David Yaffe-Bellany, a cryptocurrency reporter for The New York Times, dives into the intriguing ties between Donald Trump and the crypto world. He reveals how the industry rallied behind Trump, hoping to gain legitimacy, and shares insights into Trump's ventures, including meme coins. The conversation explores extravagant crypto celebrations before Trump's inauguration and the speculative frenzy surrounding Trump-themed cryptocurrencies. Yaffe-Bellany also discusses the complex regulatory landscape and the ongoing struggle of the crypto industry to reshape its reputation after previous scandals.
The crypto industry's support for Trump aimed to legitimize their interests, culminating in the controversial launch of a meme coin post-inauguration.
Concerns arose over potential conflicts of interest as Trump's cryptocurrency ventures could exploit regulatory advantages while benefiting his family financially.
Deep dives
The Crypto Ball and Trump's Meme Coin Launch
A pivotal event in the cryptocurrency industry occurred just before President Trump's inauguration at a lavish gathering known as the crypto ball. Attended by high-profile figures in crypto, the event celebrated promises from Trump to loosen regulatory constraints on the industry. While the elite mingled and toasted their hopes for the future, Trump announced the launch of a meme coin called 'Trump' on social media, frustrating many attendees who could not capitalize on the late announcement. This moment starkly highlighted the dichotomy between the powerful insiders at the ball and the day traders at home who profited from purchasing the coin early.
The Financial Implications of Trump's Crypto Ventures
The Trump family stands to gain substantially from their cryptocurrency endeavors, with preliminary estimates indicating that their holdings could be worth tens of billions of dollars on paper. However, the real monetary gains have primarily come from transaction fees earned each time the coins are traded, amounting to around $100 million. The existence of multiple tokens, including a meme coin and the Melania coin, has sparked debate over potential conflicts of interest given Trump's position as a regulator of the industry. While initial excitement surrounded these ventures, the narrative shifted as concerns emerged about the exploitative nature of such tokens.
Public Sentiment and Regulatory Scrutiny
Although the cryptocurrency industry initially exhibited enthusiasm for Trump's engagement with crypto, sentiment turned critical with the launch of the Melania coin, leading to allegations of exploitation. Some industry voices expressed concern over the inherent conflict of interest present when a regulatory figure is linked to the creation of meme coins. Despite lingering resentment over the launch timing of the Trump coin, Trump's administration has taken actions that align with crypto interests, such as appointing industry-friendly leaders in regulatory bodies. However, the lack of regulatory scrutiny implies a potentially unchecked environment that allows for further questionable practices in the crypto space.
The crypto industry threw its weight and money behind Donald Trump, in hopes of legitimizing the industry. Before his Inauguration Day was over, Donald Trump was already enriching himself via a memecoin, one of the scammier, least legitimate-looking uses of crypto.
Guest: David Yaffe-Bellany, reporter covering cryptocurrency for the New York Times.
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