US President Donald Trump’s eldest son, Eric Trump, revealed a collaboration between World Liberty Financial (WLFI) and the TRUMP meme coin.
With both ecosystems inspired by the family and, more closely, the same individual, Donald Trump, community members cry foul, citing Sam Bankman-Fried’s FTX and Alameda Research woes.
Eric Trump Announces Major Stake by World Liberty Financial
The TRUMP meme coin has risen 7% in the last 24 hours and was trading for $10.37 as of this writing. The surge follows a high-profile announcement from Eric Trump, who revealed a new partnership between the token and World Liberty Financial (WLFI).
TRUMP Price Performance. Source: CoinGecko
The financial firm, partially owned by a Trump entity, plans to acquire a “substantial position” in TRUMP for its Long-Term Treasury.
“I am proud to announce the TRUMP Meme Coin has aligned with World Liberty Financial… We’re proud to announce that World Liberty Financial plans to acquire a substantial position in TRUMP for their Long-Term Treasury,” Eric Trump posted on X (Twitter).
Trump’s DeFi project, World Liberty Financial, echoed the announcement on its official Twitter account, citing common values and mission.
The Trump meme and WLFI may be different lanes, but they share the same highway. Same values, same mission—amplifying American strength through innovation. 🦅☝️ WLFI (@worldlibertyfi) June 6, 2025
The announcement sparked investor enthusiasm. Supporters quickly celebrated the move as a strategic step toward integrating patriotism and crypto innovation.
According to CoinWings, a popular account on X and WLFI investor, the combination of the two could generate tremendous momentum.
Beyond cheer, however, there were also equal parts skepticism, amid suspicion and ethical concerns.
Backlash And Ethical Storm Around TRUMP Coin
Critics immediately raised questions about the deal’s ethics and transparency. Crypto trader Clemente called the collaboration a “joke,” while another user pointed to a potential scandal and likely lawsuit.
Meanwhile, talk of manipulation and insider trading is also rising after a World Liberty Financial advisor shorted TRUMP with $1 million and flipped long.
Specifically, the advisor, Ogle, opened a 10x leveraged short position on TRUMP. He then closed it at a $188,348 loss and went long again on the same token, this time with a 4x leveraged position worth $3 million.
“What kind of operation you guys got running over there?” one user chimed.
If the TRUMP coin price falls below $8, Ogle will be liquidated.
Some users are comparing WLFI’s financial practices to those of Alameda Research, the controversial trading arm of the now-defunct FTX exchange.
Critics argue that insider trading and profit-seeking may be behind the patriotic branding. According to an April 2025 NewYork Times investigation, 60% of WLFI is owned by a Trump-affiliated entity. Meanwhile, 75% of its revenue stems from TRUMP coin sales.
This has raised major ethical concerns around blending political power and personal profit.
Regulatory uncertainty adds another layer of complexity. While the SEC has classified TRUMP as a non-security due to its speculative meme-based nature, the CFTC claims it falls under commodity jurisdiction.
SEC Commissioner Hester Peirce has stated that the TRUMP token is outside the SEC’s regulatory scope, indicating that investors should not expect guidance on the meme coin. In February, the SEC announced that most meme coins are not classified as securities under U.S. federal…— LondonCryptoClub (@LDNCryptoClub) June 1, 2025
Meanwhile, in January, Trump’s crypto czar, David Sachs, said TRUMP coin was considered a collectible, quashing claims of conflict of interest.
“This means you should sell TRUMP just like when Eric Trump told you to buy $ETH and it dumped 50% over the next month,” wrote one user, referencing prior dubious trading advice.
A Forbes report from May 2025 estimates WLFI has generated $550 million in sales during Trump’s second term, potentially netting the family $400 million. Reports from The Verge also show strategic shorts of the TRUMP coin by contest winners and insiders.
Against this backdrop, concerns arise about whether this is a long-term treasury play or another well-dressed pump.
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