White House UFC Event Sparks Concerns Over Thinly Traded Crypto Tokens

The White House's UFC event tied to Donald Trump's 80th birthday is under scrutiny for using thinly traded crypto tokens as prize money. The $1 million award will be paid in Crypto.com's CRO token, which has been at the center of Trump-linked digital asset ventures.

Crypto.com has a strategic partnership with Trump Media and plans to distribute the $1 million bonus in the equivalent value of CRO. This is not the first time Trump Media has invested in CRO, as it holds 756 million tokens acquired for $114 million, worth around $46.9 million at the current price.

The prize structure raises concerns about winners' ability to convert the $1 million UFC prize without affecting the market price of CRO. With a spot daily trading volume of around $4 million and a 82% decline in value over the past 10 months, experts worry that selling pressure could push CRO lower.

The event also includes $250,000 in stablecoins issued by World Liberty Financial, another Trump family crypto venture, which should be easier for winners to redeem. The intersection of Trump-associated media, politics, and crypto projects carries reputational and market risks.