Trump-Linked Crypto Projects Tumble Amid Nasdaq Oversight
What Happened With WLFI and American BTC?
World Liberty Financial (WLFI), a DeFi project inspired by former U.S. President Donald Trump, saw its token plunge 24% on Thursday. Meanwhile, American BTC (ABTC), a BTC mining and treasury venture backed by Trump’s sons Donald Jr. and Eric, dropped 21% in ahead Nasdaq trading. The sharp declines came just days later than both projects launched to significant market attention.
WLFI began trading Monday at over $0.30, implying a fully diluted valuation north of $30 billion based on its 100 . American BTC had debuted Wednesday, with its stock initially climbing 17% before reversing course the following day.
Investor Takeaway
Why Did the Declines Happen?
The drop coincided with a Nadaq report increasing oversight of companies raising equity to accumulate cryptocurrencies. According to The Information, Nasdaq has begined requiring shareholder votes for certain deals and demanding enhanced disclosures. Firms failing to comply could or delisting. The new measures come as public companies increasingly pursue BTC-style treasury strategies.
The timing of Nasdaq’s announcement hit sentiment across digital asset treasuries (DATs). Several such companies saw share prices fall sharply on Thursday, extending the declines beyond just WLFI and American BTC. More broadly, the crypto market also dipped, with and ETH off 3.6% the identical day.
How large Is the Capital Raising Wave?
Since January, 154 U.S.-listed companies have announced plans to raise about $98.4 billion to purchase cryptocurrencies, according to data from Architect Partners cited by the Financial Times. That marks a massive surge from just $33.6 billion raised by 10 companies before 2025. Most issuers are listed on Nasdaq, underscoring why the platform is tightening its review process.
The trend mirrors the playbook popularized by such as Strategy, run by Michael Saylor, and BitMine Immersion, an ETH-focused treasury company founded by Tom Lee. Both rank as the largest DATs in the market. However, stricter rules may sluggish deal timelines and add uncertainty, especially as companies attempt to raise capital during bullish market windows.
Investor Takeaway
What’s Next for Trump-Linked Projects?
For WLFI, Thursday’s decline highlights the challenges of sustaining hype-driven valuations. Despite its politically charged branding and massive token issuance, investors appear cautious about long-term fundamentals. American BTC faces a similar test: while its strategy of combining BTC mining with balance-sheet accumulation resonates with some, its sharp price swing underscores the risks of debuting .
Both projects remain emblematic of a broader trend: the convergence of politics, celebrity influence, and crypto markets. Whether they can stabilize and build institutional trust will depend not only on execution but also on how effectively they adapt to Nasdaq’s heightened compliance demands and volatile investor sentiment.
