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The Protocol: Crypto Turns Up Nose at Trump Token Sale, 'Gold Paper'

Crypto traders and industry executives have expressed favor toward Republican U.S. presidential candidate Donald Trump's policies on Bitcoin and digital assets. That predisposition has not translated to a fondness for the decentralized-finance project he is actively promoting, World Liberty Financial, or its WLFI tokens – as he found out this week. (Spoiler alert: The tokens are not exactly flying off the shelf.)ALSO:UnmuteBitcoin Jumps Above $67K to Nearly a Three-Month High

02:04Tesla Is Moving Bitcoin; Trump-Supported Token Falls Flat11:08MoneyGram Announces Its Latest: MoneyGram Wallet01:31Bitcoin ETFs Are "Trojan Horse for Adoption": Bernstein02:28Trump Pumps DeFi Token Sale; Bitcoin Price Jumps Above $65K
  • Kamala Harris's "opportunity agenda" falls short on crypto-policy details.
  • Bitcoin's ecosystem is creeping not leaping, argues Coinbase's research chief.
  • Answering questions you didn't know you needed to ask about decentralized exchange Uniswap's new layer-2 chain.
  • A new way of ranking blockchain oracle projects – with a different result.
  • Tesla's bitcoin transfers.
  • $76 million of blockchain project fundraisings.
  • Top picks from the past week's Protocol Village column: Karate Combat, Hedera, Nexus, RootstockLabs, BitVMX, The Depository Trust & Clearing Corporation (DTCC), Ben Rubin, Towns.

This article is featured in the latest issue of The Protocol, our weekly newsletter exploring the tech behind crypto, one block at a time. Sign up here to get it in your inbox every Wednesday.Network NewsScreenshot from title page of World Liberty Financial's "Gold Paper," published this week (World Liberty Financial)

SMALL HANDS? A crypto project endorsed by U.S. Republican presidential nominee Donald Trump pushed forward with a plan to raise hundreds of millions of dollars by selling tokens. But demand for World Liberty Financial's WLFI tokens proved underwhelming, with an Ethereum wallet connected to the effort holding crypto proceeds of just $11 million as of press time, or roughly 3.6% of the amount allocated to the public sale – not even enough to cover a reserve for basic expenses.Loyal readers of The Protocol will recall that CoinDesk was first to report, in early September, on the secret planning for World Liberty Financial – mostly confirmed a couple weeks later. We also chronicled the dismay over the project from hardcore Bitcoiners, who typically hate the idea of selling easily minted tokens, prompting some of them to reconsider their political support for Trump.

Finally, last week, official details of what the project actually is, or aims to be, began to emerge: Still to be developed and launched, it's a "best-in-class consumer application," distinguished by "simple onboarding and familiar UI/UX via one-click social login and wallet creation," according to a blog post. (UI/UX is shorthand for user interface and user experience.) Under the hood, the project plans to operate an instance of the decentralized-finance (DeFi) project Aave atop the Ethereum blockchain, with plans to eventually deploy on the layer-2 network Scroll, according to the blog. World Liberty Financial even posted a "temperature check" proposal to the Aave governance discussion forum to gather community feedback. One commenter inquired aloud whether the deal made sense for Aave, given that the Trump-affiliated project would promise 20% of revenue to Aave, "compared to 100% from the main Aave instance," and added that "it’s worth evaluating whether this might lead to internal competition between Aave’s current market and WLF’s, or if the growth from new users and increased liquidity will far exceed any potential downside." One snarky poster wrote that "the irony of a man notorious for not paying back creditors launching a decentralized lending protocol is almost too good to be true."

Several notable crypto figures joined a Spaces session on X on Monday to promote the token launch, including Stani Kulechov, founder of Aave; Sandy Peng, co-founder layer-2 network Scroll; and Luke Pearson, senior research cryptographer, Polychain Capital. "My DM's have been blowing up since this project happened," Scroll's Peng volunteered. Project officials said on the Spaces that some 100,000 users had already been whitelisted to claim the tokens.

Additional details came on Tuesday when the project released a "Gold Paper" with lots of fine print, including the revelation that the initial $30 million of "net protocol revenues" – including token sale proceeds – would be set aside to cover "expenses, indemnities and obligations" – and that most of the rest of the money would go to a company called "DT Marks DEFI LLC," whose owners and principals include Donald Trump. (That company also was allocated 22.5 billion $WLFI tokens, worth about $337 million at the fixed price of $0.015 each.)

The public token sale opened early in U.S. business hours on Tuesday, though the website for claiming the tokens quickly crashed and was down for most of the morning; there was virtually no communication from the team about what was happening. Commenters on the social-media site X widely noted that the token was "non-transferrable," seen as a serious drawback for fast-moving crypto trading types. At about 7 p.m. ET, Trump took to X to tout the token sale, writing "Today’s the day! @WorldLibteryFi token sale is live." After apparently discovering that World Liberty Financial's X handle had been misspelled, the post was deleted, and then reposted with the properly spelled handle, @WorldLibertyFi.

The extra promotion didn't appear to have much of an impact, with sales continuing at a trickle. As of Wednesday, some 761.8 million tokens have been sold, out of 20 billion offered, according to a dashboard on the crypto-tracking website Dune Analytics.

Dave Rodman, founder and managing partner of Rodman Law Group, who counts digital-assets and venture capital among his practice areas, told CoinDesk in an emailed comment that World Liberty Financial appears fraught with both securities-regulation and campaign-finance risks – "a joke project designed to extract value from purchasers in a very cynical manner whose principals will likely not face any real consequences and in the worst scenario, only serve to hurt this industry’s reputation in the long run." Here was the Bankless newsletter's take: "Whether the project can overcome skepticism and regain momentum remains to be seen, but the rocky start is a reminder that high-profile backers aren’t a guarantee for success in DeFi."

It's important to note here that the team behind World Liberty Financial has not responded to CoinDesk's repeated requests for comment over the past two days.ELSEWHERE:

  • Vice President Kamala Harris touted her "opportunity agenda" during a campaign speech on Monday without elaborating on what it would mean for digital assets. Earlier in the day, the campaign unveiled the broad agenda, which included the first thing resembling a substantive policy position from her on cryptocurrencies. But anyone hoping for more details from her speech in Erie, Pennsylvania, was left disappointed.
  • Tigran Gambaryan, the crypto exchange Binance's head of financial crime compliance, who has been detained in Nigeria since February, was denied bail by a judge in the country, a family spokesperson said Friday. He has been in the notorious Kuje prison, facing charges including money laundering.
  • A British man who says he accidentally threw out a hard drive in 2013 containing $527 million worth of bitcoin has filed a legal claim against a local council in Wales in an attempt to retrieve the device from a dump, according to news website WalesOnline. James Howells, 39, alleges he has made requests to Newport Council – proprietors of the landfill where the hard drive ended up – but has been "largely ignored."
  • Coinbase Head of Research David Duong published a lengthy report on Bitcoin's blooming ecosystem of layer-2 networks, designed to accommodate faster and cheaper transactions, as well as greater programmability. But the report cautioned that "many of these protocols are in their early development stages, so we think it will likely take time for their utility in the Bitcoin ecosystem to be fully realized." He wrote that "many of the network’s L2s are mainly sourcing capital from among crypto natives within the Bitcoin ecosystem, while the lion's share of bitcoin unsurprisingly still remains on the L1. Moreover, bitcoin accumulation is happening more and more via spot bitcoin ETFs and other exogenous sources."
  • Ethereum suffers from "middle-child syndrome," Zaheer Ebtikiar of Split Capital wrote on X. "The asset is not in vogue with institutional investors, the asset lost favor in crypto private capital circles, and retail is nowhere to be seen bidding anything at this size."
  • JUST IN: Crypto Usage Setting Records Amid Regulatory Uncertainty, A16z Says in Report

Uniswap's New Layer-2 'Unichain' on OP Stack: Industry ReactionsUniswap Labs CEO Hayden Adams (Uniswap Labs)The developer behind Uniswap, the biggest decentralized exchange, announced plans for Unichain, its own layer-2 network atop Ethereum, built with technology borrowed from the Optimism ecosystem. We rounded up some of the commentary.

  • Per Messari's Kinji Steimetz: "Unichain can't incentivize liquidity through traditional means since the token has already been released, eliminating the possibility of airdrop farming for TVL…. The most plausible path for Unichain to gain traction could be something akin to the Base launch, where people bridged over to chase early memecoin opportunities. With Unichain, UNI now has a potential path to monetization as an L2 token."
  • Per Coinbase Research: "The network is designed to facilitate 'seamless multi-chain swapping' among Superchain L2s while supporting ERC-7683 to enable broader interoperability for non-Superchain L2s. But the documentation provided by Uniswap doesn’t detail an explicit plan for how it will migrate existing liquidity from the Ethereum base layer to the new L2, nor does it confirm whether this is even necessary for Unichain’s immediate strategy."
  • Eric Waisanen, cofounder of Astrovault, an automated market maker, wrote in an op-ed for CoinDesk that, "Despite the platform’s continued success and prominence within DeFi, serious questions remain about the sustainability of its business model and those of similar automated market makers (AMMs)."
  • DeFi Report founder Michael Nadeau noted that "instead of paying $368 million in settlement fees to Ethereum validators, Uniswap Labs and potentially UNI holders would capture all that value when they launch on Unichain," according to a story by Unchained.

Money CenterFundraisings

  • Predicate, a project to build a "network for simplifying transaction prerequisites," has raised $7 million led by 1kx and Tribe Capital. According to a thread on X: "As was the case for apps like Venmo and Uber, pre-transaction rules become a critical building block as Web3 apps scale into the broader global economy. Predicate brings this concept on-chain, offering a library of prerequisites enforceable in a trust-minimized way. At the core of our system is the Predicate function, which evaluates conditions and returns true or false, deciding whether an onchain action can proceed. Predicates are the foundation for rules, which are stacked to form policies. Any entity – individuals, DAOs, organizations – can create and manage policies, which use both onchain and offchain data like flow-of-funds, allowlists, and verifiable credentials."
  • Others (Details in Protocol Village column): Ithaca ($20M), Solv ($11M), PiP World ($10M) Mento ($10M), Yala ($8M), Apex Fusion ($6M), Blockcast ($2.85M), Moonveil ($2M)

Deals and grantsKadena's Alana Ackerson (Kadena)

Data and Tokens

Regulatory and Policy

Who's the Biggest Blockchain Oracle? It DependsComparison of market-share rankings for oracle projects based on total value secured (left) and total transaction value (Blockworks Research)

A recent Blockworks Research report on blockchain oracle projects was brought to our attention, showing different ways of ranking them – and how starkly different the results can be.Oracles are crucial for DeFi systems because they deliver off-chain information – such as cryptocurrency prices – onto blockchains, where it can be read and processed by decentralized applications and smart contracts.

One thing to note here is the huge disclaimer that the Blockworks research was funded by Pyth Data Association, an organization supporting the blockchain oracle project Pyth, which clearly benefits from the report's conclusions.The report notes that "total value secured," or TVS, has historically been the most popular way of ranking these projects. The metric is described as "how much value is secured by each oracle, which is the equivalent to the total pool of value that would be lost if an oracle malfunctioned or reported incorrect prices in a worst case scenario."

"TVS, at best, measures a pool of financial assets associated with an oracle’s services, but completely eschews the application’s activity associated with an oracle," according to the author, Ryan Connor.An alternative metric is total transaction value, or TTV, which is "more strongly correlated to frequency of oracle price updates and therefore oracle revenue," according to Connor."We think the flaws in TVS, combined with the increasing demand for speed in DeFi ecosystems, and the necessity of DeFi to compete with centralized exchanges, makes TTV the most useful, publicly available key performance indicator for assessing oracle fundamentals today," the report concludes.

Protocol Village Top picks of the past week from our Protocol Village column, highlighting key blockchain tech upgrades and news.Karate Combat's Tech Hustler and Tactical Investing fight at CoinDesk Consensus in May 2024 in Austin, Texas. (Shutterstock for Consensus)

Karate Combat, a Web3-enhanced professional contract sports league, is launching UP, a layer-2 blockchain and crypto-native software licensing platform built on Hedera in Q1 2025, according to the team. "Partners on UP can clone, customize and launch KC’s native mobile apps with no licensing fee. The $UP token is expected to launch in 2025." According to a press release: "The software stack includes native iOS and android mobile apps, a web app and an on-chain backend."Nexus, developer of a zero-knowledge virtual machine zkVM written in Rust, says it has launched the first beta release of the Nexus network, "the world’s first open prover network." According to the team: "This is the first distributed zero knowledge VM-based prover network that is accessible to anyone. The network aggregates the collective power of any connected device, from massive GPU farms to your computer or phone. Our goal is to unite the world’s computers into a single supercomputer that will be able to prove all the Internet’s computations, unlocking the Verifiable Internet."Sergio Lerner, chief scientist at RootstockLabs, announced that development has begun on Union, a new permissionless and trust minimized bridge based on BitVMX and the disputable computing paradigm. According to the team: "In addition, it was confirmed that the full codebase for BitVMX will be open sourced as a gift to the Bitcoin community. BitVMX unlocks a whole host of new use cases for Bitcoin, including the creation of new Bitcoin L2 light clients, zero-knowledge contingent payments and autonomous bug bounty programs. These announcements were made on stage during Bitcoin Amsterdam."The Depository Trust & Clearing Corporation (DTCC), a post-trade market infrastructure for the traditional financial industry, unveiled "DTCC Digital Launchpad," described as "an industry sandbox intended to bring together financial market participants and clear the path to scalable adoption of digital assets. As an open ecosystem, DTCC Digital Launchpad will feature market participants, technology providers and others working together to identify and collaborate on meaningful pilots that have a clear path to production. “We’ve reached a critical inflection point in the adoption of digital asset technology,” said Nadine Chakar, global head of DTCC Digital Assets."Ben Rubin, the former founder of HouseParty and Meerkat, has launched Towns, a decentralized messaging platform built on the River Protocol. According to the team: "Towns enables secure, permissionless group chats designed for digital communities, allowing users to own and manage their spaces. Key features include end-to-end encryption, decentralized ownership, and a reputation system that prioritizes privacy. Backed by a16z, Towns aims to blend the user-friendly experience of Web2 messaging with the incentives of Web3, offering a secure alternative to traditional platforms often criticized for privacy concerns."

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  • 17.07.24 02:26 thompsonrickey

    In the vast and often treacherous realm of online investments, I was entangled in a web of deceit that cost me nearly  $45,000. It all started innocuously enough with an enticing Instagram profile promising lucrative returns through cryptocurrency investment. Initially, everything seemed promising—communications were smooth, and assurances were plentiful. However, as time passed, my optimism turned to suspicion. Withdrawal requests were met with delays and excuses. The once-responsive "investor" vanished into thin air, leaving me stranded with dwindling hopes and a sinking feeling in my gut. It became painfully clear that I had been duped by a sophisticated scheme designed to exploit trust and naivety. Desperate to recover my funds, I turned to online forums where I discovered numerous testimonials advocating for Muyern Trust Hacker. With nothing to lose, I contacted them, recounting my ordeal with a mixture of skepticism and hope. Their swift response and professional demeanor immediately reassured me that I had found a lifeline amidst the chaos. Muyern Trust Hacker wasted no time in taking action. They meticulously gathered evidence, navigated legal complexities, and deployed their expertise to expedite recovery. In what felt like a whirlwind of activity, although the passage of time was a blur amidst my anxiety, they achieved the seemingly impossible—my stolen funds were returned. The relief I felt was overwhelming. Muyern Trust Hacker not only restored my financial losses but also restored my faith in justice. Their commitment to integrity and their relentless pursuit of resolution were nothing short of remarkable. They proved themselves as recovery specialists and guardians against digital fraud, offering hope to victims like me who had been ensnared by deception. My gratitude knows no bounds for Muyern Trust Hacker. Reach them at muyerntrusted @ m a i l - m e . c o m AND Tele gram @ muyerntrusthackertech

  • 18.07.24 20:13 austinagastya

    I Testify For iBolt Cyber Hacker Alone - For Crypto Recovery Service I highly suggest iBolt Cyber Hacker to anyone in need of bitcoin recovery services. They successfully recovered my bitcoin from a fake trading scam with speed and efficiency. This crew is trustworthy, They kept me updated throughout the procedure. I thought my bitcoin was gone, I am so grateful for their help, If you find yourself in a similar circumstance, do not hesitate to reach out to iBolt Cyber Hacker for assistance. Thank you, iBOLT, for your amazing customer service! Please be cautious and contact them directly through their website. Email: S u p p o r t @ ibolt cyber hack . com Cont/Whtp + 3. .9 .3. .5..0. .9. 2. 9. .0 .3. 1 .8. Website: h t t p s : / / ibolt cyber hack . com /

  • 27.08.24 12:50 James889900

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  • 27.08.24 13:06 James889900

    All you need is to hire an expert to help you accomplish that. If there’s any need to spy on your partner’s phone. From my experience I lacked evidence to confront my husband on my suspicion on his infidelity, until I came across ETHICALAHCKERS which many commend him of assisting them in their spying mission. So I contacted him and he provided me with access into his phone to view all text messages, call logs, WhatsApp messages and even her location. This evidence helped me move him off my life . I recommend you consult ETHICALHACKERS009 @ gmail.com OR CALL/TEXT ‪+1(716) 318-5536 or whatsapp +14106350697 if you need access to your partner’s phone

  • 02.09.24 20:24 [email protected]

    If You Need Hacker To Recover Your Bitcoin Contact Paradox Recovery Wizard Paradox Recovery Wizard successfully recovered $123,000 worth of Bitcoin for my husband, which he had lost due to a security breach. The process was efficient and secure, with their expert team guiding us through each step. They were able to trace and retrieve the lost cryptocurrency, restoring our peace of mind and financial stability. Their professionalism and expertise were instrumental in recovering our assets, and we are incredibly grateful for their service. Email: support@ paradoxrecoverywizard.com Email: paradox_recovery @cyberservices.com Wep: https://paradoxrecoverywizard.com/ WhatsApp: +39 351 222 3051.

  • 06.09.24 01:35 Celinagarcia

    HOW TO RECOVER MONEY LOST IN BITCOIN/USDT TRADING OR TO CRYPTO INVESTMENT !! Hi all, friends and families. I am writing From Alberton Canada. Last year I tried to invest in cryptocurrency trading in 2023, but lost a significant amount of money to scammers. I was cheated of my money, but thank God, I was referred to Hack Recovery Wizard they are among the best bitcoin recovery specialists on the planet. they helped me get every penny I lost to the scammers back to me with their forensic techniques. and I would like to take this opportunity to advise everyone to avoid making cryptocurrency investments online. If you ​​​​​​have already lost money on forex, cryptocurrency or Ponzi schemes, please contact [email protected] or WhatsApp: +1 (757) 237–1724 at once they can help you get back the crypto you lost to scammers. BEST WISHES. Celina Garcia.

  • 06.09.24 01:44 Celinagarcia

    HOW TO RECOVER MONEY LOST IN BITCOIN/USDT TRADING OR TO CRYPTO INVESTMENT !! Hi all, friends and families. I am writing From Alberton Canada. Last year I tried to invest in cryptocurrency trading in 2023, but lost a significant amount of money to scammers. I was cheated of my money, but thank God, I was referred to Hack Recovery Wizard they are among the best bitcoin recovery specialists on the planet. they helped me get every penny I lost to the scammers back to me with their forensic techniques. and I would like to take this opportunity to advise everyone to avoid making cryptocurrency investments online. If you ​​​​​​have already lost money on forex, cryptocurrency or Ponzi schemes, please contact [email protected] or WhatsApp: +1 (757) 237–1724 at once they can help you get back the crypto you lost to scammers. BEST WISHES. Celina Garcia.

  • 16.09.24 00:10 marcusaustin

    Bitcoin Recovery Services: Restoring Lost Cryptocurrency If you've lost access to your cryptocurrency and unable to make a withdrawal, I highly recommend iBolt Cyber Hacker Bitcoin Recovery Services. Their team is skilled, professional, and efficient in recovering lost Bitcoin. They provide clear communication, maintain high security standards, and work quickly to resolve issues. Facing the stress of lost cryptocurrency, iBolt Cyber Hacker is a trusted service that will help you regain access to your funds securely and reliably. Highly recommended! Email: S u p p o r t @ ibolt cyber hack . com Cont/Whtp + 3. .9 .3. .5..0. .9. 2. 9. .0 .3. 1 .8. Website: h t t p s : / / ibolt cyber hack . com /

  • 16.09.24 00:11 marcusaustin

    Bitcoin Recovery Services: Restoring Lost Cryptocurrency If you've lost access to your cryptocurrency and unable to make a withdrawal, I highly recommend iBolt Cyber Hacker Bitcoin Recovery Services. Their team is skilled, professional, and efficient in recovering lost Bitcoin. They provide clear communication, maintain high security standards, and work quickly to resolve issues. Facing the stress of lost cryptocurrency, iBolt Cyber Hacker is a trusted service that will help you regain access to your funds securely and reliably. Highly recommended! Email: S u p p o r t @ ibolt cyber hack . com Cont/Whtp + 3. .9 .3. .5..0. .9. 2. 9. .0 .3. 1 .8. Website: h t t p s : / / ibolt cyber hack . com /

  • 23.09.24 18:56 matthewshimself

    At first, I was admittedly skeptical about Worldcoin (ref: https://worldcoin.org/blog/worldcoin/this-is-worldcoin-video-explainer-series), particularly around the use of biometric data and the WLD token as a reward mechanism for it. However, after following the project closer, I’ve come to appreciate the broader vision and see the value in the underlying tech behind it. The concept of Proof of Personhood (ref: https://worldcoin.org/blog/worldcoin/proof-of-personhood-what-it-is-why-its-needed) has definitely caught my attention, and does seem like a crucial step towards tackling growing issues like bots, deepfakes, and identity fraud. Sam Altman’s vision is nothing short of ambitious, but I do think he & Alex Blania have the chops to realize it as mainstay in the global economy.

  • 01.10.24 14:54 Sinewclaudia

    I lost about $876k few months ago trading on a fake binary option investment websites. I didn't knew they were fake until I tried to withdraw. Immediately, I realized these guys were fake. I contacted Sinew Claudia world recovery, my friend who has such experience before and was able to recover them, recommended me to contact them. I'm a living testimony of a successful recovery now. You can contact the legitimate recovery company below for help and assistance. [email protected] [email protected] WhatsApp: 6262645164

  • 02.10.24 22:27 Emily Hunter

    Can those who have fallen victim to fraud get their money back? Yes, you might be able to get back what was taken from you if you fell prey to a fraud from an unregulated investing platform or any other scam, but only if you report it to the relevant authorities. With the right plan and supporting documentation, you can get back what you've lost. Most likely, the individuals in control of these unregulated platforms would attempt to convince you that what happened to your money was a sad accident when, in fact, it was a highly skilled heist. You should be aware that there are resources out there to help you if you or someone you know has experienced one of these circumstances. Do a search using (deftrecoup (.) c o m). Do not let the perpetrators of this hoaxes get away with ruining you mentally and financially.

  • 18.10.24 09:34 freidatollerud

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