Donald Trump certainly has set the cryptocurrency world alight in the last two months with his administration’s focus on bringing cryptocurrency into the mainstream.
Of course, most people who aren’t closely following crypto assume that Trump is focusing on what many consider to be novelties in the crypto market, his $TRUMP coin, which many consider to be meme coins, and with collectibles and NFTs. Well, that leaves out World Liberty Financial, which certainly isn’t a novelty, although it’s not yet proven to be an actual decentralized project.
But even with a meme coin, Trump surprised those unfamiliar with cryptocurrencies. Sandy Carter with Forbes writes,
The $TRUMP token was announced via Trump’s X (formerly Twitter) account, initially met with skepticism as many assumed the post was a scam. However, it quickly became clear that the token was legitimate and linked to Trump’s family and inner circle.
And if his family’s businesses are any indication, he really is serious about the long-term potential of crypto.
The Trump family made a few announcements recently, though, which make it clear that…
Trump’s serious (and growing) interest in crypto
How serious, you ask?
Serious enough for his family’s businesses to announce that they will be offering a stablecoin. Alan Suderman with the Associated Press writes,
World Liberty Financial, a cryptocurrency venture Trump helped launch last year, announced Tuesday that it plans to launch USD1, a stablecoin pegged at a 1-to-1 ratio to the U.S. dollar.
Now, in the unlikely even you’re unfamiliar with stablecoins, Suderman offers this explanation:
Stablecoins are among the fastest growing segments of the cryptocurrency industry. They are typically backed by a government-issued currency, like the dollar, or to gold, making them better suited to commercial transactions than more volatile digital assets like bitcoin or other cryptocurrencies.
Why is being tied to a crypto-external value source important? Because it helps people who have been crypto adverse more comfortable with cryptocurrencies, often because the value source for a stablecoin is something that they already understand.
The cautious investor then may ask…
How much does a stablecoin help investors feel safe?
Safe enough for investors to already put over half a billion dollars into this one stablecoin. Julia Shapero with The Hill writes,
World Liberty Financial revealed last week that it brought in $550 million from two sets of token sales.
And this is before this stablecoin is widely known outside the cryptocurrency marketplace. Imagine how much investor interest will be as the average investor becomes aware both of how secure stablecoins are and that Trump has ties (no matter how tangentially) to USD1.
It seems very likely that even crypto-cautious Trump fans will start to look seriously at stablecoins when they see that Trump has a personal vested interest in them (Shapero noted that “A company connected to Trump can receive 75 percent of its revenues.”).
But USD1 isn’t the only recent cryptocurrency venture that Trump’s family is moving into. Again, from Shapero:
Trump Media and Technology Group, Truth Social’s parent company, also announced Monday a new partnership […] to launch a series of exchange traded funds (ETFs).
The ETFs are set to compromise digitals assets and securities “with a Made in America focus spanning diverse industries such as energy,” according to a press release.
Yes, the Trump family looks to be leaning hard into cryptocurrencies and bringing them into the mainstream of investing, and that’s why…
This is a perfect time for you to get ahead of the curve with cryptocurrencies.
See, a rising tide lifts all boats, and the Trump name being associated with cryptocurrencies will cause interest to explode into mainstream investors as well as increased interest and acceptance from large companies both for payment processing and for moving money from one country to another quickly and easily (World Liberty Financial co-founder Zach Witkoff said that one of USD1’s main purposes is “for seamless, secure cross-border transactions”).
More investors being interested in cryptocurrencies helps to increase the capital invested in crypto, thus, crypto prices.
Possibly even more important, though, is that large companies, and maybe especially banks, using cryptocurrencies for their daily transactions and for investment purposes will help to speed up more widespread acceptance of and regular use of cryptocurrencies across the economy.
And as basic economics shows us, the more demand for something, the higher the price. And, of course, the greater the competition…
So, increased interest in cryptocurrencies will cause both cryptocurrency valuations to increase and will also increase the number of possible cryptocurrencies to invest in, which means that you will have more options to maximize your investment value across. It’s truly a win-win situation for those already in the crypto marketplace and for the average investor who isn’t, yet, involved with cryptocurrencies.
And for the investor who gets ahead of this value increase curve, it could also mean a nice boost to their investment valuations due to the “perfect storm” timing of the Trump family’s actions and the growing awareness in cryptocurrencies.
If you’re looking into cryptocurrencies and want to do your due diligence, we might suggest starting with our free Insider’s Guide to Digital IRAs.
