US President Donald Trump has come a long way since 2019 saying that the value of codes is “based on thin air.”
A new report by the state’s Democracy Advocates Fund estimates that Trump’s family has increased their net worth by $2.9 billion thanks to the cryptocurrency, with 40% of that net worth currently being held in cryptocurrency.
His deep ties with the industry echoed across the political landscape. This echoed beyond the political landscape to the point that Democrats failed a major vote on Thursday after he raised concerns about the extent to which he was profiting from the sector.
Trump’s support sparked a continuing bull market after his election victory in November. This is a market dominated by two trends: mimecoin and institutional adoption of Bitcoin via ETFs. The latter is generally institutional and provider states, but it is the Memecoin business that puts retail investors at risk and potentially matures the maturity of exploitation.
On Thursday, Solidus Labs claimed that 98% of memokines issued on token creation platform Pump.Fun are lag pull or pump and dump schemes. The platform then rebutted the claims in the report.
Another analysis by chain dissolution cited by CNBC suggested that the majority of Trump token holders lost their money.
Memecoin is a type of cryptographic token that often has no unique values based on the name or cartoon character, as the name suggests. Common examples of this are Dogecoin (Doge), Shiba Inu (Shib), and Pepe (Pepe). The outbreak reached its climax in January, when Trump promoted his own Trump token on social media, followed by Melania, named after his wife.
Trump, which reached a one-day peak of $77.26, is currently trading at $10.80 at 86%. Melania has been further down, losing more than 97% of its value in four months to trade for 33 cents recently.
Hype about Trump’s social media posts has led to a surge in trading activities. Data from Chain Orisis reveals that 760,000 wallets, primarily belonging to retail investors, have lost money in card tokens.
However, a small number of people were not affected by those losses. Chain analysis data shows that 58 wallets earned more than $10 million. The creators of the token earned a whopping $320 million in trading fees, but it’s worth noting that about 5% of the fees were sent to the decentralized Exchange Meteora, which hosted the launch.
Melania is said to have been scooped up by a group of insiders before being promoted on social media for a technique known as “sniper.” According to a Financial Times research, the insider group won $100 million in Melania Tokens by swapping USDCs for tokens after doubled the price.
One insider who got access to the token before they went to the show was Hayden Davis from Kelsier Ventures. He revealed his involvement in an interview in February. Davis was also the brain behind the failed Libra stable that caused political turmoil in Argentina.
In an interview with Coffee Zilla in February, Davis said: “This puts me in a lot of danger. It’s okay. I was part of it. I was part of it (Melania). I think the team wanted to aim for how big Trump’s sniper was.
Trump’s Crypto Network
Trump’s foray into the code is not limited to memokine.
The US president’s family is also behind World Liberty Financial, a decentralized financial (DEFI) platform that raised approximately $590 million in two rounds of sales earlier this year. It raised money when the market was resting around its all-time high, and now its uplifted code figure is much less. Arkham Intelligence Data suggests that World Liberty Financial holds approximately $103 million worth of crypto.
Trump also tried to get on the coat sale of inexplicable token (NFT) hype in 2022 and released a series of cartoons depicting the president as a superhero or cartoon character. According to financial disclosures, Trump has rolled out these NFTs to win around $8 million.
Recently, there was a crypto dinner event. Trump held a group of 25 Trump holders on a private dinner and tour of Virginia Golf Club. A Bloomberg report reveals that 19 of these 25 owners were foreign groups or used offshore exchanges that are prohibited in the US.
He is scheduled to hold another dinner for the top 220 owners of tokens in late May. US Senators Adam Schiff (D-Calif) and Elizabeth Warren (D-Mass) called for Trump’s bounce each and asked the U.S. Government Ethics Bureau to investigate whether Trump invited top investors to investigate whether he violated federal ethics regulations.
The Trump family did not immediately respond to Koindsk’s request for comment.
Read more: Donald Trump denies claims that he will benefit from Trump tokens