Trump’s Crypto Venture Sparks Profit-Taking and Investor Losses Again

Donald Trump has entered the cryptocurrency space with a new venture that has drawn significant attention, albeit for controversial reasons. The has launched a crypto initiative dubbed a “crypto treasury” firm, inspired by Michael Saylor’s strategy of accumulating large amounts of digital assets. However, reports indicate that Trump and his inner circle have already begun realizing profits, while early supporters—many of whom were enticed to invest—have seen little to no return [1].

The structure of the new venture involves World Liberty Financial, a company co-founded by Trump and his sons. The firm has partnered with Alt5 Sigma, a crypto firm, and is aiming to raise $1.5 billion to purchase a token called WLFI. Eric Trump now sits on Alt5’s board, further entrenching the family’s involvement in the project [1].

WLFI, however, offers little tangible value to investors. Holders receive only 5% of the voting rights in USD1, a stablecoin controlled by World Liberty. The token has no cap and no track record, with its value largely based on symbolic support for Trump. The company linked to Trump is entitled to 75% of any WLFI sold, meaning the profits flow directly back to the Trump family rather than to the broader investor base [1].

This pattern is not new. Trump’s previous crypto-related initiatives, such as the launch of $TRUMP, a memecoin, and NFTs based on his image, have followed a similar trajectory. Early buyers often saw quick profits, while latecomers were left with significant losses. For example, $TRUMP fell by 90% within weeks of its launch, and NFTs that once traded for nearly $800 now sell for as low as $200 [1].

Owen Lamont, a portfolio manager at Acadian Asset Management, noted that such strategies violate basic financial principles, as they rely on extracting value from late-stage investors rather than delivering long-term growth [1].

Critics argue that Trump’s latest venture is another attempt to capitalize on the enthusiasm of his supporters. This sentiment is reinforced by reports that Eric Trump recently made aggressive price predictions for Bitcoin, forecasting it could reach $175,000 and eventually $1 million [5]. These statements were made at the Wyoming Blockchain Symposium, where Eric presented as a vocal advocate for Bitcoin. Separately, he has also been reported to be preparing a high-profile trip to Tokyo for a shareholder meeting related to Trump Media, a company that plans to invest $2 billion in Bitcoin this year [3].

The broader crypto market has shown signs of stabilization, with Bitcoin’s volatility hitting a five-year low. However, Ethereum recently dipped below a key support level of $4,750, signaling mixed market sentiment [2]. Meanwhile, new projects like Pepeto, a DeFi initiative, have attracted investor interest by raising over $6.28 million in its presale [2].

Trump’s increasing involvement in crypto also coincides with a shifting regulatory environment. The U.S. Commodity Futures Trading Commission (CFTC) has initiated a new “crypto sprint” aimed at clarifying the regulatory landscape. However, the confirmation of Brian Quintenz, Trump’s nominee for CFTC chair, remains pending, which could delay significant policy changes [8].

Despite Trump’s efforts to position himself as a crypto leader, analysts remain skeptical about the long-term viability of his ventures. For instance, his reported $9 billion investment in Intel, giving him a 9.9% stake, has been met with doubt. Experts argue that without new business opportunities, this investment may not be enough to revitalize the chipmaker [7].

As the crypto market continues to evolve, the influence of high-profile figures like Trump is becoming more pronounced. Whether these ventures lead to sustainable growth or further losses for investors remains to be seen. For now, the pattern of early profit-taking and late investor losses appears to persist, raising concerns about transparency and fairness in the space [1].

Sources:

[1] https://coinmarketcap.com/community/articles/68ab8c6ff2b06b3231da5684/

[2] https://cryptoslate.com/defi-resurgence-2025-layer-1-leaders-poised-for-a-post-biden-comeback/

[3] https://cryptoadventure.com/eric-trump-makes-bitcoin-price-predictions-as-he-reportedly-gets-ready-to-visit-metaplanet

[5] https://m.economictimes.com/crypto-news-today-live-23-aug-2025/liveblog/123461063.cms

[7] https://www.mexc.com/es/news/trumps-9b-stake-wont-save-intel-without-new-clients/71635

[8] https://www.coindesk.com/