How the Trump companies made $1bn from crypto | FT #shorts

Key Concepts

• Meme Coin: A cryptocurrency that originates from an internet meme or joke, often characterized by rapid price fluctuations and community-driven hype.
• Blockchain: A distributed, immutable ledger that records transactions across many computers.
• Minting: The process of creating new cryptocurrency tokens on a blockchain.
• Stablecoin: A type of cryptocurrency designed to maintain a stable value, often pegged to a fiat currency like the US dollar.
• Governance Token: A cryptocurrency that grants holders voting rights on proposals related to a project's development and future.
• Wallet: A digital address used to store, send, and receive cryptocurrencies.

Investigation into Donald Trump's Crypto Empire

The investigation began with a focus on Donald Trump's controversial new meme coin. Initial inquiries into the coin's performance yielded limited information from Trump himself, who stated, "I don't know if it benefited. I don't know how where it is. I don't know much about it other than I launched it. I heard it was very successful. I haven't checked." When pressed about potential profits, he responded, "You made a lot of money, sir. How much?"

Expansion of the Crypto Empire

The scope of the investigation soon broadened to encompass the Trump family's expanding cryptocurrency ventures. This "growing crypto empire" now includes:

• Melania memecoin: A cryptocurrency associated with Melania Trump.
• USD1 stable coin: A stablecoin designed to maintain a value pegged to the US dollar.
• Wolfie governance token: A token granting holders voting rights within a specific project.

Collectively, these ventures are reported to have generated $1 billion in profit.

Methodology: Following the Money on the Blockchain

The method employed to uncover these financial details involved a systematic approach to blockchain analysis:

1. Starting Point: The investigation commenced on the blockchain where the initial Trump token, "Salana," was launched.
2. Understanding the System: Significant time was dedicated to studying the underlying blockchain system and consulting with experts to grasp its mechanics.
3. Cross-Blockchain Analysis: This process was replicated across other blockchains, such as Ethereum, as new projects emerged.
4. Core Principle: "Follow the Money": For each investigation, the consistent methodology was to "Start with an account of interest, then follow the money."
5. Tracing Transactions: In the specific case of Trumpcoin, the investigation traced the account responsible for minting the token.
6. Identifying Related Wallets: This tracing led to the uncovering of a "cluster of related wallets."
7. Marketplace Analysis: These identified wallets were instrumental in building the "first Trumpcoin marketplace," which served as a crucial element in determining the total profits generated.

Conclusion and Key Takeaways

The investigation highlights a significant expansion of cryptocurrency ventures linked to the Trump family, moving beyond an initial meme coin to include stablecoins and governance tokens. The core investigative technique relied on meticulous blockchain analysis, starting with specific accounts and systematically tracing transactions to identify related entities and financial flows. The reported generation of $1 billion in profit underscores the substantial financial activity within this emerging crypto empire, with the "follow the money" approach on the blockchain proving to be the key to uncovering these details.