Trump’s Transition into Cryptocurrency
Former President Trump, who once expressed skepticism about Bitcoin, has now fully embraced cryptocurrencies. He claims that he and his family are utilizing them to build wealth. However, the details of how Trump’s crypto endeavors are organized at a corporate level remain somewhat murky. In a recent episode of Crypto Playbook, journalist Ben Weiss, who has followed Trump’s crypto initiatives closely, explained that the whole setup consists of various distinct businesses.
Weiss noted, “There are four different teams in the Trump cryptocurrency ecosystem—interconnected yet entirely separate—each focusing on their own crypto projects while leveraging Trump’s name.”
The first business to emerge in this landscape was launched back in December 2022, prior to Trump’s broader acceptance of cryptocurrencies, which he showcased at a Bitcoin event during his campaign. This venture comprises Trump NFTs, and after last November’s election, it expanded to include Trump’s personal meme coins, now boasting a market cap exceeding $1 billion. Bill Zanker, a long-time associate and business partner of Trump, oversees these operations.
Trump’s second and most significant crypto business is World Liberty Financial, initiated by the family last fall. This includes the WLFI token, valued around $3 billion, and a stablecoin called USD1. Notably, this stablecoin was utilized by a UAE firm to invest $2 billion in Binance. World Liberty Financial is also publicly listed, with shares primarily linked to the value of WLFI tokens.
According to Weiss, daily operations at World Liberty Financial are managed by seasoned crypto professionals Zach Folkman and Chase Herro. However, the real influence seems to come from Trump’s eldest sons, Don Jr. and Eric, who are closely involved in key decision-making.
While Zanker’s NFT and meme coin ventures, along with World Liberty Financial, offer revenue for the Trump family, conflicts have arisen between the two entities. Weiss pointed out that tensions surfaced when Zanker sought to launch a cryptocurrency wallet, which was opposed by Trump’s sons who had their own plans for a wallet.
The third entity contributing to Trump’s crypto ambitions is the Trump Media & Technology Group. Initially aimed at running the Truth Social platform, it has since branched out to operate a Bitcoin holding company along similar lines to Michael Saylor’s strategy. This enterprise also collaborates with firms like Singapore’s Crypto.com.
Lastly, there’s American Bitcoin, a new cryptocurrency mining operation created after absorbing the mining activities of a company named Hut8. This endeavor, managed by Eric Trump, carries the family name, which helps in branding.
All four of Trump’s crypto businesses are generating substantial revenue, reportedly in the billions, though their product lines and goals are in a constant state of flux. Weiss remarked, “I think about Trump’s crypto ventures and wonder about his business strategy before he was president. He used his name to secure loans, which he spent in various ways. This feels pretty similar to what’s happening now.”
