President Donald Trump’s crypto portfolio continues to grow. His project as crypto world liberty Financial launched a stablecoin, or a token set for a fiduciary currency like the US dollar, according to Bitcoin or Ethereum can go up or drop by 10% in hours. As their name suggests, stablecoins are designed so as not to fluctuate. This is done by creating a reserve, generally in cash or in cash invoices, which supports stablecoin on an individual basis.
Stablecoins can serve as an equivalent in cash and are particularly popular with merchants because they provide volatility shelter. They do not need investors to go from crypto to fiduciary currency. The two largest stablecoins are the USDT and the USDC, which have stock market capitalizations of around $ 143 billion and $ 60 billion, respectively.
Why would the Trump family launch its own stablecoin?
Stablecoins are a large company. Tether, the company behind the USDT, said that it had brought in $ 13 billion in 2024 in a financial statements. And Circle, the company behind USDC, would be planning To become public.
Attach and surround their stablecoins, fixed to the US dollar, with treasury bills or slices of the American debt. While stable holders are not of interest, stable transmitters can sometimes pocket 5% of their treasury bills, which accumulates yield. It’s easy money. The attachment has put its billions of profits with only a hundred employees August. In comparison, Cisco, the telecommunications giant, needs 90,000 employees So as not to 12.6 billion dollars.
What is World Liberty Financial?
Announced in August, World Liberty Financial is one of Trump’s cryptographic products, which also includes NFT and a same. The project focuses on DEFI or decentralized finance. DEFI applications aim to reproduce banks – maintenance and borrowing companies, but on blockchains.
The product plans of World Liberty Financial are vague. He has not yet launched and his website has little details on what his platform does. The project “gilded paper“Said it intends to be a center where users can access a series of DEFI applications, such as decentralized lenders or decentralized crypto exchanges. Trump is listed as” the main defender of cryptography “.
What has Liberty Financial has done so far?
The product of World Liberty Financial is still under Wraps, but it allowed people to buy his own cryptocurrency: $ WLFI. The token allows users to vote on certain proposals that govern the DEFI platform still launched, according to The Gold Paper.
Investors have flooded the Trump family cryptocurrency. On Tuesday, the project announced that it had raised $ 550 million in tokens sales. Ethics experts have raised Alarm on the influence potential of cryptocurrency. For example, some criticism Due to Justin Sun, the objective of disputes of the Securities and Exchange Commission, and its public purchase of $ 75 million in WLFI.
Who is involved in World Liberty Financial?
The list of project participants is a mixture of members of the Trump family, loyalists and crypto developers. The sons of the President – Barron, Eric and Donald Jr. – are “the WORLD Liberty Financial Web3 ambassadors. Steve Witkoff, a loyalist of Trump and real estate tycoon, as well as his two sons, Alex and Zach are listed as co -founders.
And two Defi developers, Zak Folkman and Chase Herro, are also listed as co -founders. The pair was behind the crypto pulp project, which suffer A hacking of $ 2 million in July.
This story was initially presented on Fortune.com
