opinion

Crypto SWOT: Trump’s crypto venture, World Liberty Financial, plans to launch a dollar-backed stablecoin

Kitco Media
By Frank E Holmes
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Crypto SWOT: Trump’s crypto venture, World Liberty Financial, plans to launch a dollar-backed stablecoin teaser image

Strengths

  • According to CoinMarketCap, the best performing cryptocurrency for the week was Cronos, up 37.48%.
  • Turkey’s crypto exchange, Paribu, has received regulatory approval to acquire digital media company Aposto, marking a rare merger between the crypto and media sectors in the country.
  • Curve Dao has broken above its 50-day moving average, a positive technical move during a time when Bitcoin, Ethereum and Solana are all trading below their 50-day moving averages. 

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Weaknesses

  • According to CoinMarketCap, the worst performing cryptocurrency for the week was PancakeSwap, down 23.35%.
  • In the small Argentine town of San Pedro, thousands of residents were swept into a Ponzi-style crypto scheme called RainbowEx—fronted by a mysterious figure known as "La China"—pouring in millions of dollars in hopes of easy profits before the illusion collapsed. The scheme left behind financial ruin, arrests, and a community divided.
  • Recent tariff threats from U.S. President Trump caused sharp declines in major cryptocurrencies like Dogecoin and XRP this week, highlighting the market’s sensitivity to geopolitical news and lack of insulation from broader economic pressures.

Opportunities

  • President Trump’s crypto venture, World Liberty Financial, plans to launch a U.S. dollar–backed stablecoin called USD1, entering the competitive $238 billion market dominated by Tether and Circle. The hopes are to leverage Trump’s influence to secure key exchange partnerships amid rising regulatory scrutiny.
  • Senate Republicans are racing to repeal Biden-era regulations using the Congressional Review Act before the early May deadline, recently sending a resolution to President Trump to block an IRS rule on crypto tax reporting. Additional disapproval measures are expected on environmental, financial, and emissions policies.
  • The SEC has closed its investigation into crypto gaming firm Immutable and related parties without finding any wrongdoing. This marks a broad regulatory shift as the agency pauses or dismisses multiple crypto-related cases under the Trump administration’s more industry-friendly stance.

Threats

  • Galaxy Digital will pay $200 million in penalties to settle charges from the New York Attorney General for promoting the failed Luna cryptocurrency without disclosing its intent to sell; despite claiming it was misled by Luna’s creators.
  • GameStop shares plunged after the company announced a $1.3 billion convertible bond sale to fund Bitcoin purchases. The company is adopting a controversial strategy inspired by Michael Saylor as it seeks to diversify from its declining video game business amid rising investor skepticism.
  • The rise of quantum computing threatens the cryptographic foundations of major blockchains like Bitcoin and Ethereum, as future quantum machines could potentially break the encryption securing wallets and transactions.
Kitco Media

Frank E Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

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