Trump boosts his crypto chops with a new private venture

SIMONE DEL ROSARIO:

Donald Trump is going full crypto.

DONALD TRUMP:

This afternoon I’m laying out my plan to ensure that the United States will be the crypto capital of the planet and the Bitcoin superpower of the world. I will get it done.

SIMONE DEL ROSARIO:

That was the former president back in July.

But along with a crypto plan if re-elected president, he’s also got a private venture in the works.

On Monday, he took a brief break from the campaign trail to, in his words, “launch” a cryptocurrency project at his Mar-a-Lago home.

Trump, along with his sons Eric and Don Jr., appeared on the X livestream.

They’ve been promoting a project known as World Liberty Financial since August, but the details are thin.

During a Q&A at the start of the event, the former president didn’t actually address World Liberty Financial at all but he did speak positively about blockchain tech, NFTs and the growth of crypto.

Then he handed the mic over to his sons and others involved in the family project, but that was also still light on the details.

Luckily, earlier this month, CoinDesk got their hands on the white paper for WLF. So what is it?

Essentially it will be a decentralized finance or DeFi platform where people can borrow, lend and hold crypto to earn interest. So instead of going to a bank, everything is done on the blockchain.

This isn’t necessarily new, as there are tens of billions in DeFi loans out there.

One thing that was announced Monday night was the creation of a token of their own called WLFI. It won’t be transferable and will only be used to vote on changes for the WLF. It’s what is known as a governance token but has no monetary value.

The white paper called Trump the venture’s “Chief Crypto Advocate,” while his 18-year-old son Barron was labeled its “DeFi Visionary.” Eric and Don jr were described as “Web3 Ambassadors.”

{On Camera}

There have been a number of questions about the legality of the candidate’s involvement in a business like this and whether it would violate the constitution’s emoluments clause. But the white paper said Trump, the Trump Organization and his family don’t own or manage the platform although they may receive compensation.

There are two people behind the venture. Chase Herro, a self-described “dirtbag of the internet”: who Bloomberg says sold a lot of things in his career including “Weed. Weight-loss “colon cleanses.” [and] A $149-a-month get-rich-quick class.”

And then there is Zachary Folkman who founded a company called “Date Hotter Girls” which “helped” men in “attracting, dating and keeping women of beauty and quality.”

{Headline reveal}Despite the white paper saying Trump and his family don’t own World Liberty Financial, Congressional Democrats are already calling foul.

Rep. Sean Casten, an Illinois Democrat told Politico: “For those of us who care about preventing money laundering and protecting investors, it is imperative that we apply the highest scrutiny to this most recent Trump family grift.”

Meanwhile, frequent Trump critic Rep. Jamie Raskin of Maryland said: “The basic problem is that the presidency is not a money-making venture, or it should not be, and Trump from the beginning has regarded it as an extension of his business enterprises. This just multiplies the conflicts of interests and the exposure to more criminal and constitutional problems.”

No matter the conflict concerns, back in January 2021, the Supreme Court balked at taking up a case that suggested Trump had profited from his presidency.

As recently as 2021, Trump referred to Bitcoin as a “scam.”

But he’s now embracing it and its community. He spoke at Bitcoin 2024 earlier this year and promised to make changes to loosen regulation.

DONALD TRUMP:
On day one I will fire Gary Gensler and hire a new SEC chairman. I didn’t know he was that unpopular.

I will appoint a new SEC chairman who believes America should build the future, not block the future, which is what they’re doing.