A new report claims that President Trump and his immediate family receive most of WLFI’s revenues. The Trumps are entitled to 75% of token sale revenues, about $400 million, and 60% of other incomes.

If these numbers are even partially accurate, they raise significant concerns about potential conflicts of interest. They also raise questions about the broader implications for transparency and accountability regarding Trump’s crypto policies.

Does the Trump Family Receive WLFI Proceeds?

World Liberty Financial (WLFI), a project affiliated with President Trump, has made a lot of waves in the crypto space since the end of last year. After persistent rumors of a Binance partnership, WLFI officially launched a new stablecoin, USD1. There is no clear evidence of Binance’s involvement in this launch. However, a new report from Reuters has disclosed some disturbing details.

Essentially, it claims that it has found evidence of how much of WLFI’s revenues go directly to Trump’s family. Trump will get 75% of revenues from token sales and 60% from subsequent operations. WLFI completed its major token sale, which would, therefore, entitle the Trumps to about $400 million.

Reuters calculates that 5% of proceeds from this token sale would actually fund WLFI’s platform, with the rest going to other co-founders. Further, its buyers are not able to actually resell their tokens, and it’s unclear what governance actions they could influence. There’s not an apparent reason for the average retail trader to actually buy these assets.

If these numbers are true, they could represent a serious conflict of interest and a dire threat to the US economy. First, community leaders like Vitalik Buterin warned of corruption from political meme coins like TRUMP. If Trump gets a cut of WLFI’s token sales, that’s already a huge avenue for misuse.

Additionally, since Trump is making huge changes to US financial regulators, there may not be anyone to investigate WLFI corruption allegations. For example, TRON founder Justin Sun invested $30 million into WLFI, and the SEC settled a fraud case against him months later. The SEC has been settling all its crypto enforcement actions, but this investment still looks relevant.

“You’ve got the guy in charge who is responsible for his own regulation. WLFI tokens would be the perfect vehicle for governments or oligarchs overseas to funnel money to the president,” former regulator Ross Delston claimed.

The biggest danger might not even come from political corruption or fears of centralization in crypto. Trump recently outlined a plan to use stablecoins to promote dollar dominance, and WLFI now has its own stablecoin. It also has around $111 million in unrealized losses due to its crypto investments and claims it will use “other cash equivalents” in USD1’s reserves.

It’s hard to overstate the potential risks involved. Given Trump’s financial stake in WLFI, there’s a clear incentive to promote the firm’s stablecoin as part of his “dollar dominance” agenda. If this leads to widespread investment in USD1 and the peg doesn’t hold, the consequences could ripple across the entire crypto market.

Simply put, this sort of business arrangement is totally unprecedented for a sitting US President. A few Senators are already investigating Trump’s connections with WLFI. However, their lack of political power and defanged federal regulators may hamper their ability to change anything.

Pi Network continues to struggle in the market as its price remains on a downward trajectory. Despite earlier optimism, investors have been increasingly skeptical of the coin, contributing to a prolonged downtrend. 

The uncertainty around its value suggests Pi Network may be headed for a new all-time low (ATL).

Pi Network Witnesses Outflows

The ADX (Average Directional Index) has recently crossed the 25.0 threshold, indicating that the current bearish trend is gaining momentum. This is a concerning signal for Pi Network’s price, as the rising bearishness suggests that it will be increasingly difficult for the cryptocurrency to recover in the short term. With the ADX pointing towards sustained negative market forces, the pressure on Pi Network’s price will likely intensify as the token nears its previous ATL.

The growing strength of the bearish trend is compounded by investor uncertainty, with many questioning the token’s long-term viability. This uncertainty can lead to further selling and a lack of fresh buying support, making it even harder for Pi Network to find a solid foundation for recovery.

Pi Network’s macro momentum also paints a grim picture for the altcoin. The Chaikin Money Flow (CMF) indicator, which measures the volume of money flowing into and out of a coin, has been deeply negative. Although there has been a slight uptick, the indicator remains in the negative zone, signaling that investors are still reluctant to buy into the token.

The slight increase in CMF reflects minor capital inflows, but this could be short-lived if the skepticism persists. With investors hesitating and outflows continuing, Pi Network’s price faces significant challenges. The current trend suggests that more outflows could occur if the coin reaches a new ATL.

PI Price Nears New Low

Pi Network is currently trading at $0.70, just above its ATL of $0.62. The altcoin saw a 12.8% decline over the past 24 hours after failing to reclaim $0.87 as support. This failure to regain previous support levels shows the continued lack of investor confidence.

If the bearish trend persists, Pi Network is likely to fall through the $0.62 support level, potentially dropping to $0.50. A new ATL could be set as the market sentiment continues to weigh heavily on the price, leading to further losses for existing investors.

The only way to reverse the bearish outlook is for investors to change their approach and capitalize on low prices. Increased inflows could potentially drive Pi Network’s price back above $0.87, and if it surpasses the $1.00 level, it would reclaim critical support and signal a possible recovery for the altcoin.