Trump's Financial Comeback: From Instability to Leveraging Crypto Assets for a Rebound

In the spring of 2024, although Donald Trump's return to the White House attracted public attention, his financial situation faced severe threats, despite being largely overlooked. His office building in downtown Manhattan generated meager income, unable to service its mortgage; many golf courses were operating at a loss; and the millions of dollars in income from his television celebrity status had essentially dried up. Sudden legal rulings further threatened to consume all his cash. However, as he secured the Republican nomination, everything began to change. The Trump family restructured their business, establishing a series of partnerships with investors willing to bet on his victory, particularly in the Crypto Assets sector. This financial rebound not only helped him out of his predicament but also sparked controversy over politicians profiting from the use of Crypto Assets.

1. Financial Distress: The Truth Behind the Empire's Imminent Collapse

At the end of 2023, Trump boasted about having between 300 million and 400 million dollars in cash while testifying in a fraud lawsuit brought by the New York Attorney General. However, an analysis by the New York Times of internal documents from the Trump Organization revealed a more pressing motivation behind Trump's actions: he needed to make money easily, rather than simply desiring it, to maintain his empire.

Records of the fraud case indicate that Trump's cash did not come from a stable and powerful empire. His asset balance fluctuated dramatically, dropping to a low of $52 million in 2018. The subsequent growth mainly came from selling properties and over $150 million in passive investment income. Additionally, the business version Trump planned—a real estate development company executing large complex tasks—has been nonexistent for nearly a decade since Trump's last two major construction projects failed to turn a profit.

Trump's wealth is now built on monetizing the family surname in new ways and, whether intentionally or unintentionally, monetizing the presidential office. This is a business that chases million-dollar checks—from legitimate real estate developers, Crypto Assets, and community media businesses operated by others. It also sells Trump-branded trinkets like watches and gold phones to the president's fervent supporters.

Before the judge's ruling on the Trump family's $355 million compensation, his businesses often required cash injections. Trump faces a second compensation ruling of $88.3 million in the sexual abuse and defamation lawsuit filed by writer E. Jean Carroll. Trump has not yet paid the judgment amount, which currently totals over $600 million (including interest). He also faces a potential $100 million loss due to a long-term tax audit.

2. Crypto Assets: The Key Engine for Trump's Financial Comeback

After Trump won the presidential election, the practice of profiting from Crypto Assets began to play a significant role. His family business announced several new deals that would directly benefit Mr. Trump economically, even if his policy decisions affected these industries or involved countries with political interests in the U.S. Most notably, Mr. Trump is now a partner in several Crypto Assets businesses and also serves as the chief policy regulator in the encryption field as president. He has expressed a desire for his administration to take a non-interventionist approach to digital currencies.

Shares of World Liberty Financial (WLFI): According to a report by Bloomberg, Trump holds a 60% stake in the digital asset company World Liberty Financial, valued at approximately $460 million. The company invests in digital assets, and Trump's sons Eric Trump and Donald Trump Jr. are both actively involved. The company has also launched its own stablecoin, USD1.

The massive profits of Memecoins: The Trump family has made particularly lucrative sales from Memecoins. According to data from the cryptocurrency analytics firm Chainalysis, the fees collected by Trump and his associates from these sales have reached $320 million to date. It turns out that the value of these Memecoins is worth millions more compared to the Trump-branded Bibles, guitars, and watches sold by the Trump family during last year's campaign. The official Trump coin (TRUMP) he holds is valued at $150 million. Recently, the president also invited top token holders to a private dinner to promote his Memecoins.

The long-term viability of these new businesses remains unclear, and the liquidity of the Crypto Assets held by Trump is similarly uncertain. He currently cannot sell most of his Crypto Assets. However, new funds have helped to resolve old issues. Last month, the Trump family paid off a $115 million mortgage due on Wall Street 40. Analysts had indicated that the low rental income from the building would make banks reluctant to refinance.

3. Controversies and Criticisms: Concerns of Conflicts of Interest

Trump and his family's investments in crypto assets have drawn strong criticism from political opponents. Among the most vocal are Representative Maxine Waters and Senator Elizabeth Warren, who have expressed concerns over potential conflicts of interest and opportunities for bribery.

Waters stated that Trump's stake in WLFI opened the door for foreign entities to purchase presidential visit rights. She also criticized the launch of the Trump meme coin, claiming that the coin has cost investors at least $2 billion, while Trump and his family profited at least $350 million from it.

White House Press Secretary Karoline Leavitt stated that Trump complies with all conflict of interest laws and that his conduct only considers the interests of the American public. However, many transactions have opened multiple channels for anyone to funnel money to the current president, and the sources of these funds are often difficult to trace under current disclosure requirements. Since some transactions involve the use of the president's name, there are no clear indicators to measure whether he received market price, a premium due to his position, or actual bribes.

IV. Transformation of Family Businesses: From Real Estate to Brand Licensing and Digital Assets

The Trump family's business model has undergone a significant transformation. In the past, their wealth primarily came from large real estate development projects. However, in recent years, their core real estate business has performed poorly, such as the retail space in Trump Tower being vacant, the income from 40 Wall Street being insufficient to cover mortgage payments, and the Chicago construction project failing to deliver the expected returns.

On the contrary, Trump's wealth is now built on monetizing the family surname in new ways, and (whether intentionally or unintentionally) monetizing the presidency. This is a business chasing million-dollar checks—coming from real estate developers, Crypto Assets, and community media businesses run by others. It also sells Trump-branded trinkets to the President's fervent supporters.

The Trump family's licensing agreements also fully recovered from the depleted state when he entered politics after winning the Republican presidential nomination. Subsequently, nine development deals were quickly announced, primarily focused on the Arabian Peninsula and India. Some who paid for the Trump brand explicitly stated that his official status is part of its appeal.

Conclusion:

Trump's financial situation has undergone a dramatic transformation, shifting from a period of instability to leveraging his political influence and brand effect, particularly in the Crypto Assets field, achieving a significant financial comeback. This not only helped him address immediate debt issues but also provided financial support for his future political career. However, this approach of combining political influence with business interests, especially in the emerging and regulatory-ambiguous Crypto Assets field, has also sparked serious conflicts of interest and ethical controversies, warranting continuous attention from all sectors of society.