Trump's Crypto U-turn: What he once called a 'scam' made him over $1 billion in a year!

Donald Trump, who once dismissed cryptocurrency as a "scam" and said he was not a fan of digital assets, now has crypto as one of the biggest contributors to his personal wealth. According to foreign media reports, the American president's latest annual financial disclosure shows that he earned more than $1 billion from cryptocurrency-related businesses over the past year.

The disclosure has reignited debate in the US over whether a sitting president should have such extensive business interests in an industry that is also affected by government policy.

The White House has rejected allegations of any conflict of interest, saying the president and his administration take decisions in the best interests of the American people.

Three crypto ventures at the centre

Trump's earnings came mainly from three cryptocurrency businesses — the $TRUMP memecoin, World Liberty Financial, and a stablecoin called USD1, according to reports.

The biggest contribution reportedly came from World Liberty Financial, which generated more than $500 million for Trump over the past year. The $TRUMP memecoin business is also said to have brought in more than $600 million, taking the combined earnings to over $1 billion.

Together, these ventures have transformed Trump's position in the cryptocurrency industry. The same sector he once criticised has now become one of his largest sources of income.

What are these crypto products?

Not all cryptocurrencies work the same way.

The best-known digital currency is Bitcoin, which is used by investors around the world and is not controlled by any single company.

A memecoin is very different. It usually has no underlying business or product. Its value depends largely on investor interest and social media buzz. If demand increases, the price rises. If excitement fades, the value can drop just as quickly.

A stablecoin is designed to be more predictable. Unlike Bitcoin or memecoins, its value is linked to the US dollar. One USD1 token is intended to remain worth $1.

How does the stablecoin business make money?

The business model is relatively straightforward.

When someone buys USD1, they exchange US dollars for digital tokens. The company issuing the stablecoin keeps those dollars and invests them in relatively safe assets, such as short-term US government bonds.

Those investments generate interest income. As more people buy the stablecoin, the amount of money invested also increases, allowing the issuer to earn more interest.

Foreign media reported that crypto exchange Binance helped promote USD1 after it was launched.

The reports also said an Abu Dhabi-based investment fund invested $2 billion in Binance using USD1, significantly increasing the reserves supporting the stablecoin.

Why is it attracting criticism?

The controversy surrounding Trump's crypto businesses is not just about the money he has earned.

Foreign media reported that critics argue cryptocurrencies can often be bought without revealing the buyer's identity. They say this raises concerns that individuals or organisations seeking influence could purchase crypto assets linked to the US president without the level of transparency expected in traditional political fundraising.

The White House has rejected those concerns, maintaining that there is no conflict of interest.

The memecoin has lost most of its value

Like many memecoins, $TRUMP saw a sharp rise in value soon after its launch before losing momentum.

Foreign media reported that the token is now trading about 98 per cent below its peak price. While early investors benefited from the initial rally, many others entered later and have since seen the value of their holdings decline sharply.

The reports also said Trump's family has gained billions of dollars from its cryptocurrency ventures since he returned to office, even as many investors who bought some of those digital assets have suffered losses.

The disclosures have once again placed Trump's business empire under scrutiny. Supporters say his administration has introduced clearer rules for the cryptocurrency industry, while critics argue that his financial interests in the sector raise ethical questions that have no modern precedent for a sitting US president.