Donald Trump from inside the White House is pushing for new crypto investments. This time, it is decorated as a “Crypto Treasury” company. But, just like the last two times, his base is paying the price.
Setup is easy. Trump will cash out quickly. Everyone else eats the loss. According to Wall Street Journalthe strategy appears creepyly familiar to anyone who has seen his past financial ventures explode in the faces of supporters.
The playbook has not been changed.
Trump will burn supporters once again with the true social collapse
Fans jumped in when Trump dropped the true social platform through Trump Media & Technology Group.
The stock currently has a 52% decline since before the merger. It fell 73% from the high we reached a week later. He hasn’t learned the lessons, and many people went straight to $Trump, and his personal Memecoin launched in January.
Early buyers quickly turned profits over. However, anyone who attended after the first 24 hours was wiped out. By the day Trump was sworn again, 90% had fallen. It’s still better than $Melania, but it’s gotten even worse.
The only half work was NFT drop. Trump sold $99 digital trading cards pose as anything from superheroes to space commanders. These NFTs reached a floor price of almost $800 at one point. Today, the cheapest one is around $200. However, individual sales bouncing between $82 and $846 last week. As always, the late buyer lost the most.
Now there’s a new pitch. The “Crypto Treasury” company, modeled after Michael Saylor’s stop in micro-strategy, has now been renamed the Strategy. The Saylor model is simple. Use your company’s cash, debt and stocks to buy Bitcoin non-stop. Currently, over 3% of all Bitcoin is in circulation, worth $70 billion.
Trump’s family saw the hype and copied the structure, but exchanged Bitcoin for a token called WLFI. Coin comes from World Liberty Financial, a company that Trump and his sons co-founded. As part of its fundraising, global Liberty acquired stakes in crypto company Alt5 Sigma. The campaign is about to raise $1.5 billion to buy WLFI tokens. Trump’s son, Eric Trump, is currently sitting on the board on the ALT5.
The WLFI is scheduled to be released in September. But it does not provide ownership, profit or anything concrete. Holders are giving just 5% of the vote in governance of USD1, a dollar-supported stubcoin ruled by world freedom. that’s it.
Bitcoin has a cap. WLFI is not. There is no track record. Only value? Buying it is a public show of loyalty to Trump. No one knows what you are holding unless the holding is big enough to trigger a disclosure.
Meanwhile, Trump has a mountain of WLFIs. And the company associated with him is entitled to acquire 75% of the WLFI sold by World Freedom. That’s where the money is. It’s not a token. With the setup. Profits don’t go to the general public. They go straight back to the cards.
Owen Lamont, portfolio manager at Acadian Asset Management, said, “This phenomenon violates all principles of finance. Previously, people had to do complicated things to cover investors with bamboo. Now they can do simple things.”
And there’s a history of backing him up. Shares that exceed their actual assets will never be maintained. The Taiwan Fund, which began in 1986, was once a 300% premium. Today, it is below the value of its holding. Destiny Tech100, which has private equity stakes from SpaceX and Openai, surged to 20 times its asset value before retreating. It is still trading at premium, but far from the peak.
So, remember the cycle when Trump promises an infinite upside down. He gets cash first, and everyone else is left behind. There’s nothing like a permanent money machine. It’s not a code either.
