Support for Donald Trump and his family’s cryptocurrency project, World Liberty Financial (WLFI), is steadily increasing. Justin Sun, the founder of Tron, has made significant investments in WLFI, and Frax Finance, a decentralized stablecoin protocol, is also considering investing in the project.
Frax Finance has expressed its intention to invest up to $10 million in the Trump-led WLFI and has submitted a management offer on its official website. The proposal includes an additional $5 million investment, which is contingent upon the success of the initial $5 million investment.
The proposal emphasizes the importance of FRAX taking a leading role in US-based decentralized finance (DeFi) projects, given the commitment of the newly elected Trump administration to this sector. WLFI, being Trump’s only DeFi project, is seen as an ideal partner to accomplish this objective. President Trump envisions making the US a global leader in cryptocurrency, with WLFI playing a crucial role in the realization of his goals. Approving the investment in WLFI would allow FRAX to expand its adoption, enhance its visibility, and secure its position in the upcoming phase of US DeFi growth.
However, there are concerns about the risk associated with investing $5 billion in a project without a proven track record, as expressed by one community member in response to the proposal.
It is worth noting that Stephen Moore, a co-founder of Frax Finance, previously served as an economic advisor to Donald Trump.
*This translation does not constitute investment advice.
