Trump Family Invests Heavily in Crypto Ahead of Policy Shifts

The Trump family has been actively engaging with the cryptocurrency industry, aiming to establish a significant presence ahead of anticipated regulatory changes. This strategic move comes as the industry braces for new policies that could reshape the landscape of digital currencies. The Trump family's involvement is seen as a proactive measure to secure a foothold in what is expected to be a rapidly evolving market.

The Trump family's interest in cryptocurrency is not surprising given the industry's potential for growth and innovation. Cryptocurrencies have gained traction as a viable alternative to traditional financial systems, offering decentralized and secure transactions. The family's eagerness to enter this space suggests a recognition of the industry's transformative potential and a desire to be at the forefront of its development.

The Trump family's involvement in the cryptocurrency industry includes a range of projects, from digital collectibles NFTs to decentralized finance (DeFi) initiatives. In December 2022, former U.S. President Trump entered the crypto space through his personal digital collectibles "Trump" NFT series, which has released four series and brought in millions of dollars in revenue. In September 2024, the Trump family acquired a 60% stake in the DeFi project WLFI through the affiliated company DT Marks DeFi LLC, which has raised $550 million through two rounds of token sales. However, the promised DeFi services such as on-chain lending have not yet been implemented. Companies affiliated with the Trump family receive 75% of net revenue as fees according to the prospectus, including proceeds from token sales. Trump's eldest son, Donald Trump Jr., as well as his other sons Eric and Barron, are listed as "Web3 Advisors" for WLFI.

In January this year, Trump launched two meme coins, TRUMP and MELANIA, on the eve of his inauguration, which initially soared, bringing rich profits to his family. However, MELANIA plummeted by 90% after bringing in $11.4 million in revenue for the affiliated entity. Two Trump family-affiliated entities hold 80% of the TRUMP token supply, which will be unlocked over three years. In February this year, the Trump Media Tech Group applied for a trademark for the "Truth.Fi Bitcoin Enhanced ETF" and plans to launch an ETF in partnership with Crypto.com. In March, the Trump family's WLFI project announced a stablecoin plan, launching the USD1 stablecoin, backed by short-term U.S. Treasury bonds and cash equivalents. In the Bitcoin mining field, the Trump family also partnered with the publicly traded company Hut 8 to establish the American Bitcoin Corp to fulfill the support commitment to the mining community made during the 2024 election.

A series of actions by the Trump family has raised market concerns about their conflicts of interest. Eswar Prasad, professor of trade policy at Cornell University, pointed out: "The Trump family seems eager to establish a broad industry foothold before regulatory policies that could boost crypto asset valuations are put in place. The president's sons are planning to take their Bitcoin mining company public, and the SEC has recently concluded its investigation into Crypto.com."

The cryptocurrency industry has been subject to regulatory scrutiny, with governments around the world grappling with how to oversee digital currencies. The Trump family's proactive approach indicates a readiness to navigate the complexities of regulatory compliance while capitalizing on the opportunities presented by the industry. This strategy could position the family as a key player in the cryptocurrency market, influencing its direction and shaping its future.

The Trump family's involvement in the cryptocurrency industry is a testament to their forward-thinking approach and willingness to adapt to new technological advancements. As the industry continues to evolve, the family's presence could bring stability and credibility, attracting more investors and fostering growth. This move underscores the Trump family's commitment to innovation and their ability to identify and capitalize on emerging trends in the financial sector.