President-elect Trump launched his own cryptocurrency overnight and swiftly appeared to make more than $25 billion on paper for himself and his companies.
Why it matters: The stunning launch of $TRUMP caught the entire industry off-guard, and speaks to both his personal influence and the ascendancy of cryptocurrency in his administration.
- It also speaks to the nature of the crypto industry that someone could have $25 billion worth of something that literally did not exist 24 hours previously.
lol crypto is worth jack shit. I can just keep sending the same money to myself and it would cause the price to go up…
This isn’t your everyday crypto scheme.
This is foreign bribes being laundered.
This right here is the right answer. Trump just created the ultimate bribing machine for himself.
That’s not how markets work…
it’s how crypto markets do. Since anonymity is a feature, any transactions will increase its value due to it being “used” more
No, because that would be an infinite money glitch, everyone would be rich… (that uses crypto).
It’s actually very simple basic market-economics, and independently of anonymity, you buy, you’ll drive the price up, you’ll sell, you’ll drive the price down. It’s slightly more complicated, because it involves makers (they set the price at which to sell or buy) and takers (which take the offer by the maker) and psychology (e.g. promotion on youtube to drive the price up) and obviously increasingly algorithms. But in general it’s still demand and supply, anonymity doesn’t have anything to do here apart from being more prone to scams. Take Monero as example one of the most anonym cryptos but still fairly stable (in crypto terms).
So to drive the price up, you either have to have some kind of good promotion (which at the end is just money from someone else), or a lot of money yourself.
the value of a cryptocurrency is based on its perceived value. Perceived value is based on market activity. If I keep sending money to myself it just shows up as market activity, with nobody being able to tell i sent money to myself.
gdp works this way too btw. I sell you $1 worth of stuff, you sell me $1 of stuff, nobody is any richer but gdp went up by $2. Except we can filter this kind of abuse out because it’s not anonymous.
But GDP is not the price of an asset, it’s a metric to measure the economic activity.
Is it really that hard to understand? The price is dictated by markets… Like with stock and other speculative assets. It’s a little bit wilder, possibly due to anonymity and wild promotion on various platforms (like youtube) etc. But in it’s essence it’s still a market…
the price of an asset (when the asset is the currency itself) is based on its economic activity. You said so yourself. The price is dictated by markets. By how much is bought and sold on markets. That is the definition of economic activity. Which part of that do you not understand?
Well you brought GDP as argument, which just doesn’t have anything to do with the price of an asset. If you sell a lot and buy a lot GDP grows, but the price of that asset can still be the same at the end.
Getting back to your initial argument:
Since anonymity is a feature, any transactions will increase its value due to it being “used” more
This is just plain wrong, as I could just make myself rich according to that logic… I still need to have that FIAT-money, need to exchange it (in which case I have driven the price up), but now I have less FIAT, so either I have more FIAT to further drive the price, or well I need to cash out in which case I’ll drive the price down. If I just send crypto from one (anonymous) account to another it just does… nothing to the price…
I just finished watching Chernobyl and comments like this are now going to remind me of the fact that the reactor could not have exploded because that’s not how RBMK reactors work.
Huh? Not sure how crypto-markets and reactors are related to each other…
Former is “just” based demand and supply, which of course can still be quite chaotic, because well demand and supply is chaotic (due to all kinds of factors)…
Trump launches
meme coinmoney laundering scheme, apparentlymakeslaunders more than $25 billion overnightFtfy
Bingo, the CCP can’t bribe Trump directly but they can buy a ton of crypto.
All the wrong people got money.
QE was a method of upward distribution of wealth.
What is QE?
Quantative Easing
What a world we live in
The fact that fartcoins are 30 times as “valuable” as Trumps idiot-coins should be evidence enough.
Isnt this showing the exact opposite? Fart coin is less valuable?
To be fair the valuability of a coin is not that much related to its popularity, but to its difficulty of obtention through proof-of-work (of proof of stake)
Meanwhile, back in reality:
The venture was co-ordinated by CIC Digital LLC - an affiliate of the Trump Organization - which has previously sold Trump-branded shoes and fragrances.
Meme coins are used to build popularity for a viral internet trend or movement, but they lack intrinsic value and are extremely volatile investments.
https://www.bbc.com/news/articles/c9vmym2jvy9o.amp
Just because you SAY something is “worth hundreds of billions” does not mean it is actually WORTH hundreds of billions.
Yes. Just seeing the words “market cap” should tell you something. It is a completely meaningless term when you are talking about crypto currency.
The price means somethings, the amount held means something. The entity that sold them can mean something. But market cap isn’t it.
To be fair, “market cap” is also a bullshit metric for stocks. The market price only ever represents the price of the currently traded stocks. Just dump 20% of the stock of any large company on the market and see how well their “market cap” lasts.
Fuck, I just looked at this yesterday and thought why not put a few monies in. And then went to sleep without doing anything.
Not doing something to help Trump just to enrich yourself is the ethical option.
There’s that, but then again if I would have had managed to exit before the crash (which apparently already somewhat happened) I would’ve been practically stealing money from some MAGAs. But probably only those MAGAs who least deserve to be stolen from. The actual demons know exactly when to exit and are only going to profit from this.
You still would have helped Trump make money.
This is so fucking stupid. Everything. I feel like we’re living in a fucking clown show.
Think of it this way I can’t bribe Trump but if I bought 20% of this shitcoin I might be able to get his ear.
The amazing real circus
Can’t decide if I’m annoyed that this poorly-disguised influence scheme will go unpunished, or if thrilled that many very deserving people will be separated from their money.
Why would you be happy about their money going to even less deserving people?..
if you felicificly calculate it it works out
They are only worth what
peopleidiots pay for it.It’s money laundering
Isn’t that a conflict of interest?
Who’s going to stop him?
His whole political career has been a conflict of interest.
It’s not a crime if it’s the president, the scrotus said so
We should have seen that coming.
There is a lot more of this coming.
Trump intends to leverage his office to make his family wealthier.
Having an ETF doesn’t make you real. Being Bitcoin makes you real.
I wish there was a better metric at the moment, but there isn’t.
$25 billion, in paper. The value will be down to zero way before he manages to sell off even $1 billion from it. And thats a generous guess. Meme coins don’t retain value.
Making ANY money this way is outrageous, but we sooner solve world peace and world hunger than Trump being able to sell this off for the current paper value.
Yeah I feel as though he won’t get that amount of money either and making any money is also outrageous.
I feel like the biggest pressing issue here is that this is not meant to go to the moon and stay there. Instead I think the real motive is to make inflation. Look at it, it’s not meant to gain that amount of value, it’s meant to skew our perception of value. This way the current inflationary prices don’t look out of place when, in reality, everything is over valued. I guess it is also meant to make some people more complacent to inflation by giving them hope of “there being a chance” even though it clearly details how screwed over most of them will end up in the end compared to the house/dealer. Gambling is and will always be a big problem that adds more pressure to an otherwise unhealthy economy.
I don’t deny the possibility, but that sounds like a lot of foresight which I’m not ready to attribute to Trump or his team. Additionally I don’t think they care about “the people”. The voters served their purpose. They are meaningless to them now. They will continue to produce anger and outrage, and will extract as much money as possible while it’s still possible.
I think it’s a simple money grab. Just not a $25 billion one.
Holy shit, inb4 he pumps and dumps and avoids jail cause of presidential immunity
Is that even illegal yet?
Nothing is illegal for a POTUS. He cannot be charged with any crime while in office, running for office, considering to run for office, and/or dreaming of being in office.
I’d love to be POTUS. Time to download some Nintendo games! /j
Pump and dump schemes? Yes, according to earlier incarcerations
For stocks, yes, but crypto is basically unregulated as far as I know.
And trump intends to keep it unregulated because of course he’s seen the quick buck he can make with that scam
While I agree with the sentiment here, the market cap of the coin is currently at 7.6B according to https://coinmarketcap.com/currencies/official-trump/
Anyone know why there’s such a big discrepancy here? Maybe I’m misread?
Circulating vs total supply?
That’s how they got the number but it’s a big mistake to use total supply. Also it’s not because the market cap is 12G that Trump received 12G. It’s probably much much lower. He must have made only 50 to 100M in fees, if any. And the price he sold the coins at was much much lower than today
Market cap makes zero sense in crypto currency.
America for sale. You hear that Republicans? You just got sold out.
I doubt they can hear much of anything with their heads lodged that far up Trump’s ascending colon.
