US presidential candidate Donald Trump, who has promised to make the US “the world's Bitcoin superpower”, is actively working on the cryptocurrency sector.
One of these was undoubtedly the new DeFi project called World Liberty Financial (WLFI), owned by Donald Trump and his sons.
Trump's crypto project, which he launched last week, has received both praise and criticism from the industry. One of those who criticized Trump's project was Cardano (ADA) founder Charles Hoskinson.
Speaking to the Financial Times, Charles Hoskinson warned that the new DeFi platform backed by Donald Trump and his sons could be “frightening” for the crypto industry.
Hoskinson, who expressed reservations about the Trump-backed initiative, said the WLFI project could face some challenges.
Hoskinson said the project could face increased scrutiny from U.S. regulators because of its ties to Trump, adding that the project's bias would be a problem because many U.S. political organizations would attack the project because of its ties to Trump.
“Trump is launching a DeFi app, but it scares me because the left hates everything Trump does with such a passion.
Because Trump has taken something bipartisan and is making it partisan.
“The Democrats are going to try to mobilize the institutions of the United States to slow down and hurt Trump. So I wouldn't be surprised if there was a Justice Department investigation or a [tax] investigation or the SEC coming after them for the new platform. That would be a blow to the entire industry and create a lot of problems.”
Hoskinson added that he doubts that Trump and Harris, who are candidates in the US elections, will create a strong cryptocurrency industry in the country.
Trump’s project, World Liberty Financial, which he unveiled last week, promised to leave behind “slow and outdated big banks,” but full details have not yet been released. The cryptocurrency project, World Liberty Financial, also said it will keep 63% of its WLFI token supply public.
One of the critics of the WLFI project was SEC member Mark Uyeda. Uyeda took a cautious approach to the DeFi project, saying, “If I were talking to President Trump or any other crypto entrepreneur, I would tell them to get good lawyers.”
*This is not investment advice.