How a New Crypto Token Catapulted the Trump Family’s Wealth by $5 Billion

A new cryptocurrency has emerged from the Trump family’s company, World Liberty Financial. This token, named WLFI, sparked significant interest when it launched this week, briefly pushing the family’s paper wealth up by about $5 billion. However, it quickly faced a price drop, declining from a high of 40 cents to around 21 cents shortly after its debut. By Tuesday afternoon, it had slightly recovered to roughly 23 cents.

Despite the price fluctuations, the Trump family’s holdings in WLFI, totaling 22.5 billion tokens, still signify a substantial asset on paper. However, they can’t sell their tokens just yet, as these are locked for now.

Trump’s Shift on Cryptocurrency

Once a critic of digital currencies, former President Trump has recently embraced them. He aims to position the U.S. as “the crypto capital of the world.” This shift is evident in his June signing of the Genius Act, which set the first federal regulations for “stablecoins,” a type of cryptocurrency pegged to stable assets like the U.S. dollar.

Watchdog groups and some Democratic lawmakers have raised red flags over potential conflicts of interest due to the family’s ties to World Liberty Financial. In response, White House press secretary Karoline Leavitt defended the family, arguing that media scrutiny often misrepresents their actions.

Understanding WLFI

WLFI is more than just another token. It offers holders a say in governance issues at World Liberty Financial. The company emphasizes that WLFI isn’t meant for speculative investment, aiming to avoid being treated as a money-making asset.

Nic Puckrin, CEO of Coin Bureau, noted that WLFI’s initial price changes are typical for new tokens. He indicated that early enthusiasm often leads to price spikes, followed by profit-taking, which can result in declines. He believes WLFI’s drop is moderate compared to other tokens, with initial investors still enjoying returns from prior private sales.

Insider Ownership and Governance

Currently, the Trump family and a few insiders own over 20% of WLFI tokens. However, to prevent any single entity from dominating, World Liberty Financial has set a cap, allowing no more than 5% governance power per wallet.

Other Crypto Ventures

The Trump family’s involvement in crypto doesn’t stop at WLFI. Their $TRUMP meme coin drew attention after offering top holders a chance to dine with Mr. Trump. Investors committed around $140 million for this opportunity, leading to concerns about potential influence and access connected to Trump.

Despite initial excitement, the value of the $TRUMP coin has fluctuated significantly, dropping from a recent peak of about $15 to around $8.30. Meanwhile, Trump Media & Technology Group has also ventured into crypto, acquiring around $2 billion in cryptocurrencies to pivot its business model.

Conclusion

The landscape of cryptocurrency is ever-changing, and the Trump family’s ventures are no exception. With regulatory developments and market dynamics influencing these digital assets, observers continue to watch how WLFI and related projects unfold in the coming months.

For more about cryptocurrencies and their impact, check out CoinMarketCap and the White House’s fact sheets.

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Cryptocurrency, Donald Trump