Ethereum price 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 “great time” to buy Ethereum. At the time of his tweet, Ethereum traded for $2,735, having recovered from a massive drop that day that saw its price hit the $2,000 lows.

However, the asset has since struggled, now trading at $1,869. Over the last 24 hours, Ethereum has recorded a slight 2.49% increase, but it remains down 9.24% for the week.

Community Backlash

The sharp decline following Trump’s statement has drawn mixed reactions from the crypto community. One community member argued that he is not a market expert and that price movements depend on fundamentals rather than individual endorsements. 

Another pointed out that the situation shows how markets often react strongly to high-profile statements before stabilizing based on actual demand and utility. Meanwhile, critics have resurfaced Trump’s tweet, accusing him of using his influence irresponsibly.

World Liberty Financial’s Ethereum Holdings

It is important to note that Eric Trump’s Ethereum comments raise questions due to his ties to World Liberty Financial (WLF), a Donald Trump-inspired crypto venture with notable Ethereum holdings. As of the latest data, WLF holds 7.933K ETH, worth approximately $14.84 million at current market prices. 

The consistent addition of Ethereum to their portfolio might assist the bulls during a price uptrend. However, the involvement of WLF in the crypto sector has fueled speculation about potential conflicts of interest, particularly given its governance structure. 

For context, in January, Reuters suggested that Trump’s family took control of WLFI, which had previously raised $550 million by selling WLFI governance tokens. These tokens give holders voting rights over the project’s direction but cannot be traded. 

Most of the token sales occurred after Donald Trump’s election win in November. Despite its high-profile fundraising, WLFI has yet to launch a public platform, leading to growing scrutiny over its long-term plans and operational transparency.