Ethereum worth has declined 40% since Eric Trump, son of U.S. President Donald Trump, promoted the crypto on social media.
On February 4, he posted to his 5.7 million followers that it was a “nice time” to purchase Ethereum. On the time of his tweet, Ethereum traded for $2,735, having recovered from an enormous drop that day that noticed its worth hit the $2,000 lows.
For my part, it’s a good time so as to add $ETH.
— Eric Trump (@EricTrump) February 3, 2025
Nevertheless, the asset has since struggled, now buying and selling at $1,869. Over the past 24 hours, Ethereum has recorded a slight 2.49% improve, but it surely stays down 9.24% for the week.
Neighborhood Backlash
The sharp decline following Trump’s assertion has drawn blended reactions from the crypto group. One group member argued that he’s not a market professional and that worth actions rely on fundamentals quite than particular person endorsements.
One other identified that the state of affairs exhibits how markets usually react strongly to high-profile statements earlier than stabilizing primarily based on precise demand and utility. In the meantime, critics have resurfaced Trump’s tweet, accusing him of utilizing his affect irresponsibly.
World Liberty Monetary’s Ethereum Holdings
It is very important word that Eric Trump’s Ethereum feedback increase questions as a result of his ties to World Liberty Monetary (WLF), a Donald Trump-inspired crypto enterprise with notable Ethereum holdings. As of the most recent knowledge, WLF holds 7.933K ETH, value roughly $14.84 million at present market costs.
The constant addition of Ethereum to their portfolio would possibly help the bulls throughout a worth uptrend. Nevertheless, the involvement of WLF within the crypto sector has fueled hypothesis about potential conflicts of curiosity, significantly given its governance construction.
For context, in January, Reuters instructed that Trump’s household took management of WLFI, which had beforehand raised $550 million by promoting WLFI governance tokens. These tokens give holders voting rights over the challenge’s route however can’t be traded.
Most of the token gross sales occurred after Donald Trump’s election win in November. Regardless of its high-profile fundraising, WLFI has but to launch a public platform, resulting in rising scrutiny over its long-term plans and operational transparency.
