The Trump family is once again in the spotlight—this time, for their foray into cryptocurrency with the launch of World Liberty Financial (WLF). Spearheaded by Donald Trump, Donald Trump Jr., and Eric Trump, this initiative is positioned as a bold step into decentralized finance (DeFi). However, the move has also sparked intense political and regulatory scrutiny, raising concerns about potential conflicts of interest and financial risks.
The Big Crypto Move: What’s Happening?
On January 20, 2025, the same day as Donald Trump’s presidential inauguration, the family-backed crypto venture made a massive $100 million investment in digital assets. This included:
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$46.8 million in Ethereum (ETH)
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$46.7 million in Wrapped Bitcoin (WBTC)
These transactions were carried out through the decentralized exchange CoW, marking a strong commitment by the Trump family to expand their presence in the crypto market.
Alongside these investments, the family also launched their own memecoins on the Solana blockchain:
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TRUMP Token – Peaked at a $15 billion market cap before dropping 40%
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MELANIA Token – Introduced by First Lady Melania Trump over the same weekend
These tokens gained quick traction in the market but also faced extreme volatility, leading some experts to question their long-term viability.
Political and Regulatory Concerns
With Trump now in office, this crypto venture has ignited major ethical and regulatory debates. Leading Democratic senators, including Elizabeth Warren, have raised alarms about a conflict of interest—arguing that a sitting president and his family controlling a cryptocurrency entity could create serious financial and policy concerns.
A letter from these senators to the Federal Reserve and the Office of the Comptroller of the Currency (OCC)demands clarity on how regulators plan to oversee a crypto company owned by the president’s family. Lawmakers warn that this could compromise financial stability and create undue influence over crypto regulations.
Adding to the controversy, the Genius Act—a proposed bill in Congress—aims to place stricter regulations on stablecoins, an area where WLF is expected to operate. Critics argue that the Trump administration’s executive control over financial regulators could allow the family to shape crypto policies in their favor.
Financial Structure: Who’s Really Profiting?
A newly released 13-page “World Liberty Gold Paper” sheds light on WLF’s revenue distribution model:
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75% of all net protocol revenue goes to DT Marks DEFI LLC, a company tied to Donald Trump.
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25% is allocated to Axiom Management Group (AMG), a Puerto Rico-based firm owned by WLF co-founders Chase Herro and Zachary Folkman.
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The Trump family has no liability in the venture, according to the document.
This setup has raised serious ethical concerns, as it suggests the Trumps will profit heavily from WLF’s success without taking on financial risk.
The Future of Trump’s Crypto Empire
The launch of WLF and its rapid entry into the DeFi market has led to speculation that the Trump family may expand further into blockchain technology. Ethereum co-founder Joseph Lubin has hinted that the Trump administration could soon launch Ethereum-based government projects—a move that could reshape financial regulations and blockchain adoption in the U.S.
However, the success of World Liberty Financial will depend on several factors:
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Regulatory Scrutiny – Will lawmakers crack down on the potential conflicts of interest?
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Market Volatility – Can WLF and its tokens survive the unpredictable crypto market?
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Public Perception – Will the initiative be viewed as a legitimate financial revolution or a political cash grab?
As the 2024-2025 political landscape continues to unfold, Trump’s cryptocurrency ambitions are set to remain a major talking point in both financial and political circles. Whether this venture is a groundbreaking innovation or a regulatory nightmare, only time will tell.
