From financemagnates
A new crypto venture has emerged as former President Donald Trump's family launches World Liberty Financial, aiming to create a U.S.-dollar-backed stablecoin. This comprehensive guide explains their plans to enter the cryptocurrency market and compete with established players like Tether and USDC.
World Liberty Financial's entry into the crypto space has garnered substantial attention, though initial fundraising efforts have fallen short of expectations. Despite aiming to raise $300 million, the project has secured only $14 million in its initial token sale, with just 4.7% of available tokens purchased by investors.
This modest start hasn't dampened the team's ambitions to create a significant presence in the stablecoin market. The project is now reportedly planning to develop a stablecoin pegged to the U.S. dollar, as reported by Decrypt.
Trump Crypto Project World Liberty Plans to Issue Stablecoin, Sources Say (via @decryptmedia) https://t.co/UrMN4tEhKZ
— jonnycomp (@jonnycomp344502)October 29, 2024
Although the WLFI token has not been warmly received, the proposed stablecoin is expected to have a better chance of success.
The project's cornerstone is the development of a cryptocurrency pegged to the U.S. dollar, entering a market dominated by established players like Tether and USDC. The World Liberty team envisions their stablecoin as more than just another digital asset – it's positioned as a crucial tool for maintaining U.S. dollar dominance in the digital economy.
The stablecoin will maintain a 1:1 ratio with the U.S. dollar through proper collateralization, a feature that distinguishes it from failed experimental approaches that have plagued the industry. This conservative approach reflects lessons learned from past market failures, particularly the collapse of Terra in 2022, which resulted in billions in losses.
A significant boost to the project's credibility came with the appointment of Rich Teo, former co-founder of Paxos, as the lead for stablecoin development. Teo's experience with the dollar-backed Paxos Standard Token brings valuable expertise to the initiative. Under his guidance, the team is meticulously working on security protocols and regulatory compliance before market launch.