Experts Raise Concerns About the Trump Family’s New Cryptocurrency Venture

U.S. President Donald Trump and his family stepped into the cryptocurrency market with the creation of World Liberty Financial (WLFI), a platform that plans to introduce its own digital tokens. Reports indicate that trading of WLFI tokens will begin in September, and the venture has already secured about $1.5 billion through a partnership with ALT5 Sigma, a company listed on the stock market. As part of the deal, Eric Trump has joined ALT5 Sigma’s board of directors, highlighting the family’s deep involvement in the project.

The Trump family is expected to benefit significantly from WLFI. Sources suggest they will control a major ownership share and receive around 75 percent of all revenue from token sales. While this arrangement ensures large profits for the family, financial analysts are expressing strong concerns about the project’s structure. The WLFI tokens, they argue, provide little real backing or control over the USD1 stablecoin they are linked to, leaving doubts about their actual stability and value.

One of the most criticized aspects of WLFI is its business model. Experts say it resembles what some call an “infinite money glitch.” This means the company plans to keep creating new tokens at higher prices to purchase additional assets. Owen Lamont, a portfolio manager at Acadian Asset Management, told The Wall Street Journal that the strategy “violates every principle of finance” and may not be sustainable. Analysts warn that such a system could inflate prices unnaturally and expose investors to serious risks.

This skepticism is not new when it comes to Trump-branded ventures. The Trump Media & Technology Group, which runs Truth Social, has already seen its stock lose about 73 percent of its peak value. Likewise, the $Trump memecoin dropped by nearly 90 percent after early excitement wore off. Even though Trump’s Digital Trading Cards NFTs initially sold at $99 and now trade for more than $200, many investors who bought during the hype ended up losing money.

Experts suggest WLFI may follow a similar path, experiencing an initial spike in demand due to Trump’s brand name, but later declining once the buzz fades. Some analysts believe that for many buyers, purchasing WLFI tokens may be more about showing political support for Trump rather than securing a reliable financial asset.

With the official launch approaching, doubts remain about whether WLFI can provide lasting value or if it will become yet another high-risk venture tied to the Trump family. For now, financial experts are urging potential investors to approach with caution.

For investors looking to explore other digital asset options, exchanges like Coinbase Global Inc. (NASDAQ: COIN) and other platforms can offer alternatives that they can explore and make informed investment decisions.

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