Source : THE AGE NEWS
By Annie Massa
In tuxedos and floor-length gowns, crypto executives and adherents spilled through the Andrew W. Mellon Auditorium in Washington on Friday (US time), ready to toast the inauguration of Donald Trump – a leader who promises to become the most crypto-friendly US president.
“The reign of terror against crypto is over,” roared David Sacks, the venture capital executive appointed as Trump’s crypto tsar.
Bitcoin has rocketed since Donald Trump’s decisive election victory.Credit: Bloomberg
Just how pro-crypto can a president be? That same evening came the launch of a Trump meme coin – a virtual token that appears to offer direct financial benefit to the president-elect’s family. The token’s market value surged to about $US5.6 billion ($9 billion) by Saturday afternoon – which could mean a windfall of billions of dollars, at least on paper, for Trump-linked entities that own most of it.
“$Trump is currently the hottest digital meme on earth,” Eric Trump wrote on X. “We are just getting started!”
Watchdogs’ rebuke
The token drew immediate rebuke from government watchdogs, who called it the president-elect’s latest breach of ethical norms and a way to profit from his place on the world stage.
Critiques of Trump’s family real estate business — including spending by foreign companies and special interest groups at its properties — trailed him through his first term. More recently he’s pushed Trump-branded non-fungible tokens.
President-elect Donald Trump after a fireworks show at Trump National Golf Club in Virginia at the weekend.Credit: AP
But a meme coin, which is usually unlinked to any underlying business and thus highly speculative for investors and potentially wildly lucrative for founders, pushes the boundaries further, said Danielle Brian, executive director of the nonpartisan Project on Government Oversight.
“Any effort the Trump Organisation was making to demonstrate they were concerned about potential conflicts, specifically where it comes to foreign governments — this seems to entirely undermine,” Brian said.
Other groups that raised concerns include the nonprofit Campaign Legal Centre and Citizens for Responsible Ethics in Washington, which unsuccessfully sued Trump in his first term for violating constitutional prohibitions on foreign gifts and compensation.
“The clear difference with crypto is how quickly you can have a windfall,” said Kedric Payne, general counsel at the Campaign Legal Centre.
Industry euphoria
The meme coin further enmeshes the Trump family in an industry his administration will be responsible for regulating.
Billed as the “only official Trump meme”, the token’s website encourages buyers to “get your piece of history”, and features images of Trump raising his fist in defiance, as he did after narrowly dodging an assassination attempt at a rally in July.
An 80 per cent share of the virtual asset is owned by a Trump Organisation affiliate called CIC Digital LLC, and a related entity called Fight Fight Fight LLC — whose name echoes the words Trump mouthed after a bullet grazed his ear.
Their holdings will be unlocked over a three-year period. According to the site, 200 million of the token immediately became available, a supply that will grow to 1 billion over three years.
Trump and his sons Donald Trump Jr. and Eric Trump have also been promoting a crypto platform called World Liberty Financial, in which they have financial ties.
The crypto industry viewed itself as unfairly persecuted under the Biden administration, and spent heavily to elect Trump. Under chairman Gary Gensler, the Securities and Exchange Commission sued big crypto exchanges Binance, Coinbase and Kraken, arguing they sold assets that should be classified as securities.
In the days leading up to Trump’s inauguration, that gloom was replaced with a feeling of euphoria. Crypto companies spent $10 million on Trump’s inauguration, according to Politico. Gensler is stepping down, and crypto-friendly lawyer Paul Atkins has been nominated to replace him.
And far from being a pariah, Kraken’s name and logo emblazoned the halls of the crypto ball in Washington. “The beginning of innovation in America for crypto has just begun,” Sacks said at the event.
Bloomberg
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