A Blockchain Company Invested in a Trump Family-Backed Cryptocurrency. It Has Been a Disaster for Shareholders.

In mid-August, President Donald Trump’s sons Eric Trump and Donald Trump Jr. joined their business partners to ring the Nasdaq opening bell to mark the start of a new partnership: a deal with blockchain company ALT5 Sigma that would have it invest in a cryptocurrency the Trump family has a stake in.

Since the deal was struck, ALT5 has suspended its CEO, delayed the filing of its third-quarter earnings report, and lost four-fifths of its value in the stock market.

ALT5 is one of the new wave of “digital asset treasury” companies, which are publicly traded stocks that hold a reservoir of cryptocurrencies. The largest of these companies, Michael Saylor’s Strategy, holds Bitcoin. ALT5 instead holds a cryptocurrency token issued by World Liberty Financial, a privately held company co-founded by Donald Trump and the two sons, among other executives. As of October, ALT5 held 7.28 billion of WLFI, a so-called governance token.

World Liberty also issues one of the fastest-growing stablecoins, called USD1, and says it is developing other blockchain projects. Stablecoins, such as USD1, are typically pegged to the dollar and backed by an equivalent amount of reserves, while other tokens, such as WLFI, swing in price on exchanges depending on investor demand.

https://www.msn.com/en-us/money/topstocks/a-blockchain-company-invested-in-a-trump-family-backed-cryptocurrency-it-has-been-a-disaster-for-shareholders/ar-AA1R861q

Two errors, cryptocurrency and Trump.