The Trump family's cryptocurrency empire is experiencing unprecedented internal division, with this three-day intense struggle essentially being a contest for dominance in the cryptocurrency market. One side is led by Trump's eldest son, Donald Trump Jr., with World Liberty Financial (WLFI) having the family's official endorsement; the other side is helmed by Trump's long-time business partner Bill Zanker, leading the Fight Fight Fight team, which has amassed significant market influence through the early launch of the TRUMP meme coin.
The conflict was ignited on June 3rd—well-known NFT trading platform Magic Eden suddenly announced the launch of the "official TRUMP wallet," claiming to have obtained authorization from the Trump brand. This announcement quickly triggered market frenzy, with Magic Eden's native token ME surging 40%, and the number of Trumpwallet registrations exceeding 25,000 within half an hour. However, the plot took a sharp turn within 24 hours, as Trump's three sons collectively distanced themselves on social media, with second son Eric issuing a stern warning: "Any project using our name without approval should be very cautious," implying potential legal action.
Severe market turbulence: Investors' terrifying 72 hours.
This family feud directly triggered severe fluctuations in the cryptocurrency market. On the day the incident broke out on June 3rd, the price of $TRUMP tokens plummeted from a high of $75 to $12, with a single-day volatility of 84%, causing substantial losses for countless investors who chased the price. Market panic spread, even impacting mainstream cryptocurrencies like Bitcoin, leading BTC to briefly fall below the $100,000 mark.
However, a dramatic reversal occurred on June 7th—WLFI suddenly announced a large-scale increase in its holdings of $TRUMP tokens, directly purchasing 80% of the circulating supply, effectively manipulating the price back to $18. This blatant price manipulation drew significant attention from regulators, with New York Senator Jeff Merkley directly labeling the list of $TRUMP token holders as the "president's potential beneficiary list," calling for a comprehensive SEC investigation.
Political storm: The cryptocurrency regulatory dilemma under the tug-of-war between the two parties.
This turmoil quickly evolved into a political issue. Democratic lawmakers collectively spoke out, accusing the Trump family of using presidential powers to "harvest retail investors" in the cryptocurrency market. More notably, there was a clear split within the Republican Party, with even Trump's staunch ally, Wyoming Senator Cynthia Lummis, unusually questioning this behavior of "commercializing the presidential brand."
In-depth analysis shows that this infighting is essentially the Trump family's struggle for brand control in the Web3 era. WLFI plans to launch an official wallet aimed at establishing a "presidential standard" in the cryptocurrency field, while the Fight Fight Fight team hopes to continue the successful trajectory of NFTs and meme coins. Interestingly, the central figure, Trump himself, has remained silent, and this "strategic ambiguity" may be the most astute business strategy—regardless of which side wins, the Trump brand will benefit.
Warnings and opportunities in the cryptocurrency market.
This farce exposes the deep risks of celebrity cryptocurrencies:
Brand authorization is vague: The connection between the project and the celebrity family is difficult to verify.
Price manipulation is evident: Large holders can easily sway the market.
Regulatory vacuum: Existing laws struggle to constrain this new type of financial behavior.
For ordinary investors, this is undoubtedly an expensive lesson in risk education. As former Coinbase executive Nick Tomaino stated: "When a presidential family holds 80% of the token supply, this is essentially a predatory behavior." In the cryptocurrency market, a new land of opportunities and traps, maintaining rational judgment is more important than chasing trends.
