Trump is driving cryptocurrency into a capital frenzy and helping the United States become a global crypto hub, while the underlying systemic fragilities are already surfacing. Earlier this summer, a group of corporate executives pitched a business plan to Anthony Scaramucci, a former Trump adviser and Wall Street financier. He later joined as a consultant to three unnamed companies using the strategy, and said the negotiations went very smoothly. But the fervor did not last long.
Last autumn the crypto market collapsed, and the stocks of the three companies Scaramucci was involved with tumbled, the worst-performing company down more than 80%. It stands as a stark illustration of the crypto craze sparked by Trump. The ripple effects of Trump’s strong support for cryptocurrency are becoming clearer. This year has seen a surge of boundary-pushing crypto startups drawing more people into this volatile market.
More than 250 listed companies have begun accumulating crypto, and the price volatility of these digital assets is not dissimilar to traditional investments such as stocks and bonds. Over the past two months, major crypto prices collapsed, and firms that had invested heavily in crypto assets have faced financial distress. Other emerging projects are drawing warnings from economists and regulators, showing that market risks are accumulating. Until last autumn, listed companies borrowed heavily to buy crypto, and the notional value of outstanding crypto futures contracts exceeded $200 billion.
ALT5 Sigma’s management deteriorated rapidly, and in August a subsidiary executive was convicted of money laundering in Rwanda, with the board saying it was investigating other undisclosed matters. World Liberty Financial announced it would join ALT5 Sigma’s board and planned to purchase WLFI. Eric Trump serves as a strategic adviser. A portion of revenue is paid each time the WLFI token trades.
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