To be fair, let’s admit that the intersection of politics and cryptocurrency has been a bit of a minefield from the get-go. Throw the Trump name into the mix, and you’ve got yourself a volatility cocktail. Even the most experienced investor might find themselves nursing a wicked case of sobriety surprise. Before you hop on the crypto bros train to “make crypto great again,” hold on a second and slow your roll. It’s time to retroactively look at three BIG red flags that should have you raising an eyebrow. I know, the allure is strong, but remember: caveat emptor.

Conflicts of Interest Abound

Contrast this with a real-world situation where the President’s policies could affect the value of an asset owned by his family. Sounds like a movie plot, right? Well, it's potentially reality. Trump's potential policy decisions on crypto could directly influence Bitcoin's value, the stock price of Trump Media & Technology Group (TMTG), and the operations of American Bitcoin Corporation (co-founded by Eric Trump and Hut 8).

This is more than an optics play. It creates a real opportunity for self-dealing. And how can you be sure that decisions are in the country’s best long term interests? Or are they instead being created to increase the value of a Trump-connected crypto asset? The answer is, you can't. That conflict is actually baked into the cake.

Unfortunately, some of the same politicians want to preemptively legislate away these conflicts. It’s not going to happen, I don’t believe this legislation will go through.

The regulatory landscape is another minefield. Though crypto regulations continue to evolve, future rulings will have a substantial effect on the worth of these joint ventures. What if regulators really do crack the hammer down and chase memecoins out of dodge? What if Bitcoin ETFs are subjected to heightened scrutiny? Even the uncertainty should be enough to raise red flags that would make any prudent investor pause. It’s akin to constructing a home atop moving sand – thrilling for a time, perhaps, but unsustainable and dangerous in the long term.

Valuation: Hype or Substance?

Let's talk about the elephant in the room: the $TRUMP memecoin. A memecoin associated with a former president? The absurdity is almost poetic. Before you start dreaming of Lamborghinis, ask yourself: what's actually backing this thing? Is it revolutionary technology? Groundbreaking innovation? Or is it just chasing the hype train and political enthusiasm?

Fight Fight Fight, controlled by Bill Zanker, one of Trump’s closest associates, owns the $TRUMP memecoin. It is connected to the Trump Organization via CIC Digital LLC, both of which profit off of trading fees. Sure, it’s a great clever structure, but unfortunately that doesn’t just automatically make the coin itself have any intrinsic value.

TMTG’s announcement that it intended to develop a “bitcoin treasury” and create a Truth Social Bitcoin ETF. The goal? To link the value of its stock (and, by extension, Trump’s wealth) to Bitcoin. This isn’t investing, this is financial engineering on a massive scale. That’s the equivalent of saying, “We haven’t figured out a real business model yet, but at least Bitcoin is going up, amirite?

The danger of a speculative bubble is indeed acute. FOMO (Fear Of Missing Out) is a strong feeling, but it’s a horrible way to invest. Don't let the hype cloud your judgment. As always, do your own due diligence, and be willing to question whether these valuations are based on the real substance, or simply the fluff.

Reputational Risk: Can You Stomach It?

Impact investing is not just a way to put your dollars to work — it’s about aligning your capital with your values. So, are you willing to put your good name on a project that will forever be tied to the toxic Trump brand?

The fear of political backlash and bad press is powerful. A single tweet, a new controversial statement from the White House, or a new political scandal would likely send these ventures into a tailspin. The crypto market is characterized by high volatility, which only increases the risk associated with this practice. That’s about as easy as walking a tightrope in the midst of a hurricane.

Oh, and that reputational risk to you, the investor, too. Are you ready to justify your investment decisions to your friends, family and voter constituents? Are you ready to be linked to the media firestorms that always seem to follow the Trump brand?

In the end, pouring taxpayer dollars into these ventures is a roll of the dice. It’s a bet on the Trump name, on the crypto market, and most importantly on the political climate. Where some consider that a chance, I view that as a recipe for certain disaster. Do your research, proceed with caution, and remember: your money is your responsibility.