Selling Trump: The Former President's Crypto Business Circle and "Business Tactics"

Author: Mia, ChainCatcher

Editor: Marco, ChainCatcher

At 6:11 PM Eastern Time on July 13, former President Trump, a leading figure in the presidential election, was attacked during a campaign rally in Pennsylvania. With the sound of gunfire, the call for Trump to win the election reached unprecedented heights.

As the suspense of the U.S. election gradually became clear, this assassination attempt also became a catalyst for market trends, leading to a rebound in cryptocurrency, which quickly broke through $60,000 and briefly surged to $65,000.

Two days after narrowly escaping assassination, Trump announced on his social media platform Truth Social that he had chosen Republican Senator JD Vance from Ohio as his vice presidential pick. Vance has long been a supporter of crypto technology and has publicly disclosed that he owns over $200,000 in crypto assets. He appreciates the freedom that cryptocurrencies provide through their censorship-resistant properties. This nomination of Vance undoubtedly strengthens Trump's camp's belief in cryptocurrencies.

During his presidency, Trump appointed several officials who were friendly towards cryptocurrencies, which may be one reason for the collective rise of crypto assets when Trump's election prospects looked good.

Several Crypto-Friendly Individuals Served in Trump's Administration

Trump's 2024 vice presidential pick, J.D. Vance, is a supporter of cryptocurrencies. In addition to owning crypto assets, he has publicly criticized the SEC's excessive regulation of cryptocurrencies.

J.D. Vance voted in the Senate to repeal the highly contentious SAB-121 accounting standard for the cryptocurrency industry and plans to propose a more friendly regulatory framework for cryptocurrencies.

During his presidency, Trump appointed several crypto-friendly individuals to key positions.

On July 21, 2017, Anthony Scaramucci, founder of Skybridge Capital, was appointed as Trump's White House Communications Director. Skybridge Capital is a hedge fund managing $3.5 billion in assets, nearly half of which is related to crypto assets. Its founder, Anthony Scaramucci, is also a staunch supporter and advocate of Bitcoin.

On December 15, 2018, Trump appointed Bitcoin supporter Mick Mulvaney as White House Chief of Staff. Mick Mulvaney is a supporter and advocate of cryptocurrencies, and while working in the House of Representatives, he was one of the legislators dedicated to creating a blockchain core group (a group focused on drafting and formulating new laws for emerging technologies like cryptocurrencies) and helped draft two new legislative proposals supporting the development and evolution of the blockchain industry—the House Resolution 1108 and House Resolution 7002.

In April 2020, Trump appointed billionaire and blockchain supporter Mark Cuban as a consulting advisor. Mark Cuban is known for boldly advocating cryptocurrency investments and compared the crypto landscape to the explosive growth during the internet boom of the 1990s, emphasizing its potential for huge returns.

On June 4, 2020, Trump nominated SEC Commissioner Hester Peirce for a second term, who earned the nickname "Crypto Mom" for her support of digital assets and criticism of excessive regulation of crypto assets.

The Presidential Family's Love for NFTs

The Trump family also enjoys issuing crypto assets.

Former First Lady Melania was the first in the Trump family to actively embrace cryptocurrencies. At the end of 2021, Melania launched her first NFT collection "Head of State" through her website, priced at 1 Sol, which was about $185 at the time, released on Solana.

When asked by Fox about Melania's NFT, Trump stated, "She will do very well; her imagination is very rich."

After leaving the White House, Trump has been adept at profiting from his name for branding, and the easily influenced crypto market has become the best stage for this.

Following his wife's example, Trump began to embrace NFTs and announced the release of limited edition Trump Digital Trading Cards NFTs on Truth Social in December 2022. The NFTs were minted on Polygon and sold for $99, selling out immediately after release. According to OpenSea data, a total of 45,000 NFTs traded for over 648 ETH, approximately $785,000, with a floor price that once reached 0.84 ETH.

Since then, Trump's series of NFT releases has been unstoppable, launching the "Win Trump Prizes," the second series of "Trump Digital Trading Cards," and the "Mugshot Edition," offering NFT benefits including dining with Trump, video calls, and golfing. According to relevant documents, Trump earned $2.8 million from NFT sales.

In the face of a U.S. society led by Generation Z youth, the cryptocurrency community has become an important force of influence.

According to Coinbase data, in 2023, 52 million Americans owned cryptocurrencies, accounting for 20% of the adult population in the U.S. In this trend, to maximize political goals and business interests, as well as to win votes, Trump has become a "sudden crypto supporter."

In his campaign speeches, Trump stated that if he were to become president again, he would never allow the creation of a Central Bank Digital Currency (CBDC), as he believes it would give the government absolute control over funds. On May 9, he officially accepted campaign donations in the form of cryptocurrencies, which garnered him significant support and solidified his footing in the election.

Pardon for Crypto Individuals

Before leaving office in 2021, Trump pardoned Ripple board member Ken Kurson.

According to The New York Times, Trump had previously taken a private plane provided by a scrap metal recycling tycoon and cryptocurrency miner to meet with supporters at the end of 2021.

To attract many young American voters, Trump promised the public in May of this year that if he wins, he would pardon Silk Road founder Ross Ulbricht and emphasized support for self-custody rights. This undoubtedly resonated widely within the crypto community, as Ross is considered a martyr by many cryptocurrency enthusiasts and libertarians.

Additionally, Trump's recent public statements regarding the crypto space have also won support from the U.S. crypto industry.

Kraken co-founder Jesse Powell publicly stated that he donated $1 million to Trump, primarily in ETH.

After Trump's attack, Bitcoin Magazine CEO David Bailey publicly announced plans to raise $15 million for former President Trump's re-election campaign later this month.

Moreover, "Dogecoin Father" Elon Musk publicly expressed his support for Trump for the first time, promising to donate about $45 million monthly to a new super PAC to support Trump's presidential campaign.

According to records from the Federal Election Commission, Gemini co-founders Tyler and Cameron Winklevoss each donated $250,000 to the Trump Super PAC.

Additionally, public data shows that the Trump Super PAC, previously supported by Palantir's Joe Lonsdale and cryptocurrency billionaires Cameron and Tyler Winklevoss, raised $8.8 million in the second quarter of this year.

Shift in Crypto Attitude May Be a Political Maneuver

Regarding Trump's recent positive statements about cryptocurrencies, some crypto individuals well-versed in American politics are skeptical.

Arthur Hayes criticized Trump's "sudden concern for cryptocurrencies" in his recent blog post "Hot Chick," stating that "catering to the young, politically active, and newly wealthy crypto crowd" is merely a tactic for Trump to win the election. He also predicted that once Trump is in office, his so-called support and concern for cryptocurrencies "will become a distant memory."

Skepticism from the crypto community does not stop there.

As early as May during the Trump NFT dinner, Trump was pointed out for not truly understanding cryptocurrency policy. In nearly an hour of speaking, only a few questions focused on cryptocurrencies, and his understanding of crypto policy was sporadic and not worth scrutinizing. When asked how he would change the policy of driving the crypto industry out of the country, he stated, "We will stop it because I don't want that. I want if we are to embrace it, then we must let them stay here," but such an answer clearly did not provide specific policy direction or measures.

Regarding Trump's sudden shift in attitude towards cryptocurrencies, some senior figures and observers in the crypto community pointed out that Trump's past attitude towards cryptocurrencies was not friendly; he even publicly declared Bitcoin a scam and called for increased regulation. Now that his stance has made a 180-degree turn, it is hard not to question the motives behind it. As Arthur Hayes and others have criticized, Trump's positive crypto rhetoric may just be a temporary political stunt, and whether he will truly fulfill his promises and bring substantial benefits to the cryptocurrency industry if elected remains an unknown.

Despite the assassination attempt, Trump stated that he would still deliver a speech at the 2024 Bitcoin conference as scheduled, and whether the content of the speech will provide deeper insights into cryptocurrencies and future policies remains to be seen.