Will Trump Continue Selling Products That Benefit Him Personally While He's President?

A journalist asked, “Do you intend to continue selling products that benefit yourself personally while you're president?” at Trump's press conference

A journalist's question about Trump selling products that might benefit him personally, sparked a surprising exchange at the President's press conference.

"Do you intend to continue selling products that benefit yourself personally while you're president?" the journalist asked.

Trump's response was a bit disoriented as he launched a new token, he wasn't fully aware of its success.

"Well, I don't know if it benefited. I don't know where it is. I don't know much about it other than I launched it. I launched Trumpcoin and MelaniaCoin. I heard it was very successful. I haven't checked it. Where is it today?"

When the journalist stated that it was a "huge success" and people are making "billions," Trump expressed disbelief.

"Really? How much?" he asked.

"Several billion dollars, sir. It seems like in the last several days they're up several billion. Several billion, that's peanuts for these guys," said the journalist.

According to MarketWatch, estimates of Trump's reported profit from the launch of Trumpcoin and MelaniaCoin vary, but they could reach up to $7 billion, considering an 80% founder's fee on a fully diluted valuation of $8.75 billion.

However, Forbes explained that the confusion around $TRUMP's valuation stems from applying inflated metrics like Fully Diluted Valuation (FDV) and assuming the token's current price will remain constant despite future dilution.

More realistic estimates based on market cap valuation (~$6.2 billion for an 80% stake) are still uncertain, given the potential for price declines and unclear ownership again. Also, the market cap is a common way to value publicly traded companies, making it a more familiar metric.

"We can't assume that the price will remain constant over time, especially with the potential for future dilution as new tokens are sold to raise capital," explained Forbes.

"Finally, and perhaps most importantly, we need to consider the president's personal stake in the tokens. While reports claim he holds an 80% founder's fee, this is a significant but not controlling interest in the broader tokens and protocols."

The cryptocurrency markets are known for their high volatility, and valuation figures can change drastically within short periods.

Since Trump's term began, the crypto industry has experienced some notable victories. The U.S. Securities and Exchange Commission eradicated an accounting regulation that had no basis in Generally Accepted Accounting Principles (GAAP).

Moreover, David Sacks issued an executive order instructing a committee to evaluate and recommend revisions to crypto laws within 180 days, and to contemplate creating a strategic governmental reserve of cryptocurrencies within six months.

The industry, which felt unjustly targeted by the Biden administration and heavily backed Trump's victory hopes, is eager for the new president's assistance in integrating crypto more prominently into mainstream financial systems.

Trump has pledged a less stringent regulatory approach and appointed pro-crypto officials to take on crucial government roles.

Many Bitcoin enthusiasts and investors argue that government-backed currencies are usually susceptible to devaluation, and increased government involvement will stabilize future price fluctuations, lending them more credibility and further driving up prices. However, the risks are substantial.