Trump rolls out new crypto business, purpose or launch date unclear

In a traditionally rambling way on an X livestream, Donald Trump formally introduced World Liberty Financial, his new crypto business, late Monday. Ethics experts have questions.

The all-important presidential election, in which Trump is battling Kamala Harris, is less than a couple of months away. Clearly, there’s a lot to do – especially since Trump’s opponent seems to be leading the polls.

Some might question how the former US president manages to find the time to embark on a new business in the middle of such a busy season.

But Trump, already the majority owner of Trump Media & Technology Group, has long been known to not shy away from projects, especially ones designed to benefit himself and his family. World Liberty Financial (WLF) would be run with the help of Trump’s two sons, Donald Trump Jr. and Eric Trump.

Besides, the final pre election sprint might actually be a good time to try and capitalize on what already is Trump’s third run for the White House.

Finally, Trump has been trying to woo libertarian-minded crypto players to vote for him for months. In June, he presented himself as a champion for cryptocurrency and slammed Democrats' attempts to regulate the sector.

On the campaign trail, Trump has pledged to loosen federal regulations on digital currencies and said he would make America the “world capital for crypto and bitcoin.” By the way, he used to bash crypto, but he is now chasing campaign donations and votes, which are much needed to catch Harris.

Millions of Americans invest in or trade cryptocurrencies, which are most popular with younger men.

Earlier this month, Trump said that WLF “embraces the future with crypto and leaves the slow and outdated big banks behind.” During the livestream on X, though, he didn’t directly address the new venture.

“If we don’t do it, China is going to do it. China is doing it anyway. But if we don’t do it, we’re not going to be the biggest, and we have to be the biggest and the best,” Trump said.

Join me live from Mar-A-Lago at 8:00PM Eastern, tonight on X Spaces. Set a reminder and be sure to tune in! https://t.co/MXTu3hxVFP

undefined Donald J. Trump (@realDonaldTrump) September 16, 2024

Still, not much is known about WLF – its exact purpose remains unclear. There’s no official launch date, and the website of the project is pretty bare.

Some details are available, though: WLF will have its own crypto token, or “stablecoin,” whose value will be pegged to the value of the US dollar. Only accredited investors will be able to purchase them.

About 63% of the tokens will be sold to the public. Twenty percent of the equity will be held by Trump family members and insiders, and 17% will be set aside for user rewards.

Donald Trump Jr. recently said the new venture would “make finance great again.” However, the largely unregulated world of decentralized finance – in theory more egalitarian – can also be used for illicit activities such as terrorism and drug trafficking.

Plus, again, if the future's so bright, why is it also so murky? That’s the question Austin Campbell, writer and consultant, teaching at the New York University’s Stern School of Business.

“Nothing I have seen about this tells me they have first-rate people in place for security, economic design or operations. I couldn’t tell anyone in good faith to put their money in this or use it,” Campbell told USA Today.