On July 13th, at 6:11 PM Eastern Time, the popular figure in the presidential election, former US President Trump, was attacked at a campaign rally in Pennsylvania. With the sound of several gunshots, the call for Trump’s victory in the election reached an unprecedented height.
As the suspense of the US election gradually became clear, this assassination incident also became a catalyst for market trends. Cryptocurrencies immediately rebounded, quickly breaking through $60,000 and briefly surging to $65,000.
Two days after the assassination attempt, Trump announced on his social media platform, Truth Social, that he had chosen Republican Ohio Senator JD Vance as his vice presidential candidate. Vance has long been a supporter of cryptocurrency and has publicly disclosed ownership of over $200,000 in cryptocurrency assets. He appreciates the freedom provided by cryptocurrencies through their anti-censorship properties. The nomination of Vance undoubtedly enhances Trump’s camp’s belief in cryptocurrencies.
During his previous tenure as president, Trump appointed several officials who were friendly towards cryptocurrencies, which may be one of the reasons for the collective rise in cryptocurrency assets when Trump’s election prospects were good.
Several cryptocurrency-friendly individuals previously served in the Trump administration. JD Vance, the vice presidential candidate for Trump’s 2014 election, is a supporter of cryptocurrencies. In addition to owning cryptocurrency assets, he has publicly criticized the excessive regulation of cryptocurrencies by the US SEC. Vance has voted in the Senate to abolish the SAB-121 accounting standard, which is highly controversial in the cryptocurrency industry, and plans to propose a more crypto-friendly regulatory bill.
During his previous tenure as president, Trump appointed several cryptocurrency-friendly individuals to key positions.
On July 21, 2017, Anthony Scaramucci, the founder of Skybridge Capital, was appointed as Trump’s White House Communications Director. Skybridge Capital is a hedge fund company that manages $3.5 billion in assets, nearly half of which are related to cryptocurrency. Its founder, Anthony Scaramucci, is also a staunch supporter and advocate of Bitcoin.
On December 15, 2018, Trump appointed Bitcoin supporter Mick Mulvaney as the White House Chief of Staff. Mick Mulvaney is a supporter and advocate of cryptocurrencies. When he worked in the House of Representatives, he was one of the people dedicated to creating the Blockchain Caucus (a legislator who writes and formulates new laws for emerging technologies such as cryptocurrencies) and helped draft two new legislative resolutions supporting the development and evolution of the blockchain industry: House Resolution 1108 and House Resolution 7002.
In April 2020, Trump appointed billionaire and cryptocurrency supporter Mark Cuban as his advisor. Mark Cuban is known for his bold advocacy of cryptocurrency investments and has been called the Bitcoin tycoon for his comparison of the explosive growth of cryptocurrencies to the booming Internet of the 1990s, emphasizing the potential for huge returns.
On June 4, 2020, Trump nominated Hester Peirce, a commissioner of the US Securities and Exchange Commission (SEC), for a second term. She has earned the nickname “Crypto Mom” for her support of digital assets (and criticism of excessive regulation of cryptocurrencies).
The Trump family also likes to issue cryptocurrency assets. Former First Lady Melania Trump was the first in the Trump family to actively embrace cryptocurrencies. At the end of 2021, Melania launched her first NFT collection, “Heads of State,” on her website, priced at 1 Sol, which was approximately $185 at the time, and released on Solana.
When asked about Melania’s NFTs in an interview with Fox, Trump said, “She will do well, she has a rich imagination.”
After leaving the White House, Trump has been good at using his name to profit from his brand, and the easily influenced cryptocurrency market has become the best stage for him.
Following his wife’s example, Trump began to embrace NFTs. In December 2022, he announced the release of a limited edition Trump digital trading card NFT on Truth Social. The NFT was minted on Polygon and sold for $99. After its release, all the NFTs were sold out. According to OpenSea data, a total of 45,000 NFTs generated trading volume of over 648 ETH, equivalent to approximately $785,000. The floor price of the NFT briefly reached 0.84 ETH.
Since then, the Trump NFT series has been unstoppable, with the release of the “Win Trump Prizes,” the second series of “Trump Digital Trading Cards,” and the Mugshot Edition. These NFTs empower holders with rights such as having dinner with Trump, video calls, and playing golf. According to relevant documents, Trump earned $2.8 million through NFT sales.
In the face of Generation Z’s leadership in American society, the cryptocurrency community has become an important influential force.
According to Coinbase data, by 2023, 52 million Americans will own cryptocurrencies, accounting for 20% of the adult population in the United States. In this trend, in order to maximize political goals and business interests, as well as to win votes, Trump has become a “sudden supporter of cryptocurrencies.”
In his campaign speeches, Trump stated that if he becomes the US president again, he will never allow the creation of a central bank digital currency (CBDC). He believes that this would give the government absolute control over funds. On May 9th, he officially accepted cryptocurrency donations for his presidential campaign. This move has garnered him a lot of support and has strengthened his position in the election.
Pardoning Cryptocurrency Advocates
Before leaving office in 2021, Trump pardoned Ripple board member Ken Kurson. According to The New York Times, Trump had previously met with supporters on a private plane provided by a scrap metal recycling giant and cryptocurrency miner in late 2021.
To attract many young American voters, Trump promised in May of this year that if he ultimately wins, he will pardon Silk Road founder Ross Ulbricht and emphasized support for the right to self-custody. This undoubtedly gained widespread consensus within the cryptocurrency community, as Ross is seen as a martyr by many cryptocurrency enthusiasts and libertarians.
In addition, Trump’s recent public statements on the cryptocurrency field have won support from the US cryptocurrency industry. Jesse Powell, the co-founder of Kraken, announced that he donated $1 million in ETH to Trump as an individual. After Trump was attacked, Bitcoin Magazine CEO David Bailey publicly announced plans to raise $15 million for former President Trump’s re-election campaign later this month.
Furthermore, “Dogecoin’s father” Elon Musk publicly expressed support for Trump for the first time and pledged to donate approximately $45 million per month to a new Super PAC to support Trump’s presidential campaign.
According to records from the Federal Election Commission, Tyler and Cameron Winklevoss, the co-founders of Gemini, each donated $250,000 to the Trump Super PAC. Furthermore, according to public data, the Trump Super PAC, which is supported by Joe Lonsdale of Palantir and cryptocurrency billionaires Cameron Winklevoss and Tyler Winklevoss, raised $8.8 million in the second quarter of this year.
The shift in cryptocurrency stance may be a political tactic
Some cryptocurrency insiders who understand US politics well are skeptical of Trump’s recent positive remarks about cryptocurrency. Arthur Hayes criticized Trump’s sudden interest in cryptocurrency as insincere in his recent blog post “Hot Chick.” He stated that “pleasing the young, politically active, and nouveau riche cryptocurrency community” is just a means for Trump to win the election. He also predicted that once Trump takes office, his so-called support and concern for cryptocurrencies “will become distant memories.”
Criticism from the cryptocurrency community goes beyond this. At Trump’s NFT dinner in May of this year, he was pointed out to have a lack of genuine knowledge about cryptocurrency policies. During the event, only a few questions focused on cryptocurrencies were asked, and his understanding of cryptocurrency policies was sporadic and not worthy of scrutiny. When asked how he would change the policy of expelling the cryptocurrency industry from the country, he said, “We will stop it because I don’t want that. I want to keep them here if we’re going to embrace it.” Such an answer clearly did not provide specific policy directions and measures.
Regarding Trump’s sudden shift in cryptocurrency stance, senior figures and observers from the cryptocurrency community also point out that Trump’s previous attitude towards cryptocurrencies was not friendly and he even publicly claimed that Bitcoin was a scam and called for stronger regulation. Now that his position has made a 180-degree turn, it is hard not to suspect his motives. As criticized by Arthur Hayes and others, Trump’s positive remarks about cryptocurrencies may be temporary political posturing. It remains unknown whether he will fulfill his promises and bring substantial benefits to the cryptocurrency industry if elected.
Despite being shot, Trump stated that he would still deliver a speech at the Bitcoin Conference in 2024, and it remains to be seen whether his speech will provide deeper insights into cryptocurrencies and future policies.
