Trump’s Crypto Coin: A Stable Investment or Just Stable Folly?

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Key Highlights

  • Binance, in a move reminiscent of a lavish buffet, hoards a staggering 87% of USD1, intertwining it with the fortunes of Mr. Trump and his crypto escapades-adding roughly $1 billion to his already swollen coffers.
  • MGX, that illustrious fund from Abu Dhabi, decided to toss $2 billion into the USD1 pot, while Binance’s magical conversion of BUSD has only bolstered USD1’s stature in the trading milieu.
  • Meanwhile, the $WLFI token has taken a nosedive of 66%, a fate one might describe as unfortunate, particularly with USD1’s high concentration on Binance raising eyebrows about foreign entanglements and potential national security concerns.

Ah, Binance! The grand maestro of cryptocurrency exchanges, now controlling an astonishing 87% of USD1, the stablecoin linked to the Trump family’s latest digital dalliance. One might even say this concentration resembles a rather overzealous display of wealth, surpassing any other major stablecoin held at a single exchange. To put it bluntly, between its own wallets and the accounts of eager users, Binance now possesses approximately $4.7 billion of USD1’s total supply of $5.4 billion. Quite the monopoly, wouldn’t you agree?

This delightful synergy between Binance and Trump’s crypto venture, World Liberty Financial, is akin to a well-choreographed dance, where each step strengthens the other-adding around $1 billion to Trump’s personal vault of riches. According to the ever-reliable Arkham Intel, no other significant stablecoin flaunts such a concentrated presence at a single exchange.

The notoriety of USD1 surged like an overzealous soufflé when Binance dangled $40 million in rewards for holders of the stablecoin. Shortly thereafter, World Liberty Financial decided to grace Binance with the same amount of $WLFI tokens. However, with Binance barred from serving U.S. customers post its 2023 Treasury settlement, one suspects that a majority of USD1 is likely resting comfortably outside the good ol’ U.S. of A., highlighting Binance’s pivotal role in USD1’s ecosystem.

Binance’s Role and Trump Connection

In their usual nonchalant fashion, Binance proclaimed that they manage USD1 just as they do with other cryptocurrencies. A spokesperson graciously informed Forbes, “It is not uncommon for large exchanges to hold large amounts of certain tokens.” How enlightening!

Yet, as if scripted from a political drama, the association between Binance and President Trump-who, incidentally, pardoned Changpeng Zhao-has raised more than a few eyebrows. World Liberty Financial referred to its promotional antics as ‘standard practice’, vehemently denying any undue influence from Binance. Zhao’s attorney, meanwhile, insisted the pardon was merely a rectification of a past injustice, while White House press secretary Karoline Leavitt assured us all that Trump is indeed steering clear of conflicts of interest.

Experts, however, have cast a wary eye on this unusual concentration. Researcher Molly White remarked sagely, “There is at least theoretical risk when a token is highly concentrated at one exchange.” One can’t help but wonder what leverage Binance might wield over World Liberty Financial. Still, the company insists the listing is no different than brands vying for shelf space in a competitive marketplace. Binance proudly declared, “We employ robust risk management measures to provide a secure trading environment”-a reassuring sentiment if ever there was one.

Funding and Corporate Structure

In a twist of corporate intrigue, a Trump-linked LLC owns a whopping 38% of World Liberty Financial, along with a staggering 22.5 billion $WLFI tokens, garnering 75% of all $WLFI sales. In a splendid turn of events, Trump reported earning $57.4 million from this enterprise in 2024. Quite the lucrative venture, if I do say so!

Launched in March 2025, USD1 is touted as a stablecoin redeemable 1-to-1 with U.S. dollars, propped up by U.S. Treasurys and money market assets accruing a respectable 3.6% interest. What a financial masterpiece!

In May, MGX, that illustrious fund, decided it was a splendid idea to invest $2 billion in USD1 via Binance, subsequently boosting the interest earnings of World Liberty Financial. By December 2025, Binance had successfully transformed its BUSD holdings into USD1, further escalating the market cap of this already inflated stablecoin.

But lo and behold! The government has intervened, investigating a rather discreet $500 million investment by a member of the UAE royal family in World Liberty Financial. They are now pondering whether the deal has muddied the waters of U.S. policy, marred by conflicts of interest, or jeopardized national security.

Market Trends and Token Performance

The $WLFI token recently plummeted to a disheartening low of $0.09831, a catastrophic 66% fall from its prior glory. While USD1 maintains a facade of stability, thanks to its backing, the overwhelming concentration on Binance does add an element of risk one might find quite alarming. Meanwhile, Bitcoin has danced back from its lows, peaking at $69,660, while Ethereum languishes at $2,063. As reported by CoinMarketCap, the speculative trading fueled by those tantalizing $WLFI rewards linked to USD1 highlights both opportunity and caution for potential investors.

Former SEC Senior Advisor Corey Frayer warned that the peculiar concentration of USD1 suggests it may not be the genuine stablecoin it purports to be. With Binance’s U.S. affiliate clutching a mere $1,119 of USD1, it seems evident that foreign entities reign supreme in the exchange’s stablecoin landscape. Ah, what a tangled web we weave!

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2026-02-10 11:31