VC Declined Trump Crypto Venture Over Cofounder's Ignorance

In 2024, veteran crypto venture capitalist Nic Carter declined an offer to advise the Trump family's nascent cryptocurrency firm, World Liberty Financial (WLFI), due to cofounder Steve Witkoff's apparent lack of understanding of the crypto space. Carter informed New York magazine that Witkoff, who is also an advisor to the current President, demonstrated a fundamental ignorance of cryptocurrency and decentralized finance (DeFi). Carter stated that Witkoff did not understand what crypto or DeFi were, nor the specific pitch for WLFI, leading Carter to conclude that the venture lacked a concrete product and was solely focused on issuing a token. The situation escalated when Witkoff mentioned Barron Trump's interest in "me-me" coins, a mispronunciation of "memecoins," which Carter identified as the "biggest giveaway" of Witkoff's limited knowledge. Memecoins are a category of cryptocurrencies inspired by viral internet memes and culture.

The anecdote about Witkoff's crypto unfamiliarity emerged as part of a larger investigation by New York magazine into the connections between the Trump family's WLFI venture and controversial crypto billionaire Justin Sun. The origins of WLFI trace back to August 2024, when Donald Trump and his two eldest sons publicly teased a new crypto project on social media under the name World Liberty Financial. One month later, the company released a "Gold Paper," a document analogous to a "white paper" in the crypto industry, which typically outlines a project's foundational principles. This document described WLFI as a decentralized finance initiative designed to "democratize access to financial opportunities." The listed cofounders included Donald Trump, his three sons, and Steve Witkoff, who now serves as the U.S. special envoy to the Middle East. The company also named Witkoff's two sons, internet marketer Chase Herro, and former pickup artist Zak Folkman among its founders.

In January 2025, Donald Trump, who had previously branded himself as a "crypto president" during his campaign, assumed the presidency. Following this transition, both Trump and Witkoff stepped down from their roles at WLFI. The article suggests that the project has faced significant challenges and scrutiny, particularly concerning its ties to Justin Sun and the operational capabilities of its leadership. The venture's attempt to enter the cryptocurrency market was marked by a lack of technical understanding from key figures, raising questions about its viability and the due diligence conducted by potential advisors and investors. The incident highlights the complexities and risks associated with new ventures in the rapidly evolving cryptocurrency landscape, especially when involving high-profile individuals and nascent technologies.