Financial revolution, or gilded cage crafted from wind and wishes. The Trump family’s full-throttle dive into the crypto world – from NFTs depicting him as a caped crusader to memecoins and Bitcoin mining – begs the question: is this democratizing finance, or simply exploiting the most vulnerable among us?

Quick Riches or Fool's Gold?

Imagine a retiree who has worked their whole life and saved their whole life. They’re being drawn in with the prospect of exponential returns from a Trump-backed crypto project. They have heard of the name and they believe in the brand. In response, they pour their hard earned retirement savings into an incredibly volatile asset that they barely understand. When the market goes bust, or the project can’t follow through on its pie-in-the-sky promises, they’re stuck in the shadow of green envy, an all too real aftertaste that all that glitters is not gold.

This isn’t a hypothetical scenario. We’ve witnessed it unfold over and over with other celebrity-backed scams. The promise of instant fortune is a most seductive siren song. Those with lower financial literacy are more likely to be scammed into high-risk investments, rendering them especially susceptible. So Trump really needs to know who he’s trying to target here.

The Social Justice Ledger

Let's be blunt: Trump's foray into crypto reeks of economic exploitation. Like all too many publishing houses, he’s using his noble brand to rake in the profits. This market is extremely speculative, predatory and risky, especially for low-income people and communities of color. It is these same Americans who can least afford to have their hard-earned cash snatched away. Moreover, they should avoid speculative-risk assets such as memecoins and untested DeFi initiatives.

  • Trump NFTs: Capitalizing on fanaticism.
  • Trump Memecoins: Riding the wave of hype.
  • Trump Bitcoin Mining: Backing a volatile industry.

The Trump family’s take from World Liberty Financial, the venture seeking to develop decentralized finance services, raises huge red flags. A Trump-affiliated company earns 75% of net revenue, including token sale proceeds, with the family holding 60% of World Liberty's equity. The project achieved a major milestone last month when it raised $550 million in a series of token sales following the second round. It has yet to fulfill its promise. Where is that money actually going, and who is really reaping the rewards? The question is, is this innovative finance or is this simply the latest iteration of monetizing the aspirations of people in search of opportunity? Remember Bernie Madoff? This feels similar.

This isn’t an attempt to stifle innovation — not at all — it’s about ensuring a level playing field and protecting our more vulnerable populations from predatory practices. It’s not about asking whether that was good or bad, but rather does Trump’s democratization of finance serve as a Trojan horse for wealth extraction.

Unintended Consequences Loom Large

Beyond the human stories of loss, there are potentially disastrous consequences for the broader financial system stemming from Trump’s crypto embrace. By lending his name and credibility to these half-baked projects, he’s playing with fire by legitimizing these risky investments and encouraging deregulation. What’s going to happen when the next crypto winter comes along, and everything collapses? Second, will taxpayers be on the hook when the federal government has to bail out those investors that Trump’s promises of great returns enticed?

The proposed Truth.Fi Bitcoin Plus ETF to be launched with Crypto.com is perhaps the most troubling example. Notably, the SEC closed its investigation of Crypto.com in March. Even as the first complex and preliminary line of questioning, this underscores the dangers associated with unregulated crypto exchanges. By associating himself with these projects, Trump may be able to put investors at risk for ill-conceived projects. This decision will erode public faith in our financial system.

Then comes the announcement of USD1, a dollar-pegged stablecoin. While the promise of 1:1 backing by U.S. Treasuries and cash equivalents sounds reassuring, the devil is always in the details. Who will audit these reserves? What checks will be put in place to guard against them being manipulated or defrauded? A stablecoin failure could trigger a domino effect, destabilizing the entire crypto market and potentially spilling over into the traditional financial system.

Who Holds the Accountability?

Eric Trump claims that the family’s crypto ventures have been completely above board. This is how he supports this outrageous claim by saying that he never collaborates with the White House. That's a woefully inadequate response. The Trump name still has powerful weight, and his tacit endorsement of crypto projects brings with them implicit promises to his supporters. Does he not have a moral obligation to ensure that these ventures are not harming vulnerable populations?

This isn’t simply about doing what is legally mandated. This is about doing what is ethically responsible. No matter how great the power, it always comes at a cost. In doing so, those who ultimately wield that power need to do right by those most vulnerable—our children. Of course, this isn’t the first time Trump embraced the crypto space. This abrupt reversal fuels even greater skepticism as to his true intent, and as to whether he actually has the public’s interest in mind.

Ultimately, the Trump crypto empire forces us to confront a fundamental question: what kind of financial system do we want to build? One that inspires opportunity and creativity, or one that extracts from the most vulnerable and concentrates wealth among the most powerful? I think the answer has to be in finding that happy medium. We will need a system that encourages and accelerates innovation, but encourages and accelerates regulation, that produces opportunity but enforces accountability, that chases profit but shields those most vulnerable. We need guard rails, not gold rushes.