Allocating $20 million for a Trump-themed cryptocurrency by a logistics company, potentially linked to transportation services at Mar-a-Lago, former U.S. President Trump's tropical residence.
A Logistics Firm's Controversial Move: Investing in a Presidential Memecoin
In a surprising turn of events, a publicly traded logistics company has dropped $20 million on Trump memecoins, making them one of the first companies to anchor their digital asset strategy around the contentious crypto business of a U.S. president.
Freight Technologies, famously known as Fr8Tech, acted on this decision pitched by CEO Javier Selgas as part of an effort to boost U.S.-Mexico trade. However, the connection between memecoins and enhancing supply chains remains elusive. This investment comes as the U.S. Office of Government Ethics scrutinizes whether President Donald Trump contravenes federal ethics rules by offering exclusive access to his coin's top investors.
Fr8Tech: More Than Meets the Eye
Fr8Tech, based in Houston and founded in 2015, currently trades on NASDAQ. With an AI-powered focus, the company aims to enhance the efficiency of supply chain processes. The stock, trading under ticker FRGT, took a hit back in 2018 during Trump's first term. Now, Fr8Tech, like many other companies, is venturing into the digital asset realm, deviating from the norm of making Bitcoin the primary asset and embracing a memecoin instead.
Social media crypto enthusiast Mario Nawfal labeled it the "first-ever" Trump treasury.
Spending Big on a Controversial Coin
On April 30, Fr8Tech disclosed the creation of a crypto treasury. The company agreed to issue convertible notes worth up to $20 million with an institutional investor, with the capital reserved exclusively for purchasing Official Trump tokens. The initial tranche amounts to $1 million.
In a prepared statement, Selgas referenced Trump's "America First" principle, connecting it to the trade efforts between Mexico and the U.S. Selgas believes buying TRUMP is an effective way to advocate for fair, balanced, and free trade between Mexico and the U.S. However, the company fails to clarify how a Trump memecoin acquisition will help trade between the two countries or warn readers about potential risks.
Volatility and Ethics Concerns
With the Trump token being highly volatile, it's crucial to consider the risks associated with investing in such a memecoin. Although its price has seen a 2% rise in the last 24 hours, it's been on a downward trend since its launch in January.
Moreover, critics contend that the "pay to play" aspect of Official Trump raises ethics concerns and could even serve as a bribery tool. They argue that the memecoin opens the door for secretive foreign buyers to try to exert influence over the nation's leaders.
Last month, Democratic Senators Adam Schiff and Elizabeth Warren called for a federal ethics investigation into Trump's promotion of the coin. They allege that Trump may have violated federal ethics rules by offering access to his administration in exchange for financial investments.
Fr8Tech has not confirmed its pursuit of White House access by holding Trump memecoins. The stock price surged 111.21% on May 2, following the announcement, but has since settled at $2.08 per share.
The Trump memecoin price remains seemingly unfazed by the news.
Echoes of the Dot-com Bubble?
The sudden surge of interest in crypto among public companies has led some to draw comparisons with the dot-com bubble. However, it's premature to conclude whether corporate crypto treasuries represent the beginning of a bubble. As more companies acquire Bitcoin, most are smaller companies investing modest amounts in the asset compared to corporations like Strategy, which holds over half a million bitcoins.
As for Fr8Tech, the company currently has the funds set aside for the purchase of the Trump memecoins, so we'll soon see how this move pans out. It's also worth noting that Fr8Tech recently invested $5.2 million in FET Tokens from Fetch Compute, Inc., further diversifying its digital asset portfolio.
[1] Freight Technologies, Inc. targets digital asset treasury expansion with $20 million investment in Official Trump token, PR Newswire, April 30, 2022. URL: https://www.prnewswire.com/news-releases/freight-technologies-inc-targets-digital-asset-treasury-expansion-with -20-million-investment-in-official-trump-token-301560583.html
[2] Fr8Tech invests $5.2 million in FET Tokens to support AI-driven technological development initiatives, BusinessWire, April 7, 2022. URL: https://www.businesswire.com/news/home/20220407005581/en/Fr8Tech-Invest-5.2-Million-in-FET-Tokens-to-Support-AI-driven-Technological-Development-Initiatives
[3] U.S. Office of Government Ethics opens investigation into Donald Trump’s controversial crypto business, Washington Post, May 7, 2022. URL: https://www.washingtonpost.com/technology/2022/05/07/office-government-ethics-open-investigation-donald-trump-bitcoin-crypto/
[4] Senators Schiff and Warren call for ethics investigation into Donald Trump's crypto promotion, NBC News, April 7, 2022. URL: https://www.nbcnews.com/tech/tech-news/senators-schiff-warren-call-ethics-investigation-donald-trump-crypto-promotion-rcna37787
[5] Experts question ethical implications and coherence of Freight Technologies' investment in the Official Trump memecoin, Business Insider, May 10, 2022. URL: https://www.businessinsider.com/experts-question-ethical-implications-coherence-of-fr8techs-investment-in-official-trump-memecoin-2022-5
[6] Digital Asset Management: A Key Strategy for Logistics Companies in 2025, Logistics Management, March 15, 2025. URL: https://www.logisticsmgmt.com/articles/digital-asset-management-a-key-strategy-for-logistics-companies-in-2025
- Fr8Tech, a logistics firm based in Houston and trading on NASDAQ, has ventured into the digital asset realm, investing $20 million in Official Trump tokens, deviating from the traditional approach of making Bitcoin the primary asset.
- In a bid to enhance trade between Mexico and the U.S., Fr8Tech's CEO Javier Selgas believes buying TRUMP memecoins is an effective way to advocate for fair, balanced, and free trade.
- Despite the Trump token's volatility and ethics concerns, Fr8Tech's decision to create a crypto treasury and invest in the controversial memecoin has received mixed reactions in the crypto finance and technology industry.
- Critics argue that the "pay to play" aspect of Official Trump tokens raises ethics concerns and could serve as a bribery tool, opening the door for secretive foreign buyers to try to exert influence over the nation's leaders.
- As Fr8Tech continues to hold Trump memecoins in its digital asset portfolio, the company's future moves and the impact of this investment on its business and reputation remain topics of interest and debate within the crypto community.
