US Congress Concerned About Donald Trump's Crypto Projects
Date: 2025-01-24 Author: Henry Casey Categories: IN WORLD
In a statement to the Oversight Committee, Connolly expressed concern that projects such as the World Liberty Financial (WLFI) platform and the TRUMP meme token could generate income for Trump and his family, violating ethical standards and potentially threatening national security.
Connolly drew special attention to WLFI, whose largest investor is Tron founder Justin Sun. The Chinese businessman is under investigation by the SEC for alleged securities fraud. The congressman noted that Sun's investment of 30 million WLFI tokens allowed the company to transfer money directly to the Trump family.
Trump also launched the TRUMP meme token three days before his inauguration. Connolly emphasized that the Trump Organization, owned by the politician, owns 80% of the tokens. According to experts, this raises serious ethical questions, as Trump is using his political role for financial gain.
The price of TRUMP peaked at $73.43 on the eve of the inauguration, but subsequently fell by more than 50% to $36.
According to PANews, large investors were actively buying TRUMP at low prices. The average investment was $591,000. The greatest activity was recorded on January 19, when the price was in the range of $65-70.
One of the investor addresses invested $1.09 million in the token at its launch at a price of $0.18, and later sold assets worth over $20 million. Experts believe that this address may be associated with an insider from the Solana-based liquidity aggregator Jupiter.
The researchers noted that the token’s high capitalization of $82 billion and the public actions of early investors increased the excitement around TRUMP.
Cathie Wood, CEO of ARK Invest, told Bloomberg that she doesn’t see much value in TRUMP, calling it “the president’s meme coin.” She emphasized that her company invests exclusively in Bitcoin, Ethereum, and Solana.
According to Dune, most TRUMP holders have recorded minor losses or are still in the black, but the interest in the project has sparked a new wave of discussion about the role of cryptocurrencies in politics.
