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▲ Trump Coin (TRUMP), World Liberty Financial (WLFI)/AI generated image
The controversy surrounding the Trump family's cryptocurrency profits has once again come to the forefront of the market, cited as the cause of Bitcoin (BTC)'s sluggish performance. Renowned investor Ross Gerber directly criticized that Donald Trump's cryptocurrency business profits have eroded investor confidence and are hindering Bitcoin's rebound.
According to cryptocurrency media outlet Benzinga on July 2 (local time), Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, criticized Trump's disclosure of cryptocurrency business profits, stating, "The scam is real." He argued that this controversy is "the main reason why Bitcoin is going down and not going anywhere."
The point Gerber raised issue with was Trump's disclosure that he earned over $1 billion from cryptocurrency businesses in his first year as president. Benzinga reported that these businesses include World Liberty Financial and the Official Trump (TRUMP) memecoin. Royalty income related to Trump memecoins alone was reported to exceed $635 million.
Investor losses are also at the heart of the controversy. Benzinga reported that investors who purchased Trump memecoins at their peak suffered 97% losses. Gerber believes that the combination of Trump's cryptocurrency profits and individual investor losses has weakened market confidence, and this ripple effect is weighing down Bitcoin investor sentiment.
Criticism from the political sphere is also intensifying. Minnesota Governor Tim Walz criticized Trump's business activities and family dealings as those of "the most corrupt president in American history." Senator Elizabeth Warren also argued for stronger cryptocurrency legislation to prevent Trump and his family from profiting from cryptocurrencies.
The White House denied allegations of conflict of interest. A White House spokesperson stated that all actions of the Trump administration are "in the best interest of the American people." When questioned about cryptocurrency profits, Trump also explained that investment funds are managed by institutions with which he does not directly communicate. He stated that he has "a lot of money" and that when these funds are entrusted to institutions, the institutions decide on their allocation.
Despite the controversy, Bitcoin showed a short-term rebound. According to Benzinga Pro data, at the time of writing, Bitcoin was trading at $60,090.98, up 2.43% over 24 hours. However, Gerber's remarks focus more on political trust risks than price rebound. As the controversy over Trump's cryptocurrency profits, individual investor losses, and regulatory legislative debates simultaneously grow, the cryptocurrency market faces the greater challenge of restoring trust rather than just price.
[Article Key Summary]
-Ross Gerber claimed that Trump's cryptocurrency profits exceeding $1 billion are the main reason for Bitcoin's sluggish performance.
-Royalty income from Trump memecoins reportedly exceeded $635 million, and investors who bought at the peak suffered 97% losses.
-The White House denied allegations of conflict of interest, but Warren called for stronger legislation to prevent the Trump family from profiting from cryptocurrencies.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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