Trump crypto projects have always been intriguing, but this time it’s not just speculation or NFTs, but a new initiative aimed at the unbanked. Former President Donald Trump recently announced the launch of a cryptocurrency platform called “The DeFiant Ones,” which aims to shake up the financial sector. However, details remain vague, leaving many wondering about the platform’s true function.
The DeFiant Ones: A bold move or another Trump crypto project?
The announcement, shared on Trump‘s Truth Social account, was light on details but heavy on rhetoric. Trump and his sons hinted that the platform would focus on unbanked communities, giving them access to financial services traditionally controlled by big banks. “Average Americans have been squeezed by big banks and financial elites for far too long,” Trump said in a crypto post.
On social media, Trump shared a link to a Telegram channel that claims to be the platform’s official communications hub. Posts on the channel date back to mid-August, but none clarify the nature of the project. It is unknown whether DeFiant Ones will operate as a decentralized autonomous organization (DAO), a cryptocurrency, a trading platform, or even a blog. Potential users and investors are currently left in the dark as to what they are signing up for.
The choice of the name “The DeFiant Ones” seems to be a play on the concept of decentralized finance, or DeFi. DeFi is lauded for offering financial services without traditional intermediaries like banks, which fits in with Trump’s rhetoric of taking on the financial elite.
The potential – or lack thereof – of crypto for financial inclusion
The idea of using cryptocurrency to help unbanked communities is not new, but its effectiveness is controversial. Reports such as the Center for American Progress (CAP) argue that there is no strong evidence to support the claim that crypto transactions are more affordable or accessible than traditional financial services. CAP suggests that encouraging low-income individuals to invest in volatile assets like cryptocurrencies could do more harm than good.
Eric Trump (Donald’s son), one of the key figures in promoting The DeFiant Ones, mentioned that the platform could provide instant financial services based on mathematical algorithms instead of traditional banking policies. He pointed out that many Americans are often turned down by banks when they apply for loans. But history reminds us that not all Trump-branded initiatives, such as Trump University, have lived up to their claims.
Trump crypto platform evolves
Interestingly, Trump‘s stance on cryptocurrency has changed over the years. Once dismissing digital currencies as a scam, Trump has now embraced them, possibly due to the growing influence of the crypto community within his base. This shift is evident in his association with The DeFiant Ones and his past attendance at Trump crypto-related events, such as the Bitcoin Conference in Nashville.
Financial disclosures show that Trump has between $1 million and $5 million in a virtual Ethereum key and has made millions of dollars selling NFTs. But despite these numbers, the broader success of crypto ventures remains in question. For example, the value of Trump’s NFTs plummeted shortly after they were launched, with trading volumes falling by 2023 percent as of April 99.
While the new company has yet to be fully disclosed, Trump’s history with financially oriented ventures raises suspicions. His previous ventures, including Trump University, have faced legal challenges and allegations of fraud. While Trump Crypto is being presented as a way to empower unbanked Americans, some fear it could follow in the footsteps of past initiatives that failed to deliver on their promises.
Featured image credit: History in HD / Unsplash
