Economist Justin Wolfers raised concerns on Wednesday about a potential federal bailout if the Trump family-promoted cryptocurrency ventures fall
Wolfers Predicts A Bubble
During an interview with MSNBC, Wolfers voiced apprehensions about the Trump family’s reported $5 billion windfall from the recent launch of World Liberty Financial (WLFI) token. He said that the “majority” of the president’s wealth now comes from the cryptocurrency industry, including the Official Trump (CRYPTO: TRUMP) and Official Melania (CRYPTO: MELANIA) coins.
“They’re trying to sell this now to working- and middle-class Americans as an investment where it’s no such thing,” the economist said, warning about a potential financial bubble.
“You would think normally you would just let investors who took such outrageous gambles take the loss. But the oldest trick in their playbook is to privatize the gains and socialize the losses,” Wolfers stated.
‘Pure Grifter Bailout’ On The Cards
He added that Trump will put together a “pure grifter bailout” for something that impacts very few American families.
“Would love to see Republican congressional reps go on the record on this now, before the President’s private interests lead them to wilt under pressure later,” Wolfers said.
See Also: Trump Family’s Stake Swells To $1.46 Billion As American Bitcoin Makes Stock Market Debut
Meanwhile, Pete Buttigieg, former Secretary of Transportation, lashed out at the first family’s $5 billion paper gains.
“This level of corruption is not normal or acceptable. Even if we are exhausted by each report of it going further and further, we can never grow numb to it,” Buttigieg said.
The White House didn’t immediately return Benzinga’s request for comment.
WLFI Tumbles After Initial Momentum
The Trump family’s financial gains from the WLFI token have become a big subject of controversy. Sen. Elizabeth Warren (D-Mass.) described it as “plain and simple” corruption.
Controversial cryptocurrency mogul Justin Sun, who faced legal issues with the SEC in the past, is one of the major investors, holding 3 billion WLFI tokens, valued at over $540 million, according to Arkham Intelligence.
Price Action: Meanwhile, the token has seen a significant drop in value since its debut. At the time of writing, it was exchanging hands at $0.1804, down 20.38% in the last 24 hours, and over 55% from its peak, according to data from Benzinga Pro
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Photo: Joey Sussman from Shutterstock
