The Trump campaign’s press office did not respond to questions about Barron’s alleged involvement in the DJT token. In a post on X ahead of World Liberty Financial’s announcement, Donald Jr. warned followers to “beware of fake tokens claiming to be part of the Trump Project.”
World Liberty Financial will face strong competition in the DeFi market, which is already crowded with similar services, including Aave, Compound, Venus Protocol and others. “DeFi is pretty mature, especially on the hyper-collateralized side,” says Zach Hamilton, founder of crypto startup Sarcophagus and venture partner at venture capital firm Venture51.
But the Trumps don’t necessarily have to do anything new if they can use their huge public platform to sell the new venture. “[World Liberty Financial] launched with the most free marketing any crypto company can get,” says Hamilton. “Trump is the king of rent-free living in people’s minds.”
DeFi industry executives are cautiously optimistic about the prospect of the Trump family’s arrival; they both enjoy the publicity and are wary of the reputational damage World Liberty Financial could cause if it falls flat or if a technical glitch leads to financial losses.
“I welcome any effort to bring DeFi into the mainstream,” said Brad Harrison, CEO of Venus Protocol. “But like the autopilot at Tesla, DeFi may seem like a simple thing, but the inner workings are complex. Without a solid understanding of its nuances in the hands of experienced technologists and financial engineers, a new platform risks being more of a branding exercise than a meaningful and safe contribution to the space.”
Regardless of the risk of trusting a yet-to-be-battle-tested crypto platform, industry enthusiasts are likely to patronize World Liberty Financial if only to signal support for Trump’s political endeavors. “Now we’re definitely dealing with crypto as a right-wing Republican commodity,” says Jacob Silverman, co-author of the Easy Money: Cryptocurrency, Casino Capitalism, and the Golden Age of Scams. “The industry is so tied to the Republican Party, and they are the biggest donors to any industry this cycle.”
In the vein of various British politicians who have retreated into crypto positions, World Liberty Financial may represent Trump’s attempt to hedge against a loss in the upcoming election – to carve out a backup gig for himself.
“Maybe the raucous reception at the crypto conference in Nashville gave him the impression that this is the world he wants to be in because he’s loved and he can make money,” Silverman says. “For all his faults, he really understands the crowd.”
