3 Reasons Why Trump's Net Worth Rises Due to Investments in Cryptocurrency: Should You Invest?

The net worth of President Donald Trump's family has increased in recent months, with a significant portion of that growth tied to cryptocurrency. A recent report by CBS News estimated that the net worth of the Trump family has increased by $2.9 billion, with 40% coming from cryptocurrency-related projects. But financial experts warn that average investors may not expect similar results. Here are three main reasons why Trump benefits from cryptocurrency and why those factors may not apply to everyday investors. He Created the Currency Trump not only invested in cryptocurrency; he created it. Most of the profits come from coins like $TRUMP and $MELANIA, which were launched and are largely owned by his companies. According to a report by the State Democracy Defenders Fund, Axios estimates that 89% of Trump's net worth includes $TRUMP at its peak. "Trump's net worth has increased because he holds the majority of the $TRUMP coin supply. He minted it. His companies control 80% of the tokens," said David Materazzi, CEO at Galileo FX. "The price skyrocketed, he made more." In this case, Trump is not betting on cryptocurrency; he has created a type of cryptocurrency. In contrast, average investors buying cryptocurrency may not see similar profits. Transaction Fee Increases Profit Trump also earns fees for each token transaction. This means that revenue continues to flow in even when the coin depreciates. "Trump benefits as the creator of the currency, earning fees regardless of the performance of that currency," said John Deaton, cryptocurrency legal expert and founder of CryptoLaw. "The meme coin TRUMP has generated over 320 million dollars in transaction fees for its creators, with entities of the Trump family earning significant revenue even as the value of that currency declines." While this increases Trump's net worth, 764,000 investors have lost money in the $TRUMP coin, according to a report by CNBC. Cryptocurrency Can Bring Profits to Creators Trump is not the only one who has witnessed a rise in net worth due to investments in cryptocurrency. Many creators of other coins have also seen similar unexpected profits. For example, according to a report by Vox, it has been reported that the creator of bitcoin, whose true identity is unknown, holds up to 1.1 million bitcoins. With the trading price of bitcoin on May 28 being around $108,900, that figure amounts to over $119 billion. "This is not just happening to the Trump family," Deaton said. "Almost every meme coin ever created has benefited the creators and insiders, while retail investors have lost money." While cryptocurrencies can yield profits for those who build and launch tokens, it may be a different story for the average person. Cryptocurrencies are known for being highly volatile, and average investors should exercise caution and never invest more than they can afford to lose when purchasing any cryptocurrency.