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Cnn
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President Donald Trump promised crypto investors that he would inaugurate an era of legitimacy for an industry that has long been relegated to financial nature – rejected by certain traditional investors as a highly speculative bet at best or a PONZI program developed in worse.
But a few days before its inauguration, Trump shocked many of his cryptography supporters by tightening a digital token known as the meme piece, an active ingredient without value that is negotiated on media threshing and is an essential vehicle for Scams called carpet shot.
To be clear, all coins are not scams, and coins $ Trump and Melania seem to be integrated to prevent carpet traction. More specifically, Trump Coin’s website indicates that its majority holders are subject to a three -year unlocking calendar, so they cannot sell everything at the same time. But even without selling a single token, the Trump Org. had ratified around $ 58 million in a single day in negotiation costs, according to the Crypto researcher and former Coinbase Conor Grogan frame.
However, the same parts have become known for carpet prints, in which the developers launch a room, increase its price and rest quickly. If it seems familiar, the influencer of “Hawk Tuah”, Haliey Welch, was recently continued on her own room, which briefly climbed to a market capitalization of $ 500 million before dropping by 90%. Welch said in a statement published on X last month that it took the situation seriously and that it is trying to help affected investors.
The pieces even represent the absurd side, sometimes fraudulent, of the crypto that the more and more rich supporters of bitcoin and largely negotiated ether would like to pass. The fact that the first American “Pro-Crypto” president has a tangible utility token has part of the industry concerned about Trump and the judgment of his advisers while they are preparing to revise the American regulatory regime with new zeal For digital assets.
“Trump must dismiss his cryptography advisers, from top to bottom,” tweeted Gabor Gurbacs, founder of the Digital Asset Society Pointville.
A giant ethical concern focuses on the majority property by Trump of tokens: 80% of the range of the part is owned by the affiliates of the Trump Cic Digital and Fight Fight Fight LLC – A concentration that seems designed to enrich personally the president. Trump Org did not respond to a request for comments, but Eric Trump, executive vice-president of the company, said in an X Post on Saturday: “I am extremely proud of what we continue to accomplish in crypto. $ Trump is currently the hottest digital in the world. »»
“Even fans of even money coins are skeptical about projects where the majority of tokens are not held by a larger community and seem to be designed to benefit in order to disproportionate to initiates,” said Gareth Rhodes, Managing Director of the Pacific Street consulting company. “But it is early, and the launch team can always take measures to make it a more community -focused project.”
Ethics experts quickly criticized the apparent conflict of interest.
Walter Shaub, the ethical guard dog who clashed with Trump in his first term before resigning, my colleague Matt Egan told the play of the play even suggests “the very idea of ethics of the government is now a flowing crater ”.
The Trump administration, which officially entered the White House on Monday, did not respond to the request for CNN comments.
The global cryptography market of 3.5 billions of dollars is a large tent, and although tokens like Bitcoin dominate the industry, the open source and decentralized nature of the blockchain, the infrastructure of the crypto, allows Any developer to easily launch a token, to increase the price and get away with impunity. According to Forbes, between 40,000 and 50,000 new parts of memes are created every day, with a combined market value of $ 100 billion.
People tend to buy memes parts for novelty, but this is about as risky as playing a casino slot machine. Trump’s same corner climbed after its launch on Friday, from $ 6.50 to $ 75 on Sunday, according to Coingecko data. Then he tumbled, losing more than half of his value on Monday while Trump entered the White House without any public sign to his crypto program. The price oscillated below $ 40 Tuesday.
Last week, only a few days before Trump launched his token, the New York State Financial Services Department published a consumer alert on parts even “proliferating”, which present “an exceptional risk of fraud and loss of funds ”.
Matthew Homer, a former financial regulator and now a general partner of the Crypto Firm Department of Xyz, has echoed a refrain from the common industry that a lack of regulatory clarity concerning the crypto contributed to these risk of fraud.
The approach to Securities and Exchange Commission, he said, “has created a situation where projects with authentic utility face significant regulatory obstacles, while purely speculative assets do not do so.”
While Bitcoin, the original cryptocurrency, presents itself as a sophisticated innovation with the power to revolutionize the financial system, the pieces even have little function outside the game. They are also extremely volatile, in part because they They are generally held by a small ribbon of investors rallying around a niche and ephemeral of Internet culture.
In other words, they are not serious, and the cryptographic bulls fear that the president’s stamp delays progress on the serious problems that he has promised to tackle, as to give investors more clarity and openness regulatory. In addition, this does not help crypto in its quest for several years to shake up its sometimes summary reputation if the president regulating American industry could benefit at the same time.
“Generally, the introduction of any play of memes disrupted the feathers of those who are serious about the use, legitimacy and security of crypto,” said Kyla Curley, expert in Crypto and Global Partner Advisory Stoneturn. But, she said, the pieces even Trump “should not lead us to assume that the Trump administration will not seek to continue the cryptographic regulatory environment.”
In the whole industry, there seemed to be the feeling that cryptographic adults would simply need to hold the nose through the drama of the same. It may be embarrassing, but it is better than suffering during the reign of the admitted skeptic of the Crypto Gary Gensler, who supervised the Commission of Securities and the Exchange and has become an epotic of the industry.
“The industry, whether or not they are fans of coins, are enthusiastic by a new era for the regulatory approach to the crypto,” said Rhodes.
