Trump’s Crypto Venture divided the industry that he has to support

Ball gowns, tuxedos and dresses “Make Bitcoin Great again” Basball Caps, a crowd of some of the country’s most powerful cryptocurrency officers collected some blocks from the White House for a grand party three days before the inauguration of President Trump, toasing a upcoming administration that to promote the interests of the industry I swear.

Even Snowup Dog joined the festival, offering one Rendering “Don’t believe.”

But the guards were caught by the Crypto millionaires and billionaires ahead.

On January 17 at 9 pm, with full enthusiasm, Mr. Trump Announced On social media that he was launching a new cryptocurrency-a so-called memecoin known only as $ trump.

Amazing disclosure raised fresh morality and legal concerns about methods in which Mr. Trump has continued his power and fame, in this case a naturally unstable and speculative market for his millions of followers in this case By marketing.

And it stopped a wave of criticism from inside the industry that he says he wanted to champion.

Crypto officials criticized the move as a cash grab, saying that Mr. Trump reduced the credibility of the industry at the same time when the proponent looking for a more prominent place for digital currencies in the mainstream finance and business Was doing.

His enterprise, he said, created a brief and highly propagated bubble, which was partially impure within a few days, even Mr. Trump’s family and its business partners from the fees on the purchase and the sale of the coin. Gathered.

Nick Carter, a vocal supporter of Mr. Trump, said, “It all looks corrupt and self-desired, which runs the Crypto Investment firm Castle Island Ventures and was in the Crypto ball, as the new $ Trump coin was announced.

One Analysis Crypto Forensic Company has shown by Channelis that most of the people who bought $ Trump were possibly inexperienced retail investors, possibly dubbing in Crypto for the first time. These traders “broadly broke,” analysis said, although more than 100,000 of them lost money.

Nevertheless, according to an estimate, $ Trump launches You generated Fees of $ 58 million for the Trump family in less than a day. By Friday night, the family also owns, at least on paper, the price of Trump at a price of $ 23 billion at a price of $ 23 billion – already dropped by 60 percent from the peak. This price would crash even further if the family pulled a so -called rug and went fast to sell its holdings.

When asked about the launch of the coin at the White House on Tuesday, Mr. Trump said, “I do not know much about it.”

But even after the inauguration, he continued the announcement of the celebration of the $ Trump tokens again – effectively urged more people to urge to buy the coin after its price collapsed.

Ryan Sailcis, a Crypto entrepreneur who was one of the initial supporters of the President in the industry, said on social media that Memcoin episode Will cost Trump administration “lots of $ and goodwill.”

“Trump needs to set his crypto advisors on fire, from top to bottom and with those who know what they are doing,” another crypto executive, Gabor Gurback, Xe The coin fell after the price.

The Memcoin launch was the first time the Trump family released a digital currency that any investor could buy or sell on crypto exchanges. But an executive officer of the Trump organization said, “A serial entrepreneur and friend of Mr. Trump got out of an earlier effort organized by Bill Zanker, who first sold back, gym equipment and self-help courses.”

Mr. Zanker and Trump family began selling $ 99 digital trading cards in 2022, in which Mr. Trump was shown as a superhero in a crypto-based format, known as a non-token, or NFT .

But NFTs, at least in theory, serve as digital artwork or collectible, while Trump tokens were treated more like gamestop shares by buyers, so -called meme stocks that many amateur traders have by many amateur traders in recent years Bought in the hope of earning quick profit.

An ontime Crypto Skptic, Mr. Trump, embraced the industry on the campaign mark last year, promising to abolish the regulator perfect of the Biden administration on Crypto firms.

“We are going to earn a lot of money for the country,” Mr. Trump said on Thursday that he signed an executive order at the White House to promote the Crypto industry.

It is a business with a sufficient personal share of Mr. Trump. In September, he and his sons helped start the World Liberty Financial, a company designed to facilitate borrowing and lending in digital currencies.

And since his election victory, Mr. Trump has created a series of personnel selection in regulatory agencies that are ready to help the industry.

In an interview on Friday, the middle son, Eric Trump, dismissed the criticism of the decision to issue a $ Trump token and questioned whether it was a conflict of interest for the Trump family that he was a digital currency Introducing, while President Trump is the appointment of financial regulations.

“$ Trump Trading Card and World Liberty Financial Crypto are two of the most successful projects in history,” he said.

Crypto Ball was promoted as a celebration of the political success of the industry-Crypto’s enthusiasts usually like a party thrown on boats and beaches, just transplanted in a auditorium on a 15-minute walk from the White House. goes.

It was also an opportunity for the top crypto authorities of the network with some most influential figures in Washington. Fred Thiel, Chief Executive Officer of Bitcoin Mining firm Mara Holdings, interacted with House Speaker Mike Johnson, who sent a lesson to President Trump to him. “Everyone was pumped a lot,” Mr. Theal said in an interview.

But it was discovered that the most important action was being taken on social media in the Crypto market. “Trump Mem is here!” Mr. Trump wrote on Truth Social and X as Snup Dog took the stage. “All this is the time to celebrate that we are standing for: win!”

Supporters of digital currencies say they may develop in widely used means of exchange, allowing immediate transfer of funds to be moved and privately transferred outside the traditional banking system. Memcoins, a type of digital posture based on a joke or a celebrity mascot, Crypto is controversial in the world. They have no practical utility and are often deployed in pump-end-dump plans or other scams.

But traders with good instincts can produce quick benefits – if they buy quickly because the price is increasing and then first sells their holdings before cashing the buyers.

Josh Bailey, a crypto businessman in Austin, Texas, saw the announcement of Mr. Trump soon after being posted. First, they did not believe that it was real. “The United States president launching a Memcoin,” said Mr. Bailey. “I was not expecting that.”

Soon the price of the coin was increasing. Within a few hours, all $ Trump in circulation was more than $ 5 billion. Mr. Bailey decided to put in $ 12,000. By the time he drove away, his troww had done more than quintupal in value.

Until Sunday morning, Mr. Trump’s coin was one of the most valuable cryptocurrency in the world, and his partnership had over $ 50 billion on holding paper. A professional unit controlled by the Trump organization and its partners had 80 percent coins and was collected as a business of coins.

Eric Trump said as new investment in social media posts “The hottest digital meme on earth.”

Already, however, Crypto supporters of Mr. Trump were disappointed. Many people participating in the Crypto Ball were effectively out of the money opportunity, unable to buy the coins adequately for profit as they were partying instead of online.

“I am valid about it,” said Mr. Carter. “Why wouldn’t they make an announcement on just speakers?”

Then, on Sunday afternoon, a post appeared Melania Trump’s X Account: She was launching a memecoin of herself, essentially creating a competitor in the market. The next day the price of $ Trump increased to 60 percent.

Suddenly, the enthusiasm of the industry for Mr. Trump became angry.

Justin Bons, a Crypto Executive, Said Back-to-back Memcoin announcements “There was nothing more than a grip of blurred money.” Another businessman Said In the context of the chairman of the former Securities and Exchange Commission, he was “remembering the Gary Gensor right now”, who filed several cases against the Crypto companies.

The new Trump tokens also quickly raised legal questions, focused on whether it forms a security and should have been subject to federal disclosure and registration requirements.

$ Melania tokens are “digital collectable,” The family said that this Announced the offer, “not intended to be, or an investment is a matter of opportunity.” But the trading pattern shows how the buyers treated these tokens – to buy and sell them in most cases in an attempt to earn money.

During the Biden administration, the SEC under Sri Genslar adopted an aggressive currency towards cryptocurrency, arguing that most of them were securities that should be closely regulated.

In 2023, SEC Accused a cartoon NFT series backers Stoner cats were marketed in such a way that “investors led to the appropriate managerial and entrepreneurial efforts to expect benefits from” Backers “to sell an unregistered security after images.

Former SEC Commissioner Elison Heron Lee said that during his tenure, the new Trump-family coins would definitely have generated an employee review to evaluate on compliance with the law.

“This analysis is not on whether the promoters call it security,” he said. “This pays attention to whether it has been marketed as an investment, which means that buyers will usually get returns based on the efforts of others.”

Democrats are already in Congress including Massachusetts Senator Elizabeth Warren written A letter to the federal regulators is asking them to investigate the matter.

But now opening such an investigation will require the SEC to investigate the family of a president, who only nominated the president of the agency – a close relationship with the Crypto industry with an experienced securities lawyer.

David Sachs, an enterprise capitalist, appointed by Trump to oversee his administration’s technical policy, stated this week that the coin was “like a baseball card or stamp” and “completely fine”.

It is already clear that some buyers of $ trump tokens jumped very slowly and lost the money. During a series of trades, an investor using pseudo -name ANsem spent $ 9 million in cryptocurrency to buy $ trump just before falling into the price, and then Sold holdings Two hours later at a loss of approximately $ 2 million, according to public transactions records, the first time was identified by an account called Luconchen.

Nevertheless, in the next few days, the ANSEM account continued the business of $ Trump, showing records, perhaps in the hope of harming.