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Donald Trump’s cryptocurrency investments could help pay off his $450 million in damages
Donald Trump’s cryptocurrency investments could help pay off his $450 million in damages
Former President Donald Trump was ordered to pay $355 million fines on charges of fraud and profiting from the sale of miscellaneous goods.
The fines accrued interest at a rate of 9% per year and ballooned to current liabilities in excess of $450 million. The fine is growing at a rate of 2.6 million dollars per month. The sanctions put Trump at risk of a court seizing his assets.
With an expensive presidential campaign and high levels of financial scrutiny, Trump’s ability to repay the fine is questionable, and many question whether he will be able to repay it at all.
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But Trump’s cryptocurrency holdings are not often factored into this ordeal. While the holdings are just a drop in the bucket compared to the amount owed, the potential price appreciation could help Trump pay the penalties.
Trump’s crypto wallet was discovered by Arkham Intelligence, which cross-referenced Trump’s financial statements with transactions on the blockchain to find his wallet wallet address.
The wallet holds several million dollars in cryptocurrency, the majority of which lies between three different tokens: Ethereum (ETH) Wrapped Ethereum (WETH) and MAGA Coin (TRUMP).
ETH and WETH were obtained through the Trump Digital Trading Cards non-fungible token (NFT) project. Although Trump was not affiliated with the project, the creators granted him royalties in excess of 1,700 ETH. In December, Trump sold 1,075 of these ETH tokenswhich generated revenue of $2.4 million.
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As for potential growth, Trump’s roughly 700 remaining ETH could be worth as much as $7 million by the end of 2025, based on a price forecast of $10,000. Trump may also continue to receive money from NFT projects and royalties in the future.
While ETH could see growth in the coming months and years, Trump could generate significantly more profits from MAGA Coin (TRUMP). The creators of this token sent Trump 580,000 tokens when the project launched in August. The tokens were worth a few thousand dollars at the time, but have since appreciated to more than $3 million.
The token could continue to grow if Trump wins the elections in November or if he directly supports the project. Other meme coins, such as dogwifhat (WIF) and Bonk (BONK) have attracted investments in the range of several billion dollars. So, if MAGA Coin were to reach a market cap of $3 billion, similar to WIF, the price would be around $70 and Trump’s position would be worth over $40 million.
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This is unlikely to happen, as a market capitalization of $3 billion is far from the current level of around $250 million, and numerous events would have to occur to reach that level.
With this in mind, Trump’s crypto transactions have a small chance of providing relief to his financial situation. Since the wallet is public, anyone can monitor their positions and how much they own in cryptocurrencies.
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This article Donald Trump’s cryptocurrency investments could help pay off his $450 million in damages originally appeared on Benzinga.com
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