Dem
47
GOP
53
Leaders in the crypto world are trying to convince people that crypto is a new kind of solid investment, not the Ponzi scheme that it actually is. When Donald Trump shows up with a new coin, $TRUMP, and becomes worth $50 billion in 3 days, that doesn't give off the vibe of a solid asset. And then it dropped 36% when Melania came out with her coin, $MELANIA, further showing that the whole thing is a house of cards that can collapse at any moment. Many of the crypto world's movers and shakers don't like this.
In addition, some people in the crypto world were worried that people would (correctly) perceive $TRUMP as a way for people seeking to curry favor with the president to funnel money to him in a sort of legitimate way. Nic Carter, a crypto investor, is worried that $TRUMP could open the way to rampant violations of the emoluments clause (and possibly create a backlash). Lee Bratcher, of the Texas Blockchain Council, said: "In my subjective opinion, it isn't a healthy development." Crypto lawyer Hailey Lennon tweeted: "I don't think Trump knows or cares what the ramifications of his meme coins are besides his short term personal profit." Maya Bakhai, a general partner at Spice Capital, is worried that the interests of Trump and the crypto illuminati are diverging from those of the small retail investor. Bitcoin Magazine denigrated $TRUMP on eX-Twitter.
Democrats don't know what to do. Warning people that crypto is really a Ponzi scheme and could collapse anytime doesn't make them popular with people who have made money on it (on "paper," so far). But they know that if they encourage it and it goes south fast, they will be blamed. Rep. Maxine Waters (D-CA), ranking member of the House Banking Committee, said: "The launch and sale of this coin is yet another reason why all Americans and policymakers should exercise extreme caution on crypto." That's really all they can do: Warn people about the huge risks. (V)