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The cryptography portfolio of President Donald Trump continues to grow. Its Crypto World Liberty Financial project has launched a stablcoin, or a token linked to a fiduciary currency such as the US dollar, according to Bitcoin or Ethereum they can rise or plumme it 10% in hours. As the name implies, Stablecoins is designed not to fluctuate. This is achieved by creating a reserve, typically in cash or Treasury invoices, which support the stable individually.
Stablecoins can serve as an equivalent in cash, and are especially popular among merchants because they provide a volatility refuge. They do not require investors from crypto to fiduciary currency. The two largest stables are USDT and USDC, which have market capitalizations of approximately $ 143 billion and $ 60 billion, respectively.
Why would the Trump family launch their own Stablecoin?
Stablecoins are big businesses. Tether, the company behind USDT, reported that he had won $ 13 billion in 2024 in an non -audited financial statement. And Circle, the company behind the USDC, is planning To go to public.
Tether and surrounded his stable, linked to the US dollar, with treasures or sections of US debt. While Stablecoins holders do not receive interest, Stablecoin emitters can sometimes pockeine a 5% discount on their treasure bonds, which increases yield. It is easy money. Tether got his billions in profits with only about 100 employees from August. In comparison, Cisco, the telecommunications giant, needed 90,000 employees to net $ 12.6 billion.
What is World Liberty Financial?
Announced in August, World Liberty Financial is one of Trump’s cryptographic products, which also include NFTS and a memory. The project focuses on decentralized finance. Defi applications are aimed at replicating banks, borrowed and loans, but in blockchains.
The product plans of World Liberty Financial are vague. It has not yet been released, and its website has few details about what its platform does. The project “gold paper“He says he intends to be a center where users can access a set of Defi applications, such as decentralized lenders or decentralized cryptography exchanges. Trump appears as” main cryptography defender. “
What has done once World Liberty Financial?
The product of World Liberty Financial is still secret, but has allowed people to buy their own cryptocurrency: $ WLFI. The Token allows users to vote on certain proposals that govern the defi platform still launched, according to the gold document.
Investors have flooded the Trump family cryptocurrency. On Tuesday, the project announced that it had raised $ 550 million in tokens sales. Ethics experts have increase Alarm on the potential of cryptocurrency for the influence seller. As an example, some critics He pointed to Justin Sun, the objective of litigation of the stock exchange and values commission, and his public purchase of $ 75 million in WLFI.
Who is involved in World Liberty Financial?
The list of participants in the project is a mixture of members of the Trump family, loyal and cryptographic developers. The children of the President, Barron, Eric and Donald Jr., are the “Web3 Ambassadors” of World Liberty Financial. Steve Witkoff, a loyal magnate and Trump’s real estate, as well as his two children, Alex and Zach appear as co -founders.
And two Defi, Zak Folkman and Chase Herro developers also appear as co -founders. The couple was behind the finance of the Crypto project mass, which suffered A Hack of $ 2 million in July.
This story originally appeared at Fortune.com
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