How Trump’s Attack On Venezuela May Have Made Him Money

Key Concepts

• Cryptocurrency Holdings: Donald Trump’s investments in various cryptocurrencies, including tokens associated with Trump Media and Technology Group (TMTG), World Liberty Financials, and the memecoin “Dollar Sign Trump.”
• TMTG (Trump Media and Technology Group): A media and technology company owned by Donald Trump, encompassing Truth Social, a fusion energy venture, and crypto initiatives.
• Venezuela Incursion: The US military/special forces operation resulting in the apprehension of Venezuelan President Nicolás Maduro.
• Paper Wealth Increase: The increase in the estimated value of assets, not necessarily realized gains due to liquidity constraints.
• Memecoin: A cryptocurrency often based on internet memes or jokes, typically with high volatility.

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Trump’s Financial Gains Following the Venezuela Operation

The Forbes report details how the US operation in Venezuela, resulting in the capture of Nicolás Maduro, appears to have significantly increased Donald Trump’s personal wealth, specifically through his cryptocurrency holdings. This increase, estimated at approximately $140 million as of Wednesday following the operation, is largely unrelated to oil market fluctuations, which remained largely unaffected by the events in Caracas.

Cryptocurrency Performance & TMTG Gains

The most substantial gains stem from Trump’s shares in Trump Media and Technology Group (TMTG). TMTG’s stock price experienced a jump on Monday following news of Maduro’s arrest, increasing by approximately 4%, and remained elevated as of Tuesday’s market close. This translates to a $63 million increase in the value of Trump’s nearly 115 million TMTG shares.

The report posits two potential reasons for this surge: the correlation between TMTG’s stock performance and perceived “foreign policy wins” for Trump (citing a similar, though less sustained, increase after the June bombing of Iranian nuclear facilities), and the broader market rally in Bitcoin and other cryptocurrencies coinciding with Maduro’s ouster. TMTG’s business model is described as an “amalgamation” including the Truth Social platform, a fusion energy company merger, and a deliberate “Bitcoin treasury strategy” alongside other crypto ventures.

Gains from World Liberty Financials Tokens

Beyond TMTG, Trump’s holdings in World Liberty Financials tokens also saw a significant increase. The tokens rose approximately 20% overnight on January 3rd, from $0.15 to $0.18 each, coinciding with reports of US special forces apprehending Maduro. DT Marks Defi LLC, the Trump family company, owns an estimated 22.5 billion of these tokens, with Trump personally owning 70% of that amount. Even applying a “heavy discount” due to the tokens’ current illiquidity, Forbes estimates a $34 million increase in value for Trump’s World Liberty Financials holdings.

The “Dollar Sign Trump” Memecoin Surge

The report highlights Trump’s memecoin, “Dollar Sign Trump,” launched prior to his inauguration, as a particularly direct reflection of trading activity linked to the former president. This memecoin also experienced a 9% increase in value following the commencement of operations in Caracas. Forbes again applied liquidity discounts, acknowledging that a sale of even a small portion of these coins would likely cause a price collapse. However, even with these considerations, the estimated value of Trump’s 256 million unlocked and 544 million locked “Dollar Sign Trump” tokens increased by approximately $45 million.

Broader Financial Trends & Trump’s Net Worth

The report contextualizes these gains within the broader trend of Trump’s increasing wealth since entering politics. Forbes previously estimated Trump’s net worth at $7.3 billion in September, a $3 billion increase largely attributed to his burgeoning cryptocurrency businesses and the ability to “sell digital hype to fans and speculators.” The report suggests that launching military actions serves as an effective method for attracting attention to these ventures.

As stated by Kieran Meadows, “And there are few more effective ways of getting attention than launching a war.”

Methodology & Caveats

Forbes employed a methodology involving market analysis and estimations, applying discounts to account for liquidity issues and potential price collapses upon selling. The report acknowledges some uncertainty regarding the precise number of tokens held by Trump, relying on his most recent disclosures. The gains are described as “paper wealth increases,” emphasizing that they represent estimated value rather than realized profits.

Conclusion

The Forbes report presents a compelling case that the US operation in Venezuela, while having geopolitical implications, also resulted in a substantial, estimated $140 million increase in Donald Trump’s personal wealth through his cryptocurrency holdings. This increase is attributed to the performance of TMTG stock, World Liberty Financials tokens, and the “Dollar Sign Trump” memecoin, all of which experienced surges coinciding with the news of Maduro’s arrest. The report underscores the growing importance of cryptocurrency as a source of wealth for Trump and highlights the potential for geopolitical events to directly impact his financial interests.