US President Donald Trump has come a long way since he said the value of crypto was “based on thin air” in 2019. So much that he is now one of the sector’s greatest advocates for the memecoins, defi, NFTs and even stableecoins.
A new report from the State Democracy Defenders Fund estimates that Trump’s family has increased their net worth by $ 2.9 billion thanks to crypto and that now 40% of this net worth is being held in crypto assets.
His in -depth ties to the industry reverberate over the political landscape, to the point that a broad Bipartisan stableecoin law proposal failed in a key vote on Thursday after the Democrats expressed concern to the extent to which he benefits from the sector.
Trump’s support helped trigger a continued bull market after his November election victory, a market that has been dominated by two trends: Memecoins and institutional adoption of Bitcoin via ETFs. While the latter is the province of, generally institutional investors and providers, it is the Memecoin business that puts retail investors at risk and is potentially ripe for exploitation.
On Thursday, Solidus Labs claimed that 98% of Memecoins, issued on the token creation platform pump.fun, were carpet or pump-and-dump schemes. The platform has since rejected the reports of the report.
Another analysis by chain analysis, cited by CNBC, suggested that the vast majority of Trump token holders lost money.
A MEMECOIN is a type of crypto -token without any inherent value, often based, as the name suggests, on a meme or cartoon character. Popular examples of this are Dogecoin (DOGE), SHIBA INU (SHIB) and PEPE (PEPE). The skill reached a highlight of January when Trump proclaimed his own Trump token on social media, followed by Melania – named after his wife.
Trump, who hit a day-a-top of $ 77.26, is now shopping for $ 10.80, with a full 86%. Melania fell even further and lost more than 97% of its value of four months to trade recently at 33 cents.
Hype around Trump’s social media posts led to a flurry of trading activity. Data from Chainalysis reveals that 760,000 wallets mainly belonging to retail investors lost money on the Trump took.
However, a small group of people were immune to these losses. The chain analysis data shows 58 wallets earning over $ 10 million. The token’s creators network over $ 320 million in commercial fees, although it is worth noting that about 5% of the fees went to the decentralized Exchange Meteora, which hosted the launch.
Melania was allegedly gathered by a group of insiders before it was announced on social media in a technique called “Sniping.” This group of insiders earned $ 100 million on Melania tokens by swapping tokens to USDC after its price doubled, according to a financial -hour survey.
An insider with access to tokens before going live was Kelsier Ventures’ Hayden Davis, who revealed his commitment during an interview in February. Davis was also the brains behind the crushed weight stigocin that brought political chaos to Argentina.
In an interview with Coffeezilla in February, Davis said: “This will put me in a lot of danger. Which is fine, I answer. I was part of it [MELANIA]. I think the team would sniff it because of how big the snip was on Trump. We were definitely not the big sniper, that’s what we tried to avoid. We did not take out any liquidity, zero. “
Trump’s crypto network
Trump’s steps to crypto are not limited to memcoins.
The US president’s family is also behind the World Liberty Financial, a decentralized funding (Defi) platform that raised around $ 590 million across two pre-sales rounds earlier this year. It raised money at a time when the market was resting around at all times, so this number of raised crypto is now much smaller. Arkham -Intelligence Data suggests that World Liberty Financial has about $ 103 million worth of crypto.
Trump also tried to ride coattails from non-spoken token (NFT) hype in 2022, releasing a series of comics depicting the president as a superhero or a cartoon character. Trump earned about $ 8 million from rolling out these NFTs according to financial information.
Most recently, there was the Crypto dinner event that saw Trump host a group of 25 Trump holders for a private dinner and tour of his Virginia Golf Club. A Bloomberg -Report reveals that 19 of these 25 holders were either foreign devices or used an offshore exchange prohibited in the US
He is ready to host another dinner for the top 220 holders of his token later in May. US Senators Adam Schiff (D-California) and Elizabeth Warren (D-Mass. Called for Trump’s impeachment and asked the US office of government ethics to investigate whether Trump violated the federal ethical rules of inviting top investors.
The Trump family did not immediately respond to Coindesk’s request for comment.
Read more: Donald Trump denies claims to take advantage of Trump -Token
