SkyBridge Capital’s Scaramucci Labels Trump’s World Liberty Financial as a Money Scam

Anthony Scaramucci, a managing partner at SkyBridge Capital, has criticized Donald Trump's new crypto venture, World Liberty Financial (WLF).

Scaramucci claims the crypto project and his social media platform Truth Social are barely sources of revenue for Trump.The SkyBridge founder warned the public against investing in the project, describing it as a full-on scam."

Scaramucci Criticizes Trump's New Crypto Venture

During Stellar's Meridian 2024 conference in London, Anthony Scaramucci made disturbing claims about the Trump-backed DeFi project World Liberty Financial.

What do you think about Trump's new crypto coin?

Is it a "full on scam"? $WLFI

Anthony Scaramucci shares DISTURBING take on Donald Trump's World Liberty Financial DeFi project: pic.twitter.com/STHAsRWmzl

- Altcoin Daily (@AltcoinDailyio) October 17, 2024

He labeled the project, which recently launched its token sale, an apparent scam designed to raise funds for Trump's gain.

Scaramucci questioned the motive behind the project. He doubts whether WLF can help attract crypto-focused voters to support Trump in the upcoming election.

Scaramucci says no core Bitcoin proponent would consider WLF a plus to Trump's campaign. His remarks reflect the crypto community's growing skepticism and concerns about Trump's approach to blockchain technology and cryptocurrency.

Meanwhile, World Liberty Financial started publicly selling its native token, WLFI, on Tuesday. The project has already raked in millions of dollars from the sales. It plans to raise $300 million by selling 20% of the WLFI token supply to attain a $1.5 billion valuation.

Trump has repeatedly promoted the new venture via his social media platform and X. In his recent X post, Trump encouraged people to invest in the project, touting the token sale as a chance to reshape the future of finance.

.@WorldLibertyFi Token Sale goes live on Tuesday morning, October 15th! This is YOUR chance to help shape the future of finance. Be there on Monday, October 14th at 8 AM EST for an Exclusive Spaces to learn more. Join the whitelist today and be ready for Tuesday:...

- Donald J. Trump (@realDonaldTrump) October 12, 2024

Trump Criticized for Launching Crypto Venture Dubbed World Liberty Financial During Election Season

Donald Trump's move to launch World Liberty Financial has attracted significant criticism from US politicians and crypto proponents alike. Many believe he should be focused on his campaign to win the election rather than launching a crypto project.

One X user @4HumanUnity tagged the new DeFi project as a university-level scam. They noted that it's full of red flags and could hurt the US economy instead of helping it.

Furthermore, the X user highlighted several red flags of Trump's project. These included shady operations, security vulnerability due to its connection with Dough Finance, lack of utility, potential legal troubles with the SEC, and dubious schemes.

Some crypto community members find the method of launching World Liberty Financial questionable. One X user said creating a token with presale and whitelisting participants sparks concerns about security law violations.

I like that you support CRYPTO but creating your own token with a pre-sale and whitelisting people is going to be ...... questionable in security issues by SEC

- Lola (@CryptoLollla) October 12, 2024

Industry Leaders Voice Concerns

Additionally, prominent crypto industry figureheads, including billionaire entrepreneur Mark Cuban, have voiced concerns about Trump's new venture.

that's true, but if it leads to bad regulations it will negatively affect me personally, and it has no purpose for anyone other than rich to get richer so it's pretty hard to support someone who does something like that

- Shibetoshi Nakamoto (@BillyM2k) October 13, 2024

Cuban didn't explicitly criticize World Liberty Financial. However, he questioned why the former US president would go to such lengths when he has people like Elon Musk funding his campaign.

Billy Markus, the founder of Dogecoin, also condemned the move. Markus described Trump's involvement in the token sale as one of the most foolish things anyone running for the US presidency would do.

this is one of the stupidest possible things he could do if he wants to be president imo

- Shibetoshi Nakamoto (@BillyM2k) October 13, 2024

Similarly, the CEO of Web3 development platform Hiro, Alex Miller, said the WLFI token is an apparent pump-and-dump scheme. He said the project could threaten the credibility of the crypto industry.

Miller noted that while Trump's project may not end up as an outright scam, it could still reflect poorly on the crypto industry.

Should World Liberty Financial crumble or lead to investor losses, it could severely tarnish the reputation of digital assets and the broader crypto market, hampering mainstream adoption of cryptocurrency.

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