Donald Trump's New Crypto Coin: A Game Changer or Just Another Scheme?

Former President and Republican frontrunner Donald Trump is set to launch his own crypto coin associated with World Liberty Financial (WLFI), a decentralized finance platform. The waitlist for this new token opens tomorrow at 8 a.m. ET, marking what Trump calls his first step to "make America the crypto capital of the world."

"I promised to Make America Great Again, this time with crypto," Trump stated on X last month, urging supporters to be part of this historic moment.

WLFI functions as a money market where users can borrow, lend, and earn interest on their cryptocurrencies, eliminating financial intermediaries. Additionally, holders of the token will have voting rights within the WLFI ecosystem.

Ryan Waite, a political marketing expert, noted that this initiative not only serves as a financial venture but also as a political statement aimed at rallying Trump's supporters to engage with the movement while participating in the DeFi space. The WLF token is branded as a chance for supporters to "shape the future of finance," promoting financial autonomy and conservative values.

How is WLFI Different from Bitcoin?

While Bitcoin is widely recognized as a decentralized digital currency and a store of value, Trump's new crypto coin has distinct differences. The WLF token will not be transferable and lacks yield, with a significant portion reserved for accredited investors. In fact, 63% of the token supply is allocated to those with a net worth of $1 million or more.

Trump is projecting to raise $300 million from the WLFI sale, potentially valuing the company at $1.5 billion. However, concerns have been raised regarding the platform's possible constitutional violations, especially if foreign governments gain access, which could create a conflict of interest during a potential second Trump presidency.

Critics have described this initiative as an obvious pump scheme, highlighting the elitist nature of requiring a high net worth to participate. Many middle-class individuals expressed frustration over being excluded from the whitelist.

Trump's Crypto Views

Interestingly, Trump's stance on crypto has shifted over time. Initially, he expressed skepticism about Bitcoin, labeling it as a volatile asset with no intrinsic value. He previously stated, "We have only one real currency in the USA, and it will always stay that way: the United States Dollar!"

Waite suggests that Trump's new approach may reflect changing views among his voter base, particularly as digital assets gain popularity among those seeking to bypass centralized financial systems. Financial literacy instructor Alex Beene emphasized that while Trump's venture into cryptocurrency is not surprising, it may indicate a market he felt compelled to enter rather than a genuine passion.

Republican presidential nominee, former U.S. President Donald Trump gestures as he walks onstage for a campaign rally on October 12, 2024, in Coachella, California.
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