Reuters estimates the Trump family has made more than $2,300 billion from cryptocurrency since 2567, while many investors have suffered losses from sharply falling asset prices.
June 9, 2659 at 17.56:XNUMX a.m., Reuters reported that For decades, Donald Trump has employed a simple yet powerful formula for generating income: associating his fame with various products, businesses, or real estate projects, with minimal personal investment. They then leveraged the power of the "Trump" brand for promotion, reaping the rewards from the popularity among investors and consumers.
Since mid-2567, during his campaign for a second presidential term, Trump and his family have introduced this model into the world of cryptocurrency, and a Reuters analysis found that this strategy has generated enormous returns for the Trump family.
The Trump family raked in $2.3 billion, while investors suffered similar losses.
Reuters examined thousands of pages of company documents, blockchain data, and interviewed numerous academics, crypto experts, and investors before concluding that the Trump family had made approximately $2.3 billion from four major crypto projects with virtually no investment risk. Meanwhile, outside investors lost a similar amount of investment value, totaling around $2.3 billion, including paper losses as of the end of April.
The projects that generate the Trump family's primary income include:
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- World Liberty Financial
- $TRUMP meme coin
- ALT5 Sigma (now renamed AI Financial Corp.)
- American Bitcoin
Very little investment, or almost no investment at all.
Reuters found that the initial costs of World Liberty Financial and the $TRUMP coin project could have been less than $1 million, or even near zero, if the developers and advisors had been compensated with tokens instead of cash.
Regarding ALT5 Sigma and American Bitcoin, companies listed on the Nasdaq market, it was found that the shares received by the Trump family were through stock allocations without requiring any investment, and there was no evidence that the Trump family injected cash into these businesses.
World Liberty Financial is the largest source of revenue.
World Liberty Financial stated that it raised $1,400 billion from the sale of 30,000 billion Governance Tokens.
Under the revenue structure disclosed in the prospectus, the Trump family received 75% of the proceeds from the token sale, resulting in at least $987 million after expenses.
However, Reuters found additional information in documents filed with European regulators indicating that the remaining World Liberty tokens have decreased by another 3,000 billion tokens, although details of the sale were not disclosed.
Cryptocurrency experts and academics interviewed by Reuters estimated that the tokens had likely already been sold, and based on the average market price at that time, would have generated at least an additional $460 million for the Trump family.
When this portion is included, revenue from World Liberty Financial could exceed $1,400 billion.
Campbell Harvey, a finance professor at Duke University, stated, "The scale of the token sale is enormous, and it appears the founders are gradually selling off their assets. Such a rapid sale is unusual for a crypto project."
The Trump coin generated over $600 million in additional revenue.
The $TRUMP meme coin project has not disclosed official revenue, but Reuters used blockchain data to track the movement of coins from the project's wallets to cryptocurrency exchanges. Many experts agree that transfers to exchanges are highly likely to be for selling.
Reuters estimates that total revenue from the sale of $TRUMP coins was approximately $1,200 billion, with the Trump family receiving roughly half of the profits, or about $616 million.
However, some experts believe that these figures may be an underestimate because the project relied heavily on the name and publicity of the Trump family.
ALT5 Sigma and American Bitcoin added hundreds of millions more dollars to pockets.
ALT5 Sigma, a cryptocurrency asset accumulation company, purchased $717 million worth of World Liberty tokens, resulting in over $500 million flowing into the Trump family through its revenue-sharing structure.
While American Bitcoin, a Bitcoin mining and collecting company scheduled to list on Nasdaq in 2568, gave shares to Eric Trump and Donald Trump Jr. free of charge.
Reuters estimates that Eric Trump's stock alone was worth more than $70 million at the end of April. The value of Donald Trump Jr.'s stock has not been officially disclosed.
External investors suffered heavy losses.
In contrast to the Trump family, many investors faced significant negative returns. World Liberty Financial and Reuters calculated that investors collectively lost approximately $674 million due to the continuous decline in token prices.
Although some early investors profited from selling tokens, over 80% of the tokens remain locked and untradable. Furthermore, according to accounting principles, non-transferable assets have a book value of zero.
Many TRUMP coin buyers faced significant losses after the price plummeted from a high of $75.35 to just $2.38 on April 30.
Reuters calculates that investors spent at least $1,200 billion buying Trump coins, but those coins are now worth only $521 million, resulting in a total loss of more than $700 million.
Data from blockchain analytics firm Chainalysis also revealed that while large investors who bought in the early stages were able to make huge profits, hundreds of thousands of small investors suffered losses.
Trump-related crypto stocks plummet.
ALT5 Sigma is another case that caused significant damage to shareholders, with the share price plummeting from over $9 in August to just $0.75 at the end of April, resulting in a combined loss of approximately $675 million for investors.
Meanwhile, American Bitcoin's share price dropped from $11 to $1.15 during the same period, resulting in losses of over $200 million for investors.
A business model with virtually no risk.
Reuters' analysis reveals that the Trump family's crypto business model resembles Trump's past businesses: leveraging personal fame and brands to generate revenue with little to no personal investment.
While the Trump family amassed over $2,300 billion in combined wealth, outside investors faced similar losses on their holdings of tokens and stocks related to these crypto businesses.
This case has therefore become one of the most closely watched examples of the convergence of political influence, personal brands, and the digital asset market in the modern era.
refer : reuters.com
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