Trump's Crypto Empire:The Disguise of Decentralization and the Concentration of Power

Recently, the Trump family's control over the cryptocurrency of World Liberty Financial (WLF) has attracted widespread attention. This company, which raised $550 million, originally promoted decentralized governance, but in reality, the Trump family holds 60% of the shares and receives 75% of the token sales revenue, allowing them to control the direction of the entire project. This not only raises doubts about its true decentralized nature, but also exposes potential conflicts of interest between Trump and the cryptocurrency industry.

The new dominant force in the cryptocurrency market? Full control of the Trump family

In theory, the core concept of cryptocurrency is decentralization and transparent governance. However, the Trump family increased their stake to 60% in January, making WLF essentially a family business. In addition, only 5% of the $550 million raised was used for actual platform development, which means that the core functions of the project are still far away, and the vast majority of the funds have gone into the pockets of the Trump family.

It is worth noting that the governance token (WLFI) of WLF is limited to voting functions and cannot be used for trading or monetization. This makes the holders of the token lack actual economic benefits, and at the same time, because the Trump family holds most of the tokens, they can easily dominate all decisions. This means that the "decentralized governance" of the project is just a facade, but in reality it is still a highly centralized financial entity.

Conflict of Interest: Trump's Regulatory Authority and Market Manipulation Risks

Trump once stated during the 2024 election campaign that he wants the United States to become a global leader in cryptocurrency and supports relaxing regulations on the cryptocurrency industry. However, as his family's control over WLF increases, the "liberalization" of the cryptocurrency market is more like a wealth accumulation plan tailored for the Trump family.

It is worth noting that in addition to WLF, Trump has also launched his own TRUMP token, which has generated over $349 million in fees and skyrocketed the Trump Organization's cryptocurrency revenue to $749 million. If Trump returns to the White House, he will not only be able to influence US encryption policies, but also directly impact market trends, and even bring policy convenience to himself and his family business.

Former US banking regulator Ross Delston bluntly stated, "You have someone responsible for your own regulation." This phenomenon is similar to the situation in the early 20th century where financial oligarchs controlled the market, and may even lead the cryptocurrency industry into the abyss of crony capitalism.

Without technical support, the project may be a foam?

Although WLF claims to be building a decentralized finance (DeFi) platform, its development team currently consists of only two Romanian programmers, one of whom has also been involved in the failed crypto project of co founders Herro and Folkman. The encryption security company CertiK also pointed out that the technical architecture of WLF is still incomplete, the functions have not been fully developed, and there are significant risks in the project.

This is in stark contrast to traditional DeFi projects. Typically, a mature DeFi project requires a strong technical team, a clear roadmap, and comprehensive security audits, while the current state of WLF is more like a speculative project, and may even be classified as a "fund disk" operation.

Conclusion: What does Trump's encrypted layout mean?

Trump's cryptocurrency strategy is not just about accumulating personal or family wealth, it may have profound impacts on the global cryptocurrency industry and even the financial system. He will use policies to influence the market, causing a significant appreciation of his family's cryptocurrency assets, while ordinary investors may become the ultimate 'buyers'.

In addition, the operation model of WLF, which is pseudo decentralized but actually family based, may affect the trust foundation of the entire DeFi industry. The core value of cryptocurrency lies in decentralization and transparent governance, and the Trump family's control over WLF undoubtedly challenges this concept. If this model is replicated or becomes a trend, the entire cryptocurrency market may become more centralized, and even become a financial tool controlled by a few privileged individuals.

In the future, whether the market and regulatory agencies will scrutinize Trump's crypto empire, and whether investors will continue to believe in WLF's promises, will be key factors determining the fate of this project. But what can be certain is that the cryptocurrency industry is undergoing a transformation intertwined with power, money, and politics, and the Trump family is at the center of the storm.