The Trumps are sitting on a pile of unrealized cryptocurrency wealth that goes far and wide beyond just a digital assets account holding a bunch of Bitcoin and Ethereum.
Eric Trump‘s recent ‘boasts’ about the first family’s crypto holdings are going viral on social media and raising eyebrows, with many thinking, “how far does the Trump family’s crypto web spin?”
For many years now, Donald Trump has presided over companies that prioritize getting into any business, regardless of the methods or the means, as long as there is a strong enough return on the balance sheet to justify it. That means huge unrealized gains but no strong record of cash-based profits.
Last year, Eric Trump said profits from cryptocurrency investments ran into more than $1 billion.
That also meant the issuance of meme coins by the Trumps, which yielded massive profits for a few but hurt retail investors as a whole. Then let’s not forget the $2 billion deal facilitated by state-owned investment fund MGX in Abu Dhabi.
Similar to the bragadocious style adopted by Donald Trump when talking about what he branded as “mega-successes” in real estate, casinos, and hospitality in the 90s and early 2000s, Eric Trump now calls all the family’s investments in cryptocurrency huge wins that have given them over a billion dollars in profits.
This means businesses that don’t really produce cash also sit in the portfolio. American Bitcoin Corp, Trump Memecoin, and World Liberty Financial are the key sources of what Eric Trump says are the main profits running into the business.
Whatever sector it may be, real estate or cryptocurrency, the trend has not changed: The Trumps are still here promoting businesses and inflating value beyond what they are intrinsically worth.
USD1 stablecoin and WLFI token
Issued by World Liberty Financial, the USD1 stablecoin has supposedly brought in major profits for the Trumps and is credited as the largest source of income for them. Now with ownership split between an Abu Dhabi-linked entity and other investors, the family’s stake has reduced, but token sales have generated approximately $550 million.
While the WLF token does have some adoption, it’s really the USD1 stablecoin that has amassed a huge market share in the stablecoin market. It is the sixth-largest stablecoin by market capitalization. Its market cap is estimated at $4.43 billion.
Alongside the stablecoin, World Liberty Financial also launched a DeFi lending platform, which extends into oil and gas and other debt instruments.
Trump and Melania meme coins
Capitalizing on the presidency, business associates linked to the family decided to launch meme coins, which raked in huge profits but hurt smaller retail investors as a whole. At the start of January, two meme coins were issued, one for U.S. President Donald Trump and one for First Lady Melania Trump.
Profits earned by a few were reportedly massive for the TRUMP meme coin, estimated at $427 million in profits. Investor losses were recorded at an estimated $4.3 billion after a year of issuing.
Its initial debut created a trading frenzy that gave the meme coin an all-time high of $73.43. Since then, the coin has lost more than 90% of its value and now trades at $3.26 according to coinmarketcap
American Bitcoin Corp
In addition to memecoins and stablecoins, Eric Trump also owns a significant stake in Bitcoin mining. American Bitcoin Corp, which is partially owned by Eric Trump and Donald Trump Jr., with the majority owned by Hut8 Corp. It is the 16th largest BTC treasury firm in the world. At the time of writing, the firm holds roughly 6,900 BTC.
Again, the large amount of BTC does not necessarily translate to cash-based profits, a profit accounting problem faced by the rest of the Bitcoin mining industry, one in which Eric Trump and Donald Trump Jr are locked into as well by way of investment.