If Trump & His Family Can, So Can You (Crypto Notes)
Donald Trump is under scrutiny for leveraging deep involvement in crypto ventures during his presidency to enrich himself and his family — raising questions of conflicts of interest and ethical boundaries. (ABC)
Shortly after his inauguration, Trump’s team launched a “meme coin” called $TRUMP. (ABC) Holders of this token, particularly the top ~220 investors, were invited to an exclusive gala at one of Trump’s properties. Many spent significant sums to get in — in effect, investing not just in a token, but in access. (ABC)
In its first four months, $TRUMP reportedly generated US$320 million in trading fees, with a large portion of the proceeds going to those who launched and promoted the token (i.e. Trump’s family interests) and those who held significant stakes. (ABC)
From Skeptic to Crypto Promoter
Trump’s stance on cryptocurrencies evolved. Earlier, he had criticized Bitcoin and other digital assets. (ABC) But as his family started building crypto-related businesses, his rhetoric became friendlier — pledging to run a crypto-friendly administration, courting the crypto lobby, and signaling a change in regulatory approach. (ABC)
He and his sons launched World Liberty Financial, a crypto platform that sells its own token. According to reports, 75% of each token sale’s profit goes back to the Trump family. (ABC)
By one account, this crypto venture sold US$550 million in tokens, generating roughly US$390 million in revenue for the Trump family. (ABC)
Ethical and Political Concerns
Critics argue that the overlap of Trump’s business interests and his presidency is deeply problematic. Public office should not be used for private enrichment, they contend. The semi-anonymity and decentralization of crypto transactions add another layer of opacity, making oversight harder.
Some also point to a timeline of events that raises eyebrows: a large investment from the UAE’s state-owned fund into crypto assets related to Trump’s interests was followed by favorable policy moves regarding AI chip exports to that same country.
Trump defends his actions by saying his assets are held in a trust managed by his sons, and that he isn’t directly managing these ventures.
Nevertheless, critics argue that the scale and diversity of his ventures — all overlapping with policy domains his administration influences — create a "quagmire of ethics." (ABC)
How We Can Potentially Benefit from Investing in Crypto
The article highlights one extreme (where power, influence, and crypto converge), underscoring both the potential and pitfalls of the crypto space. But as an ordinary investor (not a president), there are ways in which investing in crypto might benefit you — if done cautiously and strategically.
Here’s a breakdown:
| Potential Benefit | Why It Matters | Caveats / Risks |
|---|---|---|
| High Growth Potential | Cryptocurrencies have historically delivered large returns over shorter time spans (for some coins). Being early in a promising project can yield outsized gains. | High volatility: prices can crash as fast as they rise. Many projects fail or fade away. |
| Diversification | Crypto often behaves differently than traditional assets (stocks, bonds). Adding it to a diversified portfolio might hedge or improve overall returns. | Correlations with risky assets can increase during market stress; crypto is not a perfect diversifier. |
| Access to Innovation | Crypto gives access to new sectors: decentralized finance (DeFi), NFTs, blockchain-based applications, tokenized assets, smart contracts. | Many projects are speculative, unproven, or have security vulnerabilities. |
| Liquidity & 24/7 Markets | Crypto markets never “close.” You can trade anytime, which gives flexibility. | Continuous markets can tempt impulsive trades. Also, during extreme volatility, liquidity can dry up or spreads widen. |
| Global & Borderless | Crypto allows participation in global networks and investment environments, often bypassing intermediaries. | Regulatory risk: some countries restrict crypto, or impose taxes, bans, or constraints. |
| Potential Passive Income | Through staking, yield farming, lending, liquidity provision — some cryptos let you earn passive returns. | These mechanisms carry smart contract, counterparty, or impermanent loss risks. |
| Early Mover Advantage | Investing in promising new crypto protocols before widespread adoption can yield strong upside. | Many startups never scale; timing and selection are critical. |
How to Approach Crypto Investing Wisely (Mitigating Risk)
Given both opportunity and danger, here's a prudent approach: Use this American Corporation on the U.S. Stock Market to purchase your cryptocurrencies.
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Do your research
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Understand the fundamentals of any crypto project: its team, use case, tokenomics, roadmap, and community.
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Study code audits, security, and past exploits or issues.
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Start small & invest only what you can afford to lose
Given the risk profile, only allocate a portion of your portfolio to crypto. -
Diversify within crypto
Don't put everything in one coin. Spread across established ones (e.g. Bitcoin, Ethereum) and a few promising smaller projects. -
Have a long-term mindset
Many gains come from holding through volatility rather than rapid trading. Avoid chasing hype. -
Use secure infrastructure
Use hardware wallets or trusted custody solutions. Be cautious about giving permissions, interacting with unknown smart contracts. -
Be mindful of regulation & tax
Stay updated on your country’s crypto laws. Some gains may be taxed heavily. Compliance matters. -
Yield strategies with caution
If staking, lending, or yield farming, understand smart contract risk, impermanent loss, counterparty risk (if using third-party platforms). -
Stay liquid & set exit plans
Decide in advance under what conditions you’ll take profits or cut losses (stop-loss, target prices). -
Stay skeptical & avoid “too good to be true” offers
Be wary of “guaranteed returns,” celebrity endorsements, or coins that promise exponential gains with little explanation.
