- The Trump family allegedly controls 60% of WLFI, which would lead to decentralization to absurdity and to call up ethical concerns at Defi.
- Unsignable governance tokens and potential political influence lead to an official review of the crypto project associated with Trump.
The latest reports have triggered a controversy about the participation of the Trump family in World Liberty Financial (Wlfi), a decentralized financial platform (Defi). This is followed by an earlier CNF reporting, in which it was pointed out that the Wlfi activities supported by Trump have led to speculation in the run-up to the upcoming crypto summit in the White House in the run-up to the upcoming.
The latest claims indicate that the former President Trump and his immediate family have acquired considerable financial participation in Wlfi, which raises serious concerns about potential conflicts of interest and broader effects on the cryptocurrency sector.
Trump and Wlfi family
According to Reuters, the Trump family controls 60% of Wlfi and is entitled to 75% of net income from token sales, which are estimated at around $ 400 million. In addition, it should also be entitled to 60% of the platform’s operating income. Reuters:
“A spokesman for the White House referred questions about World Liberty to the Trump organization. The head of the legal department of the Trump organization and the two older sons of the president, who are the company’s managers, did not respond to a statement.”
These figures have triggered an investigation into the centralization of an allegedly decentralized platform and the ethical concerns that are associated with such a highly concentrated financial interweaving.
KONTROVERSE A GOVERNANCE-TOKEN
The Wlfi government tokens that give the owners voting rights are not tradable, so that investors cannot have any real influence on platform government. This structure has caused criticism in relation to transparency and sparked doubts about how much power is really transferred to the most of the token owners.
Ethical and regulatory concerns
The overlap of political influence and financial profit has triggered concern in both crypto analysts and political critics. The potential for regulatory influence with the same great financial interest from the Trump family was referred to by some as a conflict of interest.
In addition, the lack of surgical transparency of the platform and the impossibility for investors to get out of their positions have led to increased demands for regulatory supervision.
Effects on the cryptoma market
Finally, the Wlfi situation underlines the importance of transparency and decentralization in the defi area. As of April 1st, Bitcoin is traded at $ 83,075, which means an increase of 1.52% since yesterday, but a decrease of 4% in the last week.
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