After leadership management, Trump’s structure received 75% of income from the sale of tokens and 60% of the company’s activities.
The Donald Trump family has gained control of the cryptocurrency company World Liberty Financial (WLF), which attracts more than $ 550 million, selling SO management tokens. These tokens give the right to vote on project changes, but are not subject to sale. Reuters reported this on Monday, March 31.
The project was launched in the last fall to create a financial system without banking mediators in Defi (Decentralized Finance). However, the company has not launched a public platform and has a limited employee staff.
According to updates on the WLF website, in January, control of the company moved to a structure where the Trump family had 60% of the part. Ultimately, Trump owns the right to 75% of the net income from the sale of tokens and 60% of the company’s operating revenue, which potentially gives them nearly $ 400 million.
Such a centralized management model is concerned with crypto experts. They indicate that investors are practically distracted by the opportunity to get financial benefits from the owner of tokens. Jim Angel, Professor of Georgetown University, said he did not see the economic meaning of getting these tokens.
The situation also raises questions about a conflict of interest, as the current president of the United States is directly related to a cryptocurrency company that operates significant funds. Some experts believe that by taking tokens, a fuzzy transfer of money to the US president from influential people or foreign governments is possible.
Despite the criticism, the World Liberty Financial continues to develop its products, especially the platform for lending and launching USD1 Stablecoin, which will be provided with State Bonds of the United States.
Remember, US president Donald Trump on March 6 signed a mandate in the creation of a strategic reserves of Bitcoins. In response to this, the cryptocurrency market sank.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.