Holders of the World Liberty Financial token (WLFI) have overwhelmingly approved a proposal to make these tokens tradable, a decision that could greatly influence their market value and the financial interests of the Trump family.
World Liberty Financial, a venture linked to Donald Trump’s family, introduced WLFI tokens last autumn as part of its decentralized finance (DeFi) platform, which also features a stablecoin known as USD1. Initially, these tokens were designed to provide holders with voting rights on specific business decisions, including modifications to the platform's foundational code.
Investors were initially attracted to WLFI due to its association with Trump, anticipating that the tokens would rise in value with his endorsement. The recent decision to permit trading marks a significant evolution, allowing market dynamics to determine their pricing. This change is expected to draw a broader range of investors, potentially generating trading fees for exchanges that list WLFI and fueling speculation regarding the tokens' future worth.
While the direct benefits to the Trump family remain uncertain, the anticipated uptick in trading activity could bolster the overall value of their substantial holdings.
Concerns have been raised by critics, including several Democratic lawmakers, regarding the ethical implications of the Trump family's financial involvement with World Liberty Financial. Senator Elizabeth Warren and Representative Maxine Waters have expressed their worries to the US Securities and Exchange Commission (SEC), suggesting that the family’s financial stake poses a significant conflict of interest that may affect regulatory oversight within the cryptocurrency sector. They highlighted that WLFI tokens have not been classified as securities by the SEC, placing them outside the rigorous regulatory framework that governs traditional investments like stocks.
The White House has reiterated that Trump’s assets are managed by a trust overseen by his children, claiming there are no conflicts of interest; however, details regarding this trust arrangement remain undisclosed.
Trump’s firm, DT Marks DEFI LLC, was allocated 22.5 billion of the total 100 billion WLFI tokens, with Trump personally holding approximately 15.75 billion tokens at the end of last year. Reports indicate that the Trump family has earned around $500 million from World Liberty since its launch.
In light of the recent vote, the White House declined to comment to Reuters on how the tradability of WLFI might impact the family’s financial interests. A representative from World Liberty Financial noted that additional information about the trading process would be released shortly. The proposal to initiate tradability received strong backing, with 99.94% of nearly 20,900 votes in favor. Many token holders shared their reasons for voting, with some expecting price increases while others aligned their investment with support for Trump.
