Trump Family Loves ETH, But Advisors Play the SOL Game

• The TRUMP Coin Saga: 80% ownership controlled by Trump-affiliated companies, launched on Solana with initial price surge and subsequent drop, raising pump and dump concerns
• Trump Family's Ethereum Enthusiasm: World Liberty Financial (WLFI) actively investing in Ethereum ecosystem, including ETH, Chainlink, and Aave tokens
• David Sacks and Solana: Trump's AI and Crypto Czar has indirect Solana investments through Craft Ventures' stake in Multicoin Capital, potentially influencing blockchain platform choice
• ETF on TRUMP Coin: A Rex-Osprey Trump ETF in development, using a Cayman Islands subsidiary, with potential regulatory challenges
• Mixed Signals on Blockchain Preference: Conflicting approach between advisors' Solana focus and family's Ethereum investment, suggesting potential strategic diversification
• Finishing Note: Anticipates more crypto projects from political figures in 2025, with caution about potential speculative "bloatware" tokens

‍

The TRUMP Coin Saga: Ownership and Concentration

In a notable move within the cryptocurrency sphere, former President Donald Trump launched his own meme coin, dubbed "Official Trump" (TRUMP), on the Solana blockchain. This venture into digital currency was not just a solo endeavour; it involved significant ownership by entities closely associated with Trump. According to the details from the launch, the ownership of TRUMP coin is highly concentrated, with two Trump-affiliated companies, Fight Fight Fight LLC and CIC Digital LLC, holding a staggering 80 percent of the coins remaining after the initial coin offering (ICO). This concentration has raised eyebrows in the crypto community, with critics labelling the launch as potentially predatory due to the controlled distribution of tokens. The TRUMP coin was introduced shortly before Trump's inauguration, with its price experiencing a dramatic surge initially, only to fall by about 50% in the days following, sparking concerns of a pump and dump scheme. Despite these criticisms, the coin's launch on Solana, known for its speed and lower transaction costs compared to Ethereum, suggests a strategic preference by Trump's advisors for this Monolithic blockchain platform.

‍

Trump Family's Ethereum Enthusiasm via WLFI

Contrasting the advisors' focus on Solana, Trump's family has shown a different inclination through their involvement with World Liberty Financial (WLFI). WLFI, described as a family-run project, has been actively investing in the Ethereum ecosystem. This investment strategy includes significant purchases of Ethereum (ETH) and other tokens within the ETH ecosystem like Chainlink (LINK) and Aave (AAVE). By choosing to focus their investments on Ethereum, which is the leading platform for decentralized finance (DeFi) and smart contracts, the Trump family through WLFI seems to be betting on the stability, maturity, and extensive use cases of Ethereum. This approach aligns with Ethereum's established position in the blockchain world, suggesting a long-term bullish stance on ETH from the Trump family's perspective.

‍

David Sacks and His Influence on Solana

Adding another layer to this story is David Sacks, Trump's appointed AI and Crypto Czar, whose involvement might have influenced the choice of Solana for the TRUMP coin. Sacks, through his venture capital firm Craft Ventures, has indirect investments in Solana. Craft Ventures invested in Multicoin Capital in 2017, which was an early backer of Solana. This connection suggests that Sacks's familiarity and belief in Solana's potential could have played a role in the decision to launch the TRUMP coin on this platform. Sacks's position provides a bridge between Trump's advisory circle and the crypto tech community, potentially leveraging his investment insights to guide decisions like the choice of blockchain for high-profile projects like the TRUMP coin.

‍

ETF on TRUMP Coin and Major CEX Listings

Adding to the intrigue surrounding the TRUMP coin, there's news that an Exchange-Traded Fund (ETF) focused on tracking the TRUMP token, known as the Rex-Osprey Trump ETF, is already in the works. This development was revealed through a securities filing shortly after the coin's launch, indicating a rapid move to legitimize and provide investment vehicles for this politically charged cryptocurrency. The ETF aims to gain exposure to the TRUMP token through a Cayman Islands subsidiary, which might expedite its launch but could also complicate regulatory approval due to its unique structure compared to traditional bitcoin ETFs. Despite the high concentration of ownership, which typically might raise red flags for listing on major exchanges due to concerns over market manipulation, Major crypto exchanges were notably quick to list the TRUMP coin. This swift action could be attributed to various factors:

Market Demand: The high-profile nature of the Trump coin likely generated significant interest, prompting Major Exchanges to capitalize on the hype.

Political Influence: The involvement of a high-profile political figure might have swayed decisions, considering the potential for increased visibility and user engagement.

Token Utility and Community: Although speculative, the TRUMP coin's connection to Trump's brand might have been seen as adding a unique utility or community engagement aspect, despite the lack of traditional utility.

‍

Mixed Signals on Trump's Blockchain Preference

The dual approach by Trump's circle presents mixed signals regarding which Layer 1 (L1) blockchain Trump is more bullish on. On one hand, the launch of TRUMP coin on Solana by his advisors, possibly influenced by David Sacks' investment ties through Craft Ventures, indicates a preference for the platform's innovative capabilities and potential for rapid growth, especially in the speculative meme coin market. On the other hand, the Trump family's investment through WLFI in Ethereum suggests a belief in ETH's foundational role in DeFi and its broader acceptance within the crypto ecosystem. There’s isn’t a single Solana protocol on WLFI’s portfolio. This dichotomy could reflect a strategic diversification or differing views within Trump's inner circle on the future of blockchain technology, where Ethereum's established ecosystem meets Solana's promise of scalability and speed.

Finishing Note

With the landscape in the U.S. becoming friendlier towards cryptocurrencies, we might see an increase in projects endorsed by political figures or high net worth individuals without direct involvement in 2025. While this could potentially bring more visibility to the crypto space, there's a risk that many of these projects might turn out to be bloatware—projects with little to no real utility or innovation, primarily designed for quick profit.

TRUMP coin ETF may be a far play, but ETH ETF already exists and as per Ethereum Co-Founder, Joe Lubin, there are now higher chances for Staking enabled on these ETFs possibly as early as Q1 2025. Institutions are big on yield generation, and this may push the Ethereum ecosystem much higher especially Staking protocols such as Lido, RocketPool, etc. However, no major positive Price actions observed on staking and restaking protocols so should be a bit cautious.

Wintermute, one of the largest Market Makers, has a substantial amount of TRUMP token as seen through on-chain analysis. They recently did a Twitter post over TRUMP tokens being offered through their OTC Desk. There may be block orders consumed by institutions, however, no known public acquisitions highlighted as these OTC trades are private. Most of the trading volume may be retail driven with serious institutional interest yet to be outlined.  

Trump speaks highly of Bitcoin and bitcoin reserves, his family is Eth driven and his advisors favor the biggest non-EVM chain; Solana. Thus, all 3 of these Layer 1s in our opinion would perform quite well throughout the year.