Trump and sons' stake in crypto firm worth $5bn

Donald Trump and his sons now have a huge stake in a new cryptocurrency company called World Liberty Financial, which has just started trading its digital token, WLFI. The value of the Trump family’s holdings in this company is estimated to be around $5 billion. The Trumps launched World Liberty Financial last year, right in the middle of Donald Trump’s presidential campaign. This move raised concerns among critics about possible conflicts of interest, since Trump could end up making decisions about the crypto industry if he became president. World Liberty Financial raised money by selling WLFI tokens to investors. At first, these investors were not allowed to sell their tokens, but in July, they voted to let early buyers sell up to 20 percent of their holdings. The Trump family, as founders, were not included in this group and still cannot sell their tokens. WLFI started trading at about $0. 22 on major exchanges like Binance and Coinbase, but its price dropped by about 50 percent since trading began on Monday. This sharp fall shows that demand for the coin is not very strong right now. However, the price is still higher than what many early investors paid, so they could make a profit if they sell. Eric Trump posted on social media, saying that World Liberty Financial is setting a new standard for financial freedom and that this is a huge moment for the future of money. Financial reports show that Donald Trump owns about 15. 75 billion WLFI tokens, which are worth more than $3. 4 billion. The Trump family as a whole controls just under a quarter of all WLFI tokens, giving them a total stake worth about $5 billion at current prices. In addition to their holdings, Trump and his sons also receive a share of the revenue from coin sales, which has already brought in more than $500 million. Last month, World Liberty Financial partnered with another publicly traded company that had raised $750 million to buy WLFI tokens. This deal puts World Liberty Financial in the unusual position of being both a buyer and a seller of its own token.

Democrats have repeatedly raised concerns about Trump’s involvement in the crypto industry, arguing that World Liberty Financial and other coins he supports could be used for corruption or conflicts of interest. The Trump administration has dismissed these criticisms, saying that their policies are encouraging innovation and economic opportunity for all Americans. White House press secretary Karoline Leavitt said that the media’s attempts to create stories about conflicts of interest are irresponsible and make people distrust what they read. She insisted that neither the President nor his family have ever been involved in conflicts of interest and never will be.

Under the Biden administration, token offerings like World Liberty Financial’s faced strict scrutiny. Officials argued that these tokens were similar to stocks and should follow the same rules as publicly traded companies, including rules about conflicts of interest and disclosure. Trump, however, has promised a more relaxed approach, saying he wants the US to become the ‘crypto capital of the world’. Last month, the Department of Justice shut down its task force focused on crypto crimes, and financial regulators have rejected Biden’s guidance on securities. Trump’s top financial regulator, Paul Atkins, said that most crypto assets are not securities and that new rules are needed to help these products grow in American markets.

The Trump family’s involvement in crypto is a major development in both business and politics. While some people see it as a sign of progress and innovation, others worry about the risks and possible problems. The WLFI token is still new, and its future is uncertain. As the debate over crypto regulation continues, the Trump family’s actions will be closely watched by both supporters and critics.