World Liberty Financial, the Ethereum-based cryptocurrency platform backed by the Trump family, has completed its first large-scale airdrop, distributing millions of stablecoins to tens of thousands of user wallets. This event is not only a way to distribute assets but also an important test for the platform's upcoming DeFi services.
Last Wednesday, #WorldLibertyFinancial airdropped 47 USD worth of its stablecoin USD1 to all cryptocurrency wallets holding any amount of the project's governance token WLFI. According to on-chain data, approximately 85,300 Ethereum wallets received USD1, bringing the total value of this airdrop to over 4 million USD. Notably, cryptocurrency users in certain jurisdictions, including New York, were excluded from the airdrop for legal reasons.
Airdrops are a popular mechanism used by cryptocurrency projects to reward early token holders and encourage adoption. For WLFI, this is particularly important because WLFI is currently not tradable and only allows holders to vote on governance proposals of World Liberty. The airdrop #USD1 is also designed to test the platform's airdrop mechanism and 'ensure the functionality and readiness of the smart contract.'
Since its launch in September last year, World Liberty has gradually built its products, including #WLFI and USD1. However, they have yet to launch the long-promised core functionality: a decentralized finance (DeFi) protocol that provides users with cryptocurrency lending and borrowing services along with other trading services. This caution is not only related to technical complexity but also to legal issues. In the past, DeFi protocols in the United States have faced legal threats from the SEC and IRS.
However, with former President Donald Trump – whose family holds a significant stake in World Liberty – taking steps to reduce these barriers, the full deployment of the World Liberty platform may be imminent. The project has hinted at the possibility of making the WLFI token tradable, an important step towards launching its DeFi services. This is a positive signal indicating the growth potential of DeFi applications and the involvement of major institutions in the cryptocurrency space.
Investing in cryptocurrency carries high risks due to significant price volatility.