Freight Technologies secures a $20 million investment to purchase Official Trump memecoins, potentially reshaping its digital asset strategy amidst ongoing scrutiny of President Trump’s ethics. CEO Javier Selgas promotes the initiative as a means to enhance US-Mexico trade relations, but many question the viability and purpose of memecoins in logistics. Critics warn of ethical concerns surrounding ‘pay-to-play’ practices, as investigations into Trump’s promotion of the coin are initiated by Senate Democrats.
A Houston-based logistics company, Freight Technologies, has made headlines with a bold $20 million commitment to purchase Official Trump memecoins, a move that has raised more than a few eyebrows in the business world. This investment involves an agreement with an institutional investor and positions Fr8Tech as a pioneering player in aligning its digital asset approach with the former U.S. president’s controversial cryptocurrency.
Company CEO Javier Selgas is pushing this strategy as a means to bolster trade between the U.S. and Mexico—though the precise connection between a memecoin and logistics operations is still somewhat vague. Amidst this, the U.S. Office of Government Ethics is looking into whether President Trump has breached any federal ethics regulations by offering preferential treatment to top investors in his memecoin venture.
Freight Technologies, short for Fr8Tech, was launched in 2015 and subsequently registered on NASDAQ. The firm aims to leverage cutting-edge technologies like AI to enhance supply chain efficiencies. Once upon a time, Fr8Tech’s stock was on a downward spiral, particularly around 2018 during Trump’s first term, but the company is now shifting gears by focusing on digital assets beyond the typical Bitcoin route, which is an interesting twist on the traditional investment strategy.
Earlier this month, Fr8Tech announced the establishment of its crypto treasury. The firm opted for convertible notes to raise up to $20 million specifically for acquiring Trump tokens, with the first set amounting to $1 million. Selgas added a political spin to this initiative, invoking Trump’s “America First” approach with ties to trade relations between the U.S. and Mexico. In his statements, he emphasised that productive commerce would benefit both nations, but the company didn’t clarify how this memecoin acquisition would contribute to that aim.
There are many layers to unpack here, especially considering the frictional dynamics of memecoins. Official Trump, like many others, is incredibly volatile; since its launch in January, it’s generally been on the decline, even though it saw a modest uptick recently. Critics are cautious, pointing out that the model could encourage unethical behaviour, particularly the “pay-to-play” scheme that seems to be part of Trump’s token offerings—raising red flags regarding potential influence peddling.
Moreover, notable critics, including Senators Adam Schiff and Elizabeth Warren, are pushing for a federal investigation into Trump’s promotion of the coin due to concerns about possible violations of ethics rules. They argue that by offering exclusive access tied to investments, Trump might be navigating a thin ethical line. Freight Technologies has denied any intent to gain direct access to the White House via its memecoin investment.
In the days following the announcement, Fr8Tech’s stock experienced a dramatic surge, climbing 111.21% to close at $2.08 per share, underscoring the mixed bag of market reactions to the news. Interestingly, the price of the Trump memecoin itself seemed largely unaffected by this spike, raising further questions about the sustainability of such investments.
Some analysts are drawing parallels between the current interest in corporate crypto treasuries and the infamous dot-com bubble, citing concerns of a potential crash ahead. While there has been some measured accumulation of Bitcoin by public companies over the last few years, it’s typically smaller firms making modest investments. Every action counts, however, especially as Fr8Tech looks beyond Trump tokens, having already invested $5.2 million in Fetch Compute, showing a multi-faceted approach to its future.
