On May 6, 2025, shares of Freight Technologies – a lesser-known transportation company specializing in supply chain logistics – plummeted to $1.50, losing 30% of their value, just three days after announcing plans to buy TRUMP meme coin to accumulate treasury assets. Is this a smart strategy or a hidden risk? Let's analyze in detail.
Freight Technologies Invests in TRUMP Coin
Freight Technologies, founded in 2015, has signed an agreement with an institutional investor to raise up to $20 million through a convertible bond issuance, with the first tranche of $1 million. According to CEO Javier Selgas, the company will use this money to buy $TRUMP – a meme coin associated with U.S. President Donald Trump – to diversify its crypto treasury and particularly to 'promote fair, balanced, and free trade between the U.S. and Mexico.' He emphasized that Mexico is the U.S.'s top trading partner, and this investment is a way for the company to express its stance on tariff risks.
Previously, #FreightTechnologies also purchased $5.2 million in $FET (Fetch.ai) tokens in April, used for complex machine learning AI blockchain, indicating a trend towards investing in digital assets.
TRUMP Price Volatility and Freight Stock
TRUMP price, launching in January 2025 with a peak of $74, has dropped 25.5% in the past 7 days, falling below $11, according to crypto data. The decline began following last month's announcement about an exclusive evening at Trump National Club for 220 top holders (25 people to meet the President), which temporarily boosted the price but stirred up controversy over 'paying to play.' Meanwhile, Freight stock soared to $3.83 on Friday after the announcement but plummeted 30% to $1.50 on Monday, reflecting investor skepticism.
Ethical Controversy and Market Impact
The purchase of TRUMP has sparked significant controversy. Journalist Ryan Grim from Drop Site referred to it as a 'bribery bucket,' arguing that companies not investing in TRUMP would struggle to influence policy. Senator Elizabeth Warren and legal scholars are also concerned that this meme coin allows for government bribery without leaving a trace, calling for an investigation into foreign influence. The drop in TRUMP's price and Freight's stock raises suspicions about whether President Trump is using his position to promote personal business interests, especially when his family has financial ties to the crypto industry.
Impact on the Crypto Market
This event signals many things:
Short-term volatility: TRUMP price dropped 25.5% and Freight stock lost 30%, indicating high risk when investing in meme coins, similar to Bitcoin's volatility ($94,800) after tariff news.
Increased interest in altcoins: Although controversial, this move could boost other altcoin funds, such as $BNB ($599, VanEck proposed ETF).
Emphasizing risk management: Investors need to be cautious with projects tied to political factors, especially as crypto fund inflows reached $3.4 billion last week.
Conclusion: Is Freight Technologies Taking a Risky Bet?
Freight Technologies invested $20 million in TRUMP meme coin to diversify its treasury and express a trade position with Mexico, but the 25.5% drop in TRUMP's price and the company's 30% stock decline raised significant questions. The ethical controversy over political influence further complicates the situation. Despite the long-term potential from AI (FET token), investors need to monitor closely to assess risks and opportunities in this highly volatile crypto market.
Risk warning: Crypto investment carries high risks due to price volatility and legal uncertainties. Consider carefully before participating. #anhbacong
