The First Family’s chaotic cryptocurrency ventures feel like ICOs and NFTs all over again.
The cryptocurrency industry is abuzz with outrage over Donald Trump's recent multi-billion-dollar Trump-branded meme coin sale. The move has drawn criticism from several prominent figures in the virtual-currency world, who accuse Trump of engaging in a cash-grab scheme that is reminiscent of the initial coin offering (ICO) and non-fungible token (NFT) booms.
Ari Paul, the founder and chief investment officer of BlockTower Capital, slammed Trump's coin sale in a tweet on Monday, calling it "fleecing people for billions." Anthony Scaramucci, the former White House communications director, also weighed in on the matter, describing Trump's actions as "corruption at the dictator level."
"This is not capitalism. This is not free markets. This is not the American way. Everyone involved should be ashamed of themselves," Scaramucci wrote in a post on his Telegram channel.
Balaji Srinavasan, a former Coinbase executive and venture capitalist, likened Trump's meme coin to a "lottery" that does not contribute to wealth creation.
"The Trump meme coin is a lottery, not a new form of capital. It's designed to enrich early participants at the expense of latecomers, not to build anything new," Srinavasan wrote in a tweet on Monday.
The outrage stems from the fact that Trump, who was convicted of fraud in the 1990s, is essentially minting billions of dollars out of thin air with no clear legal standing. The move is also seen as a betrayal of the crypto ethos, which emphasizes decentralization and transparency.
"An eleventh-hour announcement before being sworn in as the world's most powerful person: Donald J. Trump to sell 20% of a token with no intrinsic value to get rich quick. He minted billions out of thin air and left the remaining 80% sat on by insiders. Melania's token launch coincided with a slide in her husband's coin. Stomach-churning price swings no longer scare us. But the conflict of interest and cynicism should," reads a commentary piece published by the Financial Times on Monday.
The commentary piece also raises concerns about the potential for foreign powers to tap into this grift to reduce the risk of tariffs.
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