As Donald Trump and his sons delve further into the cryptocurrency sector, their primary initiative is significantly enhancing the family’s financial standing, potentially by billions. On Monday, the World Liberty token commenced trading on various crypto exchanges, rapidly ascending to become one of the leading cryptocurrencies globally. This development raises additional questions regarding the increasingly ambiguous relationship between the White House and the blockchain domain.
Initially revealed by Eric Trump last summer, World Liberty Financial is a cryptocurrency venture that claims to initiate a “new era of finance.” However, it has yet to roll out services beyond its WLFI token and a stablecoin known as USD1. Over the past year, World Liberty conducted a number of private token sales targeted at accredited investors, pricing the tokens between 1.5 and 5 cents. With entities linked to the Trump family holding approximately 22.5 billion of these tokens, along with shares in the parent company, their wealth has reportedly surged by billions—at least in a theoretical sense.
However, with the recent launch of the token on secondary markets, this wealth is no longer merely hypothetical, although the Trump family’s holdings remain locked. As of the latest reports, with the token trading at around $0.23, the Trump family’s stake in WLFI alone is estimated to be around $5 billion, not including their interests in other ventures, like Trump’s memecoin, $TRUMP.
Broadening the Business Portfolio
Historically, Trump has excelled in branding, and after his initial term in office, he leveraged his name to broaden his business interests beyond his traditional focus on real estate. This expansion includes the publicly traded Trump Media & Technology Group, which owns his social media platform, Truth Social, along with various cryptocurrency initiatives. Once critical of the crypto space, Trump shifted his stance during his campaign last summer, coinciding with the Biden administration’s increased scrutiny of firms like Coinbase and Binance, which ultimately garnered him the backing of crypto industry leaders and substantial campaign contributions for pro-crypto candidates.
In conjunction with this political pivot, Trump and his sons, Eric and Don Jr., have initiated multiple crypto-related ventures, including World Liberty Financial, which emphasizes decentralized finance through its WLFI token. They have also explored other facets of the crypto world, such as Bitcoin mining and Ethereum investments. While Trump’s memecoin, introduced during his inauguration weekend, has drawn significant attention, World Liberty Financial is positioned to deliver more sustainable financial solutions.
The specific services World Liberty plans to offer, including lending options, remain somewhat ambiguous. Nevertheless, it has already launched several products, including its stablecoin and the WLFI token, which has gained traction among cryptocurrency investors. Following its launch on Monday, WLFI’s market capitalization reached approximately $5.5 billion, making it one of the top 30 cryptocurrencies. The Trump family continues to build upon the World Liberty framework, including the establishment of a publicly traded company that incorporates the token, inspired by Michael Saylor’s strategies.
Controversy and Ethical Concerns
The rising popularity of World Liberty has also attracted scrutiny from ethics experts, who argue that the Trump family’s expanding array of crypto projects presents significant opportunities for influence-peddling. In May, Trump hosted a dinner for major holders of his memecoin, featuring attendees like Justin Sun, a notable crypto entrepreneur previously targeted by the Securities and Exchange Commission. The SEC later dropped its lawsuit against Sun during the Trump administration, and he is also among the largest holders of WLFI.
Simultaneously, the Trump administration has reversed several Biden-era policies aimed at instituting regulatory frameworks for the largely unregulated crypto market, although blockchain proponents have contended that these regulations stifled innovation. In June, the watchdog organization Citizens for Responsibility and Ethics in Washington cautioned, “Trump appears set to generate even more conflicts than before, with less transparency than during his last term.” The new Fortune Crypto Playbook vodcast features insights from senior crypto experts at Fortune, discussing the major factors shaping the cryptocurrency landscape today. Tune in to watch or listen now.
