Per a report from Forbes, companies tied to the US President Donald Trump reduced their exposure to World Liberty Financial (WLF). These entities sold around 20% of their stake in this company, reducing from 60% to 40%.
Donald Trump Takes Money Off the Table
The report claims that while the US President is not directly involved in these transactions, there is someone with a strong connection to the Oval Office operating in his behalf. Several reports claimed that Trump and his family have already made millions of dollars from their crypto investments.
WLF has been one of the most lucrative ventures for the Trump family. Announced in September last year, the company contributed $30 million to the Trump treasury, Forbes claims.
In addition, a separate report claims that Barron Trump, Donald Trump’s youngest son, has made over $40 million for his participation in World Liberty Financial. With the help of his older brothers, Don Jr. and Eric, Barron worked as a promoter and a ‘Web3 Ambassador’ for the company and a co-founder.
The company netted $200 million for the Trump family in January. Following this performance, the company experienced a series of changes in its business structure, including a reduction in the Trump’s family participation from 75% to 60% to the now reported 40%.
In that sense, the Trumps seem to be reducing their stake progressively. Neither the Trumps or representatives for World Liberty Financial have commented on the reasons behind the sales.
However, the report speculates that due to the performance in the company and its success, the Trumps might be taking a profit while the bullish momentum rises.
Many experts have been critical to these behavior from Trump and his closest family openly calling corruption. Expert on political history for the University of Princeton, Julian Zelizer, stated the following:
To me, Trump’s crypto dealings seem pretty explicit. Policy decisions are being made regarding parts of the financial industry that are being done not to benefit the nation, but his own financial interests … It’s hard to imagine what he’s doing benefits the nation.
Is Donald Trump Preparing for a Crypto Winter?
At the time of writing, the crypto market is undergoing a sell off. The top cryptocurrencies by market cap Bitcoin and Ethereum record between 3% and 10% losses over the past week.
The sector is potentially heading for a sluggish summer. Per the trading firm QCP Capital, several factors on the macroeconomic scene and seasonality will push the Bitcoin price and the altcoin market into a prolonged low volatility environment.
Mainly, the Trumps and other institutional investors might be pulling away for the summer leaving the crypto market in a cautious stalemate. QCP stated:
Summer sluggishness has set in for crypto. BTC implied volatility is back below 40%, erasing its recent spike. Risk reversals are still negative, suggesting cautious sentiment.
Cover image from ChatGPT, TRUMP/USDT chart from Tradingview
