The Hidden Drives of Wealth Growth
Since the election, the Trump family's cryptocurrency business has grown explosively, driven primarily by their company World Liberty Financial's issuance of the stablecoin USD1. The circulation of this currency has surpassed billions of dollars, generating significant interest income for the family. Many are curious about a covert network of partnerships behind this wealth growth, with the presence of Binance, the world's largest crypto exchange, frequently noted.
PancakeSwap Partnership and Binance Connection
In June, World Liberty Financial formed a partnership with the decentralized trading platform PancakeSwap, boosting the market adoption of USD1. Following the announcement, USD1's trading volume on PancakeSwap surged dramatically. However, insiders reveal that while PancakeSwap claims to be run by an anonymous "chef" team, it was actually incubated by Binance back in 2020 and operates on Binance's blockchain network. This indicates that the trading platform driving USD1's growth has deep technical and managerial ties with Binance.
Incentive Campaigns Ignite Trading Volume
To expand USD1 trading volumes, PancakeSwap launched a "liquidity contest" with a million-dollar prize, encouraging frequent trading of USD1. This strategy quickly proved effective, with USD1's daily trading volume exceeding $1 billion at one point, comprising over 90% of its global trading volume. Industry analysts believe this short-term high-incentive model not only boosted the currency's market visibility but also solidified World Liberty's profit foundation.
Binance Holdings and Market Flow
Blockchain data shows that Binance holds a large amount of USD1 and refrains from liquidation over the long term. This practice is uncommon in the stablecoin market and helps the issuer continuously earn interest income through capital reserves. Furthermore, Binance channels resources to USD1, including promoting related token trading on its platform, which further enhances the currency's use cases and market depth.
Interweaving of Politics and Business
Behind business collaborations, Binance founder Zhao Changpeng's political actions have also drawn attention. Recently facing jail time and hefty fines for money laundering allegations, Zhao hired lobbyists closely linked to the Trump family in a bid to secure a presidential pardon. Although the parties involved deny any direct connection between commercial deals and pardon lobbying, the timing of these events raises questions about possible exchanges of interests.
Chinese Capital and Regional Expansion
The Trump family's cryptocurrency endeavours are notably linked to Chinese capital. PancakeSwap's website was initially registered in Shanghai, with the majority of the USD1 trading community comprising Chinese users. Sources disclose that prominent crypto entrepreneur Justin Sun is a major investor in World Liberty, which is also exploring collaboration with Hong Kong-based HashKey, whose shareholders have Chinese ties.
The intertwining of cross-border capital and technology extends the Trump family's crypto empire beyond the US, reaching into Asian markets, particularly Hong Kong, an international crypto hub.
Prospects and Risks
The Trump family's wealth channel through USD1 and the crypto market undoubtedly marks a commercial breakthrough, yet the intertwining of politics, regulation, and international capital presents potential uncertainties. Moving forward, with increasing regulation, changes in international relations, and sustained public attention, this crypto wealth empire may face more challenges.
