Plans by ex President Donald Trumpthe eldest sons of Donald Jr And EricA crypto startup has raised alarm bells even among its staunchest peers in the sector, New report in Politico.
The brothers have spent recent weeks touting World Liberty Financial, their soon-to-be-launched, secrecy-shrouded cryptocurrency firm.
But a series of mishaps, including Trump family members hacked by scammers and concerns about World Liberty’s deep ties to a blockchain firm that lost $2 million due to security flaws, have some arguing they should have packed it in before they started.
“This is a big mistake,” said Nick Carter, a partner at crypto venture capital firm Castle Island Ventures and a Trump supporter. Politico. “It looks like Trump’s inner circle is just kind of naively holding back on his recent embrace of crypto, and frankly it looks like he’s burning a lot of the good will he’s built with the industry so far.”
Scammers are already storming the door. Trump’s daughter-in-law and daughter-in-law earlier this week were hacked And their X accounts were used to promote Don Jr. and Eric’s startup’s crypto token. That forced the company to play damage control, warning people “not to click on any links or buy any tokens shared from their profiles.”
According to Coinbase, this is at least the third time the token has been promoted with dubious claims of Trump ties. Notorious pharma bro and convicted fraudster Martin Shkreli claimed that his DJT token, issued last month, was created with Trump’s youngest son, Barron, while the Trump-themed Restore the Republic token, which had a market capitalization of $155 at its peak. reached, it was reduced by 95 percent. In a single day last month, Eric clarified that Trump had not launched any official crypto.
Then there is the concern about the team at World Liberty Financial. Received the base of the coin The Trump brothers’ firm has circulated a white paper that describes Dof Finance, a lending and financing service similar to a blockchain app. Hack for $2 million In July. World Liberty lists four people who set up Duff Finance as members of the financial team. One of them, Zachary Folkman, previously ran a pick-up artist platform called “Date Hotter Girls.”
The deleted code from World Liberty Financial, which Coinbase found on Github, also appeared to be lifted directly from Duff Finance.
Set against these concerns, the father of the Trump siblings has promised to transform the United States into the “crypto capital of the planet” if he retakes the White House in November, which could benefit his family from his crypto policymaking.
“Maybe it doesn’t move the needle for most people, but if this thing gets hacked or regular people lose money on it or it opens the door for the SEC to investigate the team, it seems like there’s a risk of harm.” Carter, a Trump-supporting crypto VC, said Politico.
A Washington crypto industry insider, who spoke to the publication on condition of anonymity, also said he has a “laundry list of concerns” about how the Trump crypto project could damage the industry’s reputation.
Post Even Trump’s crypto allies think his sons’ new startup is a stupid idea appeared first The Daily Beast.