New disturbing information has come up as a report alleges that U.S president Donald Trump and his immediate family receive most of the revenue generated by World Liberty Financial (WLFI). This report has insinuated that with the family taking up most of the proceeds from the $WLFI token sale there is a risk of conflict of interest.
The report further highlights questions about the transparency and accountability of the crypto policies spearheaded by the U.S president. Additionally, Trump’s family has over 60% control of the WLFI through a new holding firm.
Trump’s Family Receives 70% of WLFI Revenue; as Per Reuters
Launched in the fall of 2024, the World Liberty Financial is a crypto project aimed at providing decentralized services to users. However, this project is publicly associated with president Donald Trump and has made big strides since its launch. But Reuters, the news and media division of Thomson Reuters, claims to have evidence of the percentage that Trump’s family gets from the WLFI revenue.
According to the report by Reuters, the family of Trump gets 75% of the token sale revenues. Additionally, the family of the U.S president gets 60% of other incomes by the firm. Recently, World Liberty Financial concluded its initial token sale hence Trump’s family should get $400 million from the sale as per the arrangement.
The report further clarifies that WLFI is only be left with 5% of the revenue for the project development operations. The other 20% is issued to the co-founders of the organization. “After World Liberty’s co-founders take their cut, the crypto venture will be left with 5% of the $550 million raised to date to build the platform,” the Reuters report read.
Is There Conflict of Interest in WLFI?
For WLFI, there is still no clarity about the governance actions the holders can influence. Additionally, once bought the tokens cannot be resold. This raises several concerns about why an average retail trader should acquire the WLFI tokens.
According to Marquette University finance professor David Krause, the project “pretty much excludes public investors or token holders from any meaningful financial participation.” The professor has previously analyzed and published a study about World Liberty Financial hence his judgement could be grounded.
The reported numbers suggest possible serious conflict of interest and could present a severe danger to the U.S economy. If Trump gets a chunk of the WLFI token sales, this could be substantial misuse already. Ross Delston stated that WLFI is a “perfect vehicle for governments or oligarchs overseas to funnel money to the president.”
More Concerns Sparked By USD1 Stablecoin
Clearly, there are potential risks associated with the percentage of WLFI revenue issued to Trump’s family. With Trump pushing for USD1 stablecoin launch, further concerns have emerged. Elizabeth Warren, for instance, has called out a review of the FIT21 bill. Warren argued that the bill gives Trump and Musk too much control over financial markets.
Proper regulation is thus needed to prevent top political figures with massive influence from manipulating the market for their gains. If these issues are not addressed early, a few powerful people could benefit at the expense of crypto investors.
#blockchain #crypto, #decentralized, #distributed, #ledger
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