Trump’s New Crypto Project Aims For US Dollar-Backed Stablecoin Launch

As a seasoned crypto investor with over a decade of experience navigating the volatile and rapidly evolving digital asset market, I find myself both intrigued and cautious about the latest venture by World Liberty Financial, the crypto project launched by former President Donald Trump.


It’s said that World Liberty Financial, a cryptocurrency project initiated by ex-President Donald Trump, is considering creating its own stablecoin which would function as an alternative representation of the U.S. dollar.

World Liberty’s Stablecoin Ambitions

As a crypto investor, I’m keeping a close eye on the World Liberty team’s efforts. Right now, they’re dedicating their time to meticulously ensure the security and stability of their financial product before it makes its debut in the market.

This means moving through a terrain that is uncertain due to regulations and legal obstacles, which can be overwhelming, particularly when trying to compete with well-established competitors such as Tether’s USDT and Circle’s USDC in the stablecoin market.

This month, World Liberty welcomed Rich Teo, co-founder of Paxos – a company known for issuing stablecoins like the US dollar-backed Paxos Standard Token (PAX) – to head up their initiatives concerning stablecoins and payments. This move aligns with their recent plans related to the Trump project.

Trump’s Crypto Project Challenges Ahead Of Stablecoin Launch

Historically, certain protocols have tried to bypass conventional collateralization strategies through the use of creative cryptographic solutions, yet many of these attempts have ultimately fallen short.

Fortune provides an illustrative case of these issues by referring to the fall of Terraform Labs in 2022. This collapse led to substantial financial losses throughout the market and intensified global legal investigations into its founder, Do Kwon, who is now potentially facing extradition from Montenegro to the United States.

Despite the obstacles, the report underscores that Trump’s World Liberty could reap significant profits if they successfully introduce their stablecoin. For instance, Tether’s USDT raked in a substantial $5.2 billion in profit during the first half of 2024, demonstrating the profitable aspect of this particular market sector.

Trying to gather funds for their projects, the Trump family business recently made a list of more than 100,000 accredited investors as potential backers, aiming to bring in $300 million during their initial offering. Unfortunately, they fell far short of this goal, only managing to raise $14 million and selling just 4.7% of the available tokens.

Trump’s New Crypto Project Aims For US Dollar-Backed Stablecoin Launch

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2024-10-29 00:26