Riding the Trump Coin Wave: How a Tiny Logistics Firm’s Bold Move Sparks Market Chaos

A little-known logistics company, freight technologies Inc. (FRGT), has become the poster child of 2025’s crypto-political spectacle after announcing plans to buy $20 million worth of TRUMP meme coins—a token tied to former President Donald Trump—to influence U.S.-Mexico trade policies. The move sent its stock soaring 108% in a single day, only to plummet 20% days later as skepticism mounted. This article dissects the gamble, its implications, and why investors should tread cautiously.

The Announcement: A Lightning-Rod Strategy

On the day of the announcement, Freight Technologies’ shares shot from $0.95 to $3.83, briefly valuing the company at $4.6 million—a fleeting high. The trigger? The company’s plan to use proceeds from a convertible note offering (initially targeting $1 million, with potential up to $20 million) to purchase TRUMP tokens. CEO Javier Selgas framed it as a “strategic advocacy play” to oppose U.S.-Mexico tariffs threatening its cross-border logistics business.

But critics saw a darker motive: influence-buying. The TRUMP coin, launched ahead of Trump’s 2025 inauguration, had already drawn controversy. Over 80% of its supply is controlled by Trump-affiliated entities, including CIC Digital LLC, raising red flags about conflicts of interest.

The Trump Coin: A Volatile Political Token

The TRUMP meme coin’s trajectory mirrors the chaos of modern crypto markets. Launched at $75 in January 2025, it plummeted to $7 by April—only to rebound after Trump’s team announced an exclusive May 22 dinner for top token holders. The event, promising a “VIP reception” and White House tour (later scrubbed), sparked a 58–70% surge, briefly lifting its market cap to $2.7 billion.

Yet the coin lacks intrinsic value. Unlike utility tokens, TRUMP’s only “use case” is as a political sentiment barometer. Its price swings are tied to headlines: tariffs, geopolitical bluster, and even Trump’s Twitter activity. Technical analysts note a bull flag pattern could push it toward $23–$33 by May 22, but a “sell-the-news” drop to $7 is equally plausible.

The Risks: A House Built on Hype

The gamble carries staggering risks. For Freight Technologies, its $20 million bet positions it among the top TRUMP coin holders, potentially securing a spot at the May 22 dinner. But critics, including watchdog Accountable.US, argue the move reeks of “pay-to-play politics”. The SEC’s stance—that meme coins are not securities—has allowed unregulated proliferation, but regulatory scrutiny looms.

The memecoin’s structural flaws amplify the danger. Over 82% of tokens are held by the top 10 wallets, creating manipulation risks. A sudden selloff by these “whales” could crater prices, as seen in April when 40 million unlocked tokens briefly panicked markets.

The Bottom Line: High Risk, High Reward?

For investors, the calculus is stark.

• Upside: If the TRUMP coin’s May 22 event fuels sustained demand, Freight Technologies could see its shares rebound. Technical forecasts suggest FRGT stock might climb to $2.24–$2.26 in May, with a 9.62% ROI. The company’s AI and blockchain partnerships (e.g., a $5.2M FET token purchase) add long-term speculative appeal.
• Downside: Regulatory crackdowns, a TRUMP coin collapse, or a “sell-the-news” post-dinner correction could erase gains. Freight Technologies’ stock has already swung from $3.83 to $0.98 in days—a 75% drop—highlighting its fragility.

The broader implications are equally concerning. The case underscores how corporate lobbying, crypto speculation, and political influence are merging in ways that defy traditional risk assessment.

Conclusion: A Cautionary Tale for the Crypto Age

Freight Technologies’ stock surge and subsequent volatility epitomize 2025’s crypto-political landscape: a high-stakes game where sentiment and symbolism often outweigh fundamentals. While the TRUMP coin’s May 22 event could briefly lift prices to $23–$33, its long-term viability hinges on utility—something it lacks.

Investors are left with a stark choice: ride the wave of speculative fervor, or avoid a company whose value is tethered to a coin that’s 88% below its peak and a political narrative riddled with ethical dilemmas. For now, the freight logistics firm’s gamble is a reminder that in the crypto era, even the smallest players can make the biggest headlines—and the biggest losses.