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Trump Threatens To Sue JPMorgan For Debanking Him

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President Donald Trump has threatened to sue JPMorgan Chase over allegedly debanking him following the January 6, 2021 riot at the US Capitol.

“I’ll be suing JPMorgan Chase over the next two weeks for incorrectly and inappropriately DEBANKING me after the January 6th Protest, a protest that turned out to be correct for those doing the protesting,” Trump said in a social media post. 

In August, Trump signed an executive order requiring banks to ensure they are not refusing financial services to clients based on religious or political beliefs, a practice known as debanking.

Trump claimed he was personally discriminated against by banks, with JPMorgan Chase and Bank of America refusing to accept his deposits after his first term in office. At the time, JPMorgan said it does not close accounts for political reasons.

Trump and Family Turn To Crypto

After claiming that some of America’s biggest banks cut them off from services, Trump and his sons have pushed further into the world of crypto.

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“We got into crypto because we were debanked,” Donald Trump Jr. said in a Fox News interview last year. “We had to come up with solutions,” he continued, adding that crypto was the most efficient way to go and “absolutely the future of banking.”

The Trump family is moving to take over TradFi services using crypto.

Trump-backed World Liberty Financial, a borrowing and lending platform that runs on Ethereum, has its own stablecoin, USD1, and wants institutions and everyday people to be use the digital token for payments.

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Crypto World

WLFI to Offer More Incentives for Token Holders Who Use USD1

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WLFI to Offer More Incentives for Token Holders Who Use USD1

Trump family-backed crypto venture World Liberty Financial (WLFI) has proposed new measures to boost participation in governance through a staking system and incentivize the use of its stablecoin USD1.

In its latest proposal on Wednesday, the team suggested governance votes should require holders to stake their tokens for at least 180 days to ensure “voting power is held by participants with long-term alignment to the protocol,” instead of “short-term holders or speculators.”

Stakers would earn an annual percentage rate of 2% provided they participate in at least two governance votes during the lock-up period. Governance power would be based on the amount staked and the time left in the lock-up. Users with locked tokens can continue to vote as usual.

Source: World Liberty Financial

Incentives for USD1 usage on the table too 

WLFI has been trying to increase USD1 adoption since it launched through rewards programs and partnerships with institutional platforms and other protocols. 

As part of the staking system, the WLFI team said users who stake their tokens would also gain “additional benefits for USD1 usage,” with USD1 deposits made on the trading and lending platform WLFI Markets attracting unspecified “incentives” from the DeFi protocol Dolomite.

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At the same time, “Nodes,” holders with at least 10 million WLFI tokens, will gain access to providers who offer conversion of other stablecoins like USDC (USDC) and USDt (USDT) into USD1 at a 1:1 rate and can provide an off-ramp directly to fiat. 

“Super Nodes,” or holders with more than 50 million WLFI tokens, will also have access to the feature.

World Liberty Financial is offering incentives for token holders to stake and participate in governance decisions. Source: World Liberty Financial 

For the vote to be valid, the WLFI team has set the bar at one billion voting tokens participating, with a majority voting in favor required for it to pass. CoinGecko lists over 27 billion WLFI tokens in circulation.

If approved, the rollout will be in three phases: starting with staking rewards and USD1 deposit incentives, followed by the 1:1 conversion feature and lastly partnership access and a revenue-sharing framework for “Super Nodes.”

Related: Trump crypto company says ‘coordinated attack‘ on stablecoin failed

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Stablecoin market dominated by USDC and USDT

The total market capitalization for stablecoins is over $309 billion as of Thursday, according to DeFi aggregator DefiLlama. USDT has the largest market cap with over $183 billion and a market dominance of 59%.

Circle’s USDC is the second-largest stablecoin by market cap, with $75 billion. WLFI’s USD1 is the fifth-largest stablecoin with a $4.7 billion market cap.

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