With the upcoming U.S. presidential election in less than a week, reports suggest that World Liberty Financial (WLF), a cryptocurrency project affiliated with former President Donald Trump, is getting ready to introduce its own stablecoin pegged to the value of the U.S. dollar.
Insiders indicate that although the stablecoin is currently in the development phase, its launch might face delays.
Insights shared with Decrypt reveal that the team’s top priority is ensuring safety and compliance with regulations before bringing the stablecoin to the market.
It is worth mentioning that Rich Teo, a co-founder of the stablecoin issuer Paxos, was recently appointed by WLF, hinting that the project’s shift towards a stablecoin has been in progress for some time.
Trump’s WLFI Coin Introduction
This new undertaking follows the earlier release of the WLFI token. The project initially targeted over 100,000 accredited investors with ambitious goals to raise $300 million through the initial token sale.
However, as per CryptoCrypto, the initiative did not meet expectations, only generating $14 million, with merely 4.7% of the tokens sold.
Despite this setback, WLF remains steadfast in its aspirations. In a recent governance proposal, the project outlined its plans to establish a new Aave v3 (AAVE) instance on the Ethereum (ETH) mainnet, with a focus on stablecoin liquidity.
Furthermore, it includes a revenue-sharing mechanism aimed to expand Aave’s user base and encourage new DeFi participants.
Whales Showing Confidence in Trump’s Victory
Amid these developments, data from Lookonchain indicates that significant investors are placing substantial bets on Trump’s potential success in the 2024 U.S. presidential election on the prediction platform, Polymarket.
One notable whale (0x94a428cfa4f84b264e01f70d93d02bc96cb36356) recently invested $1 million USDC, supplementing the existing $5 million allocated to shares favoring Trump’s election victory.
Similarly, another whale (0xd235973291b2b75ff4070e9c0b01728c520b0f29) reportedly withdrew over $2 million USDC from Binance for pro-Trump bets, bringing the whale’s total investment to $7.22 million.
Election Prediction Markets: Trump vs. Harris
Data from Polymarket indicates that Trump currently holds a 66.1% chance of winning the upcoming election, while Vice President Kamala Harris trails behind with a 34.0% possibility.
With a potential Trump-affiliated stablecoin on the horizon, the financial sector could witness further intersections between political influence and cryptocurrency as World Liberty Financial navigates the intricate regulatory landscape.