Trump Family Faces Backlash Over Cryptocurrency Support
Important points
- President Donald Trump’s World Liberty Financial faced backlash for endorsing a humor-based token named SPSC.
- Influencers, including Coffeezilla, and traders expressed doubts about WLFI’s commitment to its goals.
- This incident happens amid a downturn in the Trump family’s cryptocurrency investments, which have seen significant losses.
World Liberty Financial (WLFI), associated with President Donald Trump’s family, has come under scrutiny for backing a vulgar joke token called “Sh*t P*ss Skin Can” (SPSC). This announcement stirred quite a controversy.
Reports indicate that the Trump family’s investments in digital currencies have plummeted by over $1 billion, primarily due to severe losses in Bitcoin, as noted by the Bloomberg Billionaires Index.
WLFI recently revealed its plans to acquire SPSC Meme Coin, a token created to honor co-founder Chase Herro. Herro has previously remarked that even trash could sell for enormous amounts if the narrative was compelling enough.
“We bought SPSC because the trenches finally found religion in the USD1 meme,” the company posted on its official X account.
This announcement led to a rapid speculative rise in SPSC, increasing by 143%. However, it also triggered swift criticism from various cryptocurrency experts and online investors.
Notable YouTuber and fraud investigator Coffeezilla pointed out the stark contrast between WLFI’s goal of “building the future of finance” and its promotion of such a meme-focused coin. He criticized the lack of seriousness in their messaging.
“WLFI, President Trump’s ‘Building the Future of Finance’ crypto project, just promoted a ‘shit skin can’ coin,” Coffeezilla noted.
Other traders echoed this sentiment, arguing that WLFI’s support for such tokens diminishes its credibility. One commenter mentioned, with a hint of sarcasm, that the project seemed to lack effort and simply relied on automated tools for their social media presence.
The controversy arises as the Trump family grapples with a dwindling financial situation, attributed to the falling value of their broader cryptocurrency portfolio. Bloomberg reports indicate that their net worth has dropped from approximately $7.7 billion in early September to around $6.7 billion now, largely due to significant setbacks in volatile crypto investments.
The Trump Media & Technology Group, in particular, has suffered considerable losses. Bloomberg states that since September, the company has seen an $800 million decline in revenue, impacting its Bitcoin holdings severely.
“The stock of about 11,500 Bitcoins purchased when the cryptocurrency’s price was around $115,000 means the company has accumulated a loss of about 25 percent on that position,” Bloomberg summarized.
Despite these challenges, a spokesperson for World Liberty Financial emphasized the company’s ongoing commitment to its long-term objectives in the crypto space.
“Cryptocurrencies are here to stay,” he affirmed. “World Liberty Financial has long-term confidence in the rapidly maturing technology that underpins digital assets and believes it will fundamentally improve financial services.”
