- The project defeated by Trump, World Liberty Financial, earlier this week, announced the launch of a strategic token reserve, which claims to “strengthen” cryptographic markets against volatility.
- Critics including two CEOs Prime Digital Assets, Alexander Blume, labeled the program without advantage for token holders, intended to enrich the Trump family and to mitigate the payment of political pots.
The Trump family involved in a grade? Surely not!
But it is exactly as well as a figure in the cryptographic industry described the plan of the DEFI project supported by Trump, World Liberty Financial (WLFI), to launch its own “strategic token reserve”.
Addressing The Block, Alexander Blume, CEO of the investment consulting company, Two Prime Digital Aets described the reserve plan for tokens as “mainly as a smart rank”.
Blume said that the reserve is mainly designed to allow Trump family members to take advantage of Donald Trump’s political power in order to increase their own personal wealth. He said that an additional advantage for the family is that it will allow practically anyone, anywhere on earth to pay quickly and conveniently bribes while along the corruption regulations. Everyone (named Trump) wins!
In general, the Trump family is negotiated on their political power and its reputation for taking advantage for themselves. The product also offers a means of global interests to influence the favor of the Trump family without having to make political gifts directly or to comply with political regulations.
Alexander Blume, CEO of Two Prime Digital Assets Unsurprisingly, the WLFI team characterizes its plan differently, claiming that the reserve of tokens – which they call a macro strategy – aim to “serve as a robust financial skeleton for the WLFI” “allowing the project to stabilize the notoriously volatile cryptographic market .
The project governance token, also known as WLFI, was launched last October to disappoint initial sales in part because of its total lack of public services and its small characters stipulating that it is not transferable. However, the interest has increased as Trump’s inauguration approached and now more than $ 300 million ($ 474.5 million in the) WLFI were sold to around 80,000 holders.
In relation: 10x research: Trump may have just killed the ‘crypto pump’, sees its same bland
Can anyone trust a reserve supported by Trump to “strengthen” the crypto?
Announced on X / Twitter earlier this week, WLFI said that this reserve of “macro strategy” “will strengthen the leading projects like Bitcoin, Ethereum and other cryptocurrencies which are at the forefront of remodeling global finance ”.
At first glance, this is a dubious affirmation – unless the Trump family can buy huge percentages of the supply in circulation of all the main cryptocurrencies, it seems unlikely that their reserve can ” strengthen ”the market.
In addition, during last week, WLFI transferred around 90% of its existing cryptographic assets to exchanges, probably to sell them – the project now contains only $ 38 million ($ 60 million in) in crypto, having Holded about 360 USD millions ($ 569.4 million in) last week. Not an excellent look for a project saying that it will stabilize the markets.
Nor is it clear from which the funds to pay for this reserve would come, all we know is that WLFI plans to “commit” with financial institutions to contribute token assets to the reserve . This raises the question: what would be the advantage for these financial institutions?
WLFI says they would benefit from it because “contributed assets will take place in the portfolio accessible in public WLFI, offering institutions a transparent exhibition to the cryptographic community”. Again, it doesn’t seem so convincing.
Nevertheless, the WLFI praises its reserve of tokens as a bulwark against the volatility of the cryptography market – so how have its crypto participations work so far? According to the founder of the Aarna protocol, Srikumar Misra, on X / Twitter, not particularly well:
Recent purchases of Multiple WLFI tokens have led to losses greater than $ 21.78 million. A major success came from the purchase of $ 56,317 ETH at $ 3,373 per $ ETH – resulting in a loss of $ 14 million.
Srikumar Misra, founder of the Aarna protocol The DEFI scheme will not help holders of WLFI tokens, says Blume
Blume pointed out that this new reserve will do nothing to increase public services for holders of WLFI tokens, saying that holders are nothing to claim in the reserve with the management of WLFI retaining total control and exclusive access to assets.
Blume compared this to Bitcoin Holdings of Strategy (formerly Microstrategy):
It is actually the truth for microstrategic, shareholders having no complaints on Bitcoin that the company holds.
Alexander Blume, CEO of Two Prime Digital Assets In relation: Can the world of Trump Liberty Financial buys ETH, can it increase the higher price?
However, the two premium CEOs underlined a crucial difference between the two:
At least in the case of microstrategy, there is regulatory surveillance to protect buyers and ensure that the company does what it says.
Alexander Blume, CEO of Two Prime Digital Assets As with everything that is Trump, “the buyer is wary” is the sentence to remember.
