The inauguration weekend of Trump's crypto-crazed family boosted their wealth to billions of dollars.

• Over the weekend, the Trump family's meme coins were launched, revealing the incoming president's plan to capitalize on relaxed regulations.
• Prior to the inauguration, top industry leaders mingled with members of the administration at the Crypto Ball.
• David Sacks, the new White House AI and crypto czar, announced to the crowd that the era of fear against cryptocurrency has ended.

President Donald J. Trump is the first to seize the opportunity presented by the new administration in Washington, D.C.

On Friday night, political elites and members of Trump's inner circle mingled with crypto A-listers at the Crypto Ball, held at the luxurious Mellon Auditorium, located near the White House.

The night of the party, Trump launched a meme coin called $TRUMP on the Solana platform. Its market cap surpassed $14 billion over the weekend. Despite not having an underlying product, $TRUMP became a popular meme coin among Trump's followers. The president celebrated the launch on social media, encouraging his followers to "WINNING!"

The Trump Organization and affiliates hold 80% of the coins, according to the website for $TRUMP.

Some of the leaders of platforms that enable ordinary investors to invest in Trump's latest project were included in the Crypto Ball, such as CEO Brian Armstrong and Kraken co-founder Jesse Powell.

Trump wasn't done after one token.

On Sunday, the $MELANIA coin was introduced, named after the first lady. The coin's value surpassed $2 billion, representing a more than 40% increase. However, both the Trump and Melania coins have since dropped significantly from their initial highs.

World Liberty Financial, a decentralized finance project backed by the Trump family, experienced a significant increase in its token price from 1.5 cents to 5 cents and released an additional 5 billion tokens for sale. The project, which was launched in September, has already raised over $300 million in total sales, as reported by blockchain firm Arkham Intelligence.

According to the project's founding document, the Trump family receives 75% of World Liberty's crypto coin revenue. On-chain data indicates millions of dollars worth of token transfers to Coinbase's institutional custody provider.

World Liberty stated that they regularly manage their crypto holdings for treasury management, fee and expense payments, and to meet working capital needs.

Earlier Monday, CNBC attempted to contact Donald and Melania Trump but did not receive a reply.

'Reign of terror'

The Trump family's net worth increased by billions of dollars in 48 hours due to their investments in cryptocurrencies, highlighting the lack of regulation in the industry and the president's ability to leverage his influence and partnerships to benefit himself, his family, and his allies rapidly.

The price of Bitcoin surged to an all-time high hours before the inauguration, reaching nearly $110,000, as crypto industry leaders and investors expressed broader market enthusiasm and emerged as some of Trump's biggest supporters in the campaign. In July, Trump delivered the keynote at the Bitcoin Conference in Nashville, Tennessee.

David Sacks, a prominent Silicon Valley investor and the new White House AI and crypto czar, announced the end of the reign of terror against crypto in a packed D.C. ballroom on Friday night. His comments were met with applause that reverberated beneath the Mellon Auditorium's soaring columns.

Trump, who was previously criticized by Sacks for the events of Jan. 6, 2021, received support from the former critic last year. Sacks hosted a high-profile fundraiser for Trump at his San Francisco mansion in June and frequently promoted him on the popular "All-In" podcast.

On Friday, Sacks stated that the start of innovation in America for crypto has commenced.

The new $TRUMP coin sparked conversations on X, formerly Twitter, with skepticism expressed by those in and around the industry.

"Gabor Gurbacs, founder of digital asset firm Pointsville, advised Trump to fire his crypto advisors and replace them with knowledgeable individuals in a post on X. According to Gurbacs, the memecoins have damaged the US, presidency, and Trump family's credibility, and the consequences have not yet begun."

Mark Cuban, a billionaire former tech entrepreneur and part owner of the Dallas Mavericks, expressed his concern about the apparent lawlessness of the crypto industry. Cuban, who has been an independent for a long time and has become a vocal supporter of Democratic nominee Kamala Harris, believes that the coins are particularly harmful to the crypto industry's efforts to prove its legitimacy.

"Everyone and anyone who has no clue about crypto is targeted by scams," he wrote.

At the pre-inauguration party, the focus was on the broader implications of Trump's policies, rather than his new coin.

""Crypto was considered dead two years ago, but now we're thriving," said an anonymous attendee."

Trump's inaugural fund received substantial contributions from crypto firms, with Ripple donating $5 million in digital tokens and Coinbase, Kraken, and Circle each giving $1 million. Online brokerage also contributed $2 million.

Both Coinbase and Kraken have been fighting the SEC in court, while Robinhood received a Wells Notice in May regarding its U.S. crypto business, which is typically the last step before formal charges are issued. Ripple has been engaged in a years-long legal battle with the SEC and its outgoing Chairman Gary Gensler.

"Ripple Chief Legal Officer Stuart Alderoty, who attended the Friday night festivities, posed the question: "What do we do with this momentum? How do we take it forward to create the promise of making the U.S. the crypto capital of the world?""

Alderoty wants to see a coalition formed to discuss unified policy priorities.

Congress will ultimately decide on the policy, and we cannot dictate to Congress what the policy should be, according to Alderoty. However, it would be beneficial if there could be some alignment on the priorities beforehand, especially with the current crypto-friendly Congress, as the industry has fragmented in the past when proposals have been presented.

Inside the Crypto Ball

The party received a substantial amount of support from Republican lawmakers, including House Speaker Mike Johnson, Senators Marsha Blackburn, Ted Cruz, and Cynthia Lummis, as well as former House members French Hill and Patrick McHenry.

Zach Bradford, CEO, discussed bitcoin mining with Howard Lutnick, Trump's Secretary of Commerce pick, during a private roundtable meeting.

Bradford discussed bitcoin mining and its potential as a focal point for commerce with CNBC.

Lutnick was informed by Bradford about the potential of bitcoin mining to greatly influence the economy, according to Bradford.

""From a net production perspective, it generates positive revenue, while also contributing substantial tax revenues to the states where we operate," Bradford stated."

Lutnick is "excited about it," as described by Bradford as "somebody that gets bitcoin."

As the next Treasury secretary, Scott Bessent captured photos with attendees on the main floor of the ballroom.

Koh Harada, COO of Aleo, a privacy-focused blockchain, stated that Bessent was "evasive about certain matters, but his presence was intriguing nonetheless."

While many competitors chose to launch from offshore jurisdictions like the Cayman Islands to avoid regulations, Aleo, which has secured over $200 million in funding from investors including SoftBank and Andreessen Horowitz, decided to establish in the U.S.

Harada stated that the company did not establish its presence in the U.S. without careful consideration. After consulting with legal and compliance experts, he concluded that "America is the ideal environment for tech growth."

Harada stated that Aleo, a privacy-focused startup with smart contract capabilities, has become a popular choice among other startups looking to relocate to the U.S. The company selected Wyoming, a state known for its crypto-friendly policies.

"Wyoming was the most welcoming state for crypto, according to Harada. They have implemented forward-thinking policies and established blockchain research centers at the University of Wyoming."

On Friday, founder Michael Saylor, wearing his signature orange bow tie, was present, along with Ripple CEO Brad Garlinghouse and top executives from Coinbase, including global policy head Faryar Shirzad, who were among the attendees.

The Winklevoss twins conversed with Chris Dixon of Andreessen Horowitz and Sriram Krishnan, who recently departed his position as a general partner at the firm to join Sacks' task force, as well as Bo Hines, Trump's nominee for the Presidential Council of Advisers for Digital Assets. Hines will report directly to Sacks.

While Snoop Dogg entertained the crowd in the main ballroom, Katie Haun and Mike Novogratz were deep in conversation. Rick Ross and Soulja Boy, who was charged by the SEC in 2023 for promoting a crypto token without disclosure, kept the larger crowd engaged.

Wristbands were given to guests based on their status. Black bands allowed general admission, while gold wristbands granted access to the VIP balcony. White bands provided the most exclusive perks. General admission cost $2,500, and some sponsors paid $1 million for access to the greenroom on the ground floor behind the stage in the main ballroom.

Donald Trump Jr. wore custom MAGA buttons on his shirt and quickly entered the VIP section's innermost chamber, which was guarded by a rotating bouncer and only allowed certain guests. He was seen conversing with Fred Thiel, CEO of a mining company, along with Sacks and Speaker Johnson.

Thiel discussed with Johnson a blockchain initiative his company had launched earlier that day, which aimed to showcase the convergence of crypto and politics.

Thiel stated that a block on the blockchain was created with a portrait of President Trump, made entirely from transactions.

The Bitcoin blockchain now contains a digital tribute to President Trump, thanks to the Trump47 block that embedded his headshot.

Thiel stated that the release of the viral content occurred on Friday morning and Johnson was so impressed that he sent Trump a photo of it.

A former California prosecutor who helped turn Trump pro-bitcoin was present at the event.

"Our event represents our identity in the world," Hoyos-López said to CNBC during Snoop Dogg's live performance. "Don't interfere with crypto."

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