A cryptocurrency startup led by Donald Trumpthe sons, Donald Jr. And Eric Assethas raised concerns among some Trump’s Most Loyal Allies in the Crypto Industry.
What happened: The Trump siblings have been publicizing their upcoming cryptocurrency company, World Liberty Financial, in recent weeks.
However, according to the report by Politico, the company has been plagued by a series of setbacks, including hacking incidents involving members of the Trump family and concerns about World Liberty’s intimate connection to a blockchain company that lost $2 million due to security breaches.
“It’s a huge mistake” Nicholas Carterpartner at crypto venture capital firm Castle Island Ventures and Trump supporter, told the outlet.
“It seems like Trump’s inner circle is just cashing in on his recent support for crypto in an easy way, and frankly, it seems like they’re wasting a lot of the goodwill that’s been built so far with the “industry,” he added.
Earlier this week, accounts belonging to Trump’s daughter-in-law and daughter were compromised and used to advertise a crypto token allegedly from the Trump brothers’ startup.
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This prompted the company to warn individuals not to click on any links or purchase shared tokens from their profile.
According to the media outlet, a representative of World Liberty, Zak Folkmansaid that “building a world-class decentralized finance platform with the best in the industry”.
He also said that unauthorized X-rated posts and the fake Telegram channel had been reported to both platforms. Folkman confirmed that Lara, Eric Trump’s wife, and Tiffany Trump, Donald Trump’s daughter, are not involved in the project.
Additionally, doubts remain about the World Liberty Financial team. The Trump brothers’ company is circulating a white paper describing a borrowing and lending service similar to Dough Finance, a blockchain application that was hacked for $2 million in July.
The four people who created Dough Finance are listed as members of the World Liberty Financial team.
Despite these issues, Donald Trump has pledged to make the United States the “crypto capital of the world” if he wins the presidency again in November, leading to claims that his crypto policies could favor his family.
Why it matters: The Trump family’s entry into the crypto world has been met with skepticism and concern, particularly due to recent hacking incidents and connection to a previously compromised blockchain company.
This venture could potentially impact the reputation and acceptance of cryptocurrency in the political sphere, especially if it is seen as a way for the Trump family to profit from Donald Trump’s potential return to the presidency.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga Publishers.
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