strategy, incorporating it into the state-owned Druk Holdings fund.
According to Arkham, Bhutan has established bitcoin mining facilities across various locations, with the most significant operation situated on the site of the now-defunct Education City project. Unlike many governments that acquire BTC through asset seizures related to law enforcement, Bhutan’s holdings have originated from extensive bitcoin mining activities, which have seen a remarkable increase since early 2023.
These mining operations are likely connected to Bitdeer (BTDR), a prominent player in the cryptocurrency mining sector. In 2023, the Singapore-based firm announced its collaboration with the Bhutanese government to develop cryptocurrency mining operations in Southeast Asia, successfully raising over $500 million for this ambitious venture. Following this announcement, Bitdeer disclosed that it had completed the first phase of a 100 megawatt (MW) mining facility.
Looking ahead, Bitdeer announced plans to expand Bhutan’s mining capacity to a staggering 600 MW by 2025, reflecting the growing significance of this initiative.
Despite its small geographic size, even smaller than Switzerland, Bhutan faces challenges such as limited economic diversification and an underdeveloped private sector. The nation primarily relies on sectors like hydropower, tourism, and agriculture to generate revenue. In 2022, Bhutan’s GDP was recorded at just under $3 billion, approximately half that of the Maldives.
To bolster its economy, Druk Holdings is exploring opportunities across various sectors. The organization’s website highlights “digital assets” as a key focus area in its technology-driven investment strategy, which also includes projects in hydropower and emerging digital realms like the metaverse.
Recent activities in the Druk wallets, as monitored by Arkham, indicate a flurry of deposit and withdrawal transactions in recent weeks. The fund has received multiple deposits of up to 2 BTC from Foundry, another mining entity, as well as from other unidentified bitcoin addresses during the past week. Additionally, Druk Holdings has periodically transferred bitcoin to various addresses, including crypto exchanges. One notable transaction from early July involved a transfer of over $25 million worth of BTC sent to the crypto exchange Kraken, suggesting that it was likely sold to capitalize on market conditions.
Business
Bitcoin and Crypto Markets React to Anticipated Federal Rate Cuts
Explore how Bitcoin and cryptocurrency markets are responding to the anticipated Federal rate cuts. Discover the implications for investors and the broader financial landscape in this insightful analysis.
Bitcoin and Crypto Markets Await Federal Rate Cuts
Bitcoin (BTC) and the broader cryptocurrency markets have seen minimal fluctuations over the past 24 hours as traders remain cautious ahead of the upcoming Federal Open Market Committee (FOMC) meeting on Wednesday. This meeting is particularly significant, as officials are anticipated to announce the first interest rate cuts in four years. Currently, Bitcoin is trading just below $58,500, specifically at $58,480, reflecting a relatively stable performance. The CoinDesk 20 (CD20), a benchmark for the largest digital assets, has experienced a slight increase, trading above the 1,800 mark.
In terms of daily activity, inflows into Bitcoin exchange-traded funds (ETFs) have amounted to $12.9 million, with a substantial portion directed towards BlackRock’s IBIT. Analysts widely expect the Fed to unveil a rate cut on September 18, signaling the beginning of a potential easing cycle that has historically provided support for risk assets, including Bitcoin.
As of Tuesday morning in Asia, the 30-Day Fed Funds futures prices indicate that traders perceive a 67% likelihood of a significant 50 basis points rate cut, bringing the target range to 4.7%-5%. This is an increase from Monday’s implied probability of 50% and a notable rise from the 25% probability reported a month ago. On Polymarket, traders are assigning a 57% chance of a decrease exceeding 50 basis points, alongside a 41% chance of a 25 basis points cut.
Meanwhile, the overall market remains relatively stable. Noteworthy movements have been observed, such as XRP rising by 3.5%, SUI increasing by 2.5%, and Fantom’s FTM surging by 10.5%, buoyed by positive market sentiment surrounding its forthcoming rebranding to Sonic.
Trump’s World Liberty Financial to Introduce WLFI Token
In other news, the team behind World Liberty Financial, a project receiving endorsement from former President Donald Trump and his family, has announced the launch of a governance token. However, it is crucial to note that this token will only be available to accredited U.S. investors. During a livestream that lasted over two hours, the team highlighted that the token is intended for governance participation rather than for economic profit and did not disclose a specific launch date during the X Spaces stream.
Throughout the livestream, Trump himself did not specifically mention the token or provide an endorsement. Instead, he reiterated his general views on cryptocurrency policy, much of which echoed his previous public statements, including those made at the recent Bitcoin Conference held in Nashville.
Figure Markets Launches Exchange with Real Estate-Backed Yields
In a groundbreaking development within the crypto space, Figure Markets has announced the launch of its exchange, coinciding with the Token2049 event in Singapore. Founded by Mike Cagney, a co-founder of SoFi, Figure Markets introduces an innovative method for generating yields for users who store their cryptocurrency on the platform.
According to a recent release, Figure Markets claims it can offer returns of up to 8% for non-USD and stablecoin balances. This is achieved by leveraging a fund backed by real-world assets, particularly home equity loans. The operational model involves traders depositing their funds into Figure Markets, which are then pooled and lent to Figure Technologies for the issuance of secured home equity loans. The interest paid by borrowers on these loans creates a spread that not only covers operational costs but also provides returns to investors. These investors benefit from dual recourse protections, daily liquidity, and interest payments that accrue based on the duration of their investments.
While Real World Assets (RWAs) are progressively becoming a noteworthy aspect of the cryptocurrency industry, there are still very few applications that seek to derive yield from these assets to support their operations. Prior to the launch of Figure in 2023, Cagney had withdrawn the company’s bid for a U.S. federal bank charter amid regulatory scrutiny, opting instead to pursue partnerships with established banks.
Business
Meta Bans Russian Media Outlets Amid Disinformation Concerns
In response to rising disinformation concerns, Meta has imposed bans on several Russian media outlets. This decision highlights the ongoing battle against misinformation and the platform’s commitment to ensuring accurate information for its users.
Meta Takes Strong Action Against Russian Media Outlets
On Monday, Meta announced a significant initiative to prohibit Russian media outlets, including the state-funded television network RT, from utilizing its platforms. This decision comes in light of ongoing scrutiny in the United States regarding these outlets’ involvement in covert influence campaigns designed to manipulate online discourse across various social media platforms.
Meta, the parent company of popular applications such as Facebook, Instagram, and WhatsApp, stated that the ban would be implemented in the coming days. This decisive action marks an escalation in the ongoing efforts to combat Russian state media actors, which U.S. intelligence officials have identified as key players in disinformation operations that span the globe, infiltrating the world’s largest social networking sites.
In a formal statement, Meta expressed, “After thorough consideration, we have expanded our current enforcement measures against Russian state media outlets. Rossiya Segodnya, RT, and other related entities are now prohibited from our applications worldwide due to their involvement in foreign interference activities.”
Recently, U.S. authorities have tightened their grip on RT, particularly for its attempts to meddle in the upcoming presidential election scheduled for November. On Friday, the United States, in conjunction with Canada and Britain, accused RT of functioning as a conduit for Russian intelligence agencies. They announced new sanctions aimed at curtailing international funding sources that support disinformation campaigns globally.
This crackdown follows the federal indictment of two RT employees, who allegedly funneled at least $9.7 million to finance American podcasters on Tenet Media, a video-streaming service based in Tennessee. The goal was to amplify the Kremlin’s propaganda and undermine the integrity of the American democratic process.
Secretary of State Antony J. Blinken emphasized the broader implications of these tactics, stating, “We’re revealing how Russia employs similar strategies globally.” He further noted, “The Russian weaponization of disinformation to destabilize and polarize free and open societies is a challenge that impacts every corner of the world.”
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