- The newly launched ratings firm CORE3 has assigned a ‘DDD’ risk grade to the Trump family-linked crypto project World Liberty Financial (WLFI).
- WLFI’s score of 68.01 indicates a high probability of user loss, placing it among the 50 riskiest projects on the platform alongside other poor performers like RealT.
- The firm, launched by the HAI Group behind Hacken, aims to pressure crypto projects to improve security and transparency, scoring 1,426 projects and 253 exchanges.
- Key risks for the $2.8 billion World Liberty Financial platform include a lack of continuous onchain monitoring, no structured bug bounty program, and a token structure where insiders hold the majority.
- CORE3 differentiates itself by making its scoring methodology public and will consider industry feedback to refine its assessments, stating it is “not the final word”.
On Thursday, the new cryptocurrency risk ratings agency CORE3 officially launched, immediately flagging the high-profile World Liberty Financial project, associated with the Trump family, as one of the industry’s riskiest investments.
It received a DDD grade with a 68.01 probability of loss score, placing it among the bottom 50 projects on the platform. Consequently, this highlights significant security and transparency concerns for a major DeFi platform valued at approximately $2.8 billion.
The firm, created by the HAI Group which also owns security firm Hacken, assesses the likelihood users could lose funds. CORE3 CEO Dyma Budorin told DL News that “the industry still suffers from all the same problems it had when I joined in 2017.”
Budorin argued many projects prioritize fast profits over risk management, stating “We need to put pressure on them.” Meanwhile, the platform has assigned numerical risk ratings to 1,426 crypto projects and 253 exchanges based on publicly available data.
Lower scores correspond to safer A and B letter grades, while higher scores like WLFI’s indicate greater risk. The launch comes as traditional finance institutions seek more risk profiling before investing in crypto, a need CORE3 aims to fill.
While other crypto ratings agencies like Credora and Metrika exist, CORE3 claims to be the only one with a completely public scoring system. Some projects, such as Sky, have previously paid to receive a debt rating from S&P Global Ratings.
CORE3 identified several critical failures at World Liberty Financial, including a lack of continuous onchain monitoring and a structured bug bounty program. Furthermore, the project’s token structure, where insiders own most tokens, presents another major risk.
Budorin anticipates criticism and welcomes industry feedback to improve the firm’s methodology. He emphasized the firm’s adaptability, saying, “If a change to our methodology makes sense we will do it.”
World Liberty Financial did not immediately return a request for comment on the low rating. Tim Craig is DL News’ Edinburgh-based DeFi Correspondent.
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