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Trump’s pro-crypto bluster at the NFT gala lacked political substance
PALM BEACH, FL. — During his first stint in the White House, Donald Trump was not a fan of cryptocurrencies; he once tweeted that they were “based on nothing.” He later sold millions of dollars worth of NFTs. This week he rebranded himself as the cryptocurrency front-runner.
“If you are in favor of cryptocurrencies you will vote for Trump because they want to end it,” he said during a party Wednesday night at Mar-a-Lago, referring to Democrats and President Joe Biden. He also promised to make sure his campaign can accept cryptocurrency donations.
The 77-year-old candidate’s apparent turnaround came as no surprise to his audience of about 200 supporters. Many had purchased $10,000 Trump Trading Card NFTs to attend this surreal and stuffy outdoor reception at the former president’s Florida mansion. A CoinDesk journalist (like +1) also participated.
For nearly an hour, Trump answered questions from a sea of sweat-soaked men in suits. Only a handful of them focused on cryptocurrencies, an incredibly niche issue that was the nominal focus of the entire event.
But it was enough to clarify a few things:
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Trump is not a cryptocurrency expert.
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Trump is an expert in sale cryptocurrencies.
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The first two points don’t matter because Trump has declared himself the champion of cryptocurrencies.
An exchange highlights points 1 and 3 (we will return to 2 later). When asked what he thought about central bank digital currencies (CBDCs) and “government blockchains” (two things cryptocurrency advocates generally oppose), Trump responded, “I think everything has its place.”
He continued:
“There are amazing things happening, I mean cryptocurrencies. If you went back to cryptocurrencies a couple of years ago, people said they wouldn’t make it, but now they’re in record numbers. I guess you could say it’s a form of currency. and I think I’m in favor of that, increasingly I’m in favor of that.”
Trump held a long question and answer session (Danny Nelson/CoinDesk)
The substance of Trump’s support for cryptocurrencies may be less important to the (probably small) industry group single-issue voters that he’s saying something positive about it. Trump appears to be the first major party presidential candidate to embrace cryptocurrencies.
Blast Biden
On the other side of the race is an openly hostile presidential administration. Joe Biden’s SEC Chairman Gary Gensler is taking legal action against many parts of the cryptocurrency industry. And last Wednesday, just hours before his opponent’s golf resort gala, the President vowed to block the House’s attempt to dismantle an SEC accounting rule for cryptocurrencies that politicians opponents they argue it has hindered the growth of the industry.
The story continues
“Biden doesn’t even know what it’s about. If you ask Biden, ‘Sir, are you for or against cryptocurrencies?’ he’ll say, “What’s that? Take me off the stage.” He has no idea,” Trump said. Whether or not this somewhat plausible presumption is true, Trump followed up with an attack on Gensler, an official with expertise in cryptocurrency.
“I will say this: I’m fine with it, I want to make sure it’s good and solid and all that, but I’m fine with it,” Trump said of cryptocurrencies. He later said, “If we want to have what we have, we will have to embrace a lot of things that not everyone likes.”
Hours before Trump’s impromptu Q&A, Biden’s campaign team roasted “people who were convinced to pay up to $10,000 for simple digital images of him” in an email to supporters. The email criticized Trump for hosting a lavish NFT dinner instead of campaigning during his midweek break from court.
But Trump era election campaign on Wednesday evening. He was vying for the votes of the exceptionally loud crypto crowd that Biden had completely snubbed. Of course, only a few hundred have heard it firsthand. Their videos of Trump’s pro-crypto musings ricocheted across social media and triggered a torrent of media coverage for the self-proclaimed political champion of cryptocurrencies.
“There are 50 million cryptocurrency holders in the United States. That’s a lot of voters,” said Ryan Selkis, CEO of crypto data platform Messari, in the packed Mar-a-Lago ballroom where VIPs (those who bought $10,000 worth of NFTs) mingled with dinner attendees (who paid $4,700). Trump had unexpectedly called Selkis to the stage.
The claims emerging from Wednesday’s NFT gala could accelerate the polarization of cryptocurrencies by locking them in the same “us or them” shackles that bind much of American politics. Bitcoin’s libertarian roots hardly resonate today; Cryptocurrencies have their supporters both of the nave.
The most powerful voice in Republican politics has brushed aside the bipartisan reality of cryptocurrencies by declaring that Democrats want to kill them. “The Democrats are very much against it,” Trump said, hours after 21 of 213 House Democrats voted to repeal the SEC accounting rule.
Trump has proclaimed himself the industry’s only hope. His fluency in industry matters was erratic. Asked how he would change hostile U.S. policies pushing crypto firms out of the country, he said: “We’re going to stop it, because I don’t want it, I don’t want it. I want it, if we’re going to accept it, then we have to leave them here. “
Backers paid up to $10,000 to participate. (Danny Nelson/CoinDesk)
“We made NFTs popular again”
There was one area of cryptocurrencies where Trump spoke more or less expertly: his NFTs. Three collections of Trump NFTs – digital trading cards depicting a super-jack Donald in various states of patriotism – have generated millions of dollars in sales. Wednesday’s gala dinner celebrated high rollers who purchased its third “Mugshot Edition” collection.
“We did this when NFTs weren’t popular and made them popular again,” Trump said of his cards, adding that some NFT buyers have made tens of thousands of dollars on the resale market.
Asked by an attendee whether he would sell a fourth NFT collection, the longtime businessman demurred. “I believe in supply and demand. And as you know 1 did great, 2 did great, 3 did great. At some point maybe things change.”
He surveyed the audience: How many Mugshot high rollers wanted a collection of Series 4 NFTs? Most raised their hands. Trump looked baffled: “Based on supply and demand, wouldn’t that keep the prices of things you’ve already purchased, wouldn’t that keep them lower?” He tested their resolve. “Who would like that Not see a fourth collection for this reason?” Only a couple of hands went up.
“Okay, a couple of economists,” Trump said to laughter from the crowd.