Former President Trump embraces crypto, marking a major shift in Republican politics.
TL;DR
- Trump shifted from calling Bitcoin a "scam" in 2021 to becoming a major crypto advocate in 2024
- He has:
- Launched NFT collections
- Accepted crypto donations for his campaign
- Spoken at Bitcoin events
- Teased a DeFi project called "World Liberty Financial"
- This aligns with the Republican Party's growing pro-crypto stance
- He aims to capture the "crypto vote," potentially decisive in swing states
- Trump's crypto strategy includes:
- Promising to fire SEC Chair Gary Gensler
- Opposing Central Bank Digital Currencies (CBDCs)
- Positioning the US as a crypto leader
- His approach has energized crypto enthusiasts and brought in significant donations
- Challenges include balancing niche crypto interests with mainstream economic concerns
Donald Trump's journey in crypto has been nothing short of surprising, much like his first foray into politics which took him all to the White House in 2017.
In 2021, the former president dismissed Bitcoin as a "scam," expressing his concerns about its competition with the U.S. dollar. Fast forward to 2024, and Trump is now probably the most important crypto advocate in the US, marking a dramatic shift in his stance and potentially reshaping the political landscape by going after the neglected American crypto vote.
The Trump pivot reflects a broader change in the Republican Party's approach to crypto, driven in part by the growing influence of crypto voters and the industry's increasing political donations.
As I explained in a previous PolitiFi article a few months back, the crypto vote has the potential to decide the next president. It’s considered a key election issue for 20% of voters in six swing states, and crypto-positive voters are more likely to be male, younger, and Black or Hispanic, according to a recent DCG Harris poll.
The battle lines are drawn, and it’s clear that The Donald is now deploying every weapon in his crypto arsenal, from NFTs to Bitcoin to crypto donations, memecoins, and next up, DeFi. It certainly also helps that he managed last month to add to his roster his political rivals and now former Democrats Robert F. Kennedy and Tulsi Gabbard, who already pledged their support for Bitcoin at its 2023 Miami event.
So, let’s take a look at how Trump became a crypto convert, and how he’s viewing the space and using its tools to his benefit.
Join us in showcasing the cryptocurrency revolution, one newsletter at a time. Subscribe now to get daily news and market updates right to your inbox, along with our millions of other subscribers (that’s right, millions love us!) — what are you waiting for?
Trump Becomes Crypto’s Champion in 2024
Trump’s courting of crypto began abruptly, but like the saying goes, there were signs.
In December 2022, Trump surprised everyone when he launched an NFT collection of digital trading cards commemorating key moments from his presidency.
The first release offered 10,000 NFTs at $50 each, sold via platforms like USA Memorabilia and Parler.
In May 2024, Trump announced that he would accept donations in various cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin. This move not only broadened his funding base but also signaled a commitment to integrating crypto into mainstream politics.
Then, in 2024, Trump got “orange-pilled” by a group of Bitcoin miner friends based in Puerto Rico, who educated him on Bitcoin and asked to do a BTC mining round table with him.
The rest is history.
Making Bitcoin Great Again!
In June 2024, with crypto markets starting to sag as the summer holiday doldrums approached, he met with the U.S. Bitcoin mining industry at his Mar-a-Lago resort in Florida. He afterwards said that crypto users should vote for Trump because he will stand up to Biden’s hatred of Bitcoin. The result was an immediate boost to digital asset prices, and a $4 million contribution to his campaign.
Trump carried this momentum over to July 2024, where he dominated headlines after announcing that he would speak at the Bitcoin 2024 conference in Nashville.
"I am proud to be the first American president to address a Bitcoin event anywhere in the world," he declared at the world’s flagship Bitcoin event to rapturous applause, revealing a series of crypto-friendly proposals which included firing crypto antagonist Gary Gensler on his first day in office.
During his appearance, Trump emphasized the importance of American leadership in the crypto space, stating, "If crypto is going to define the future, I want it to be mined, minted, and made in the USA."
This rhetoric ties crypto innovation cleverly to his "Make America Great Again" platform, appealing to both tech enthusiasts and his traditional base.
Meme Coins
Talking about making America great again, Trump’s support of Bitcoin sparked a series of popular meme coins in the first half of the year such as MAGA and Doland Tremp as the “culture casino” token sector exploded in value.
Trump’s Nashville appearance and successful debate against President Biden accelerated the celebrity meme token craze, as new platforms like Pump.fun made it super-easy to issue new meme tokens. Tens of thousands of Trump-themed tokens flooded crypto markets, with some only to crash to zero soon after. The most notorious amongst them were $DJT, which was rumored to be backed by his son Barron Trump. It couldn’t be substantiated.
Then, all hell broke loose on July 13th, when the ex-president narrowly escaped death during a political rally assassination attempt. The MAGA token surged to a $469 million market cap in minutes. The market declined soon after and it's now worth a third of that.
Trump’s NFT Trading Cards
Building on his 2022 NFT collection, Trump launched additional series, including the "MugShot Edition" and "America First" collection, expanding to 47,000 NFTs priced at $99 each. These newer cards came with added incentives, such as exclusive dinners with Trump.
While the initial collection sold out quickly, later releases have seen slower uptake. Reports indicate that in the most recent series, less than 21,000 out of 360,000 available cards were purchased.
Despite this decline in individual sales, the overall revenue from these NFT projects has reportedly exceeded $2 million, demonstrating a mixed but financially significant outcome for Trump's digital collectibles venture.
Crypto Donations
The crypto industry has become a major source of political donations since fraudster Sam Bankman-Fried gave $100m away to politicians before his fall. The fundraising potential of crypto extends far beyond individual donations.
The Bitcoin 2024 conference alone reportedly raised $25 million for Trump's campaign, demonstrating the industry's willingness to support crypto-friendly candidates. This influx of funds provides a strong incentive to maintain a pro-crypto stance and has likely influenced his policy positions.
Trump’s website prominently features crypto donation options, which includes depositing to US exchanges Coinbase, Gemini and Anedot. It is worth noting that Gemini founders the Winklevoss twins have already donated $2 million to Trump’s campaign.
Trump Becomes DeFiant
In late August 2024, Trump showed his crypto involvement isn't limited to rhetoric. DJT announced "The DeFiant Ones," a new crypto project later rebranded as "World Liberty Financial."
While details remain scarce and the project is still not officially launched yet, this initiative, along with Trump's sons Donald Jr. and Eric's involvement, shows that the family has big plans for crypto, specifically DeFi.
Eric Trump teased the project on social media, stating: "I have truly fallen in love with Crypto / DeFi. Stay tuned for a big announcement."
Donald Trump Jr. soon followed up, claiming:
"We're about to shake up the crypto world with something HUGE. Decentralized finance is the future — don't get left behind."
This project, while separate from his official campaign, is certainly not hurting Trump's progressive image and could potentially serve as a platform for future policy proposals.
It promises “high yield” investment opportunities, which is music to the ears of DeFi degens. The platform’s metadata hints at connecting users with “decentralized finance’s best tools for secure, high-yield crypto investments.”
It’s likely therefore that it could offer various DeFi services, including staking, liquidity mining, and yield farming.
If executed right, Trump’s championing of DeFi and all its primitives could be a game-changer for the embattled sector, However, high yield investments can also go horribly wrong as we saw with the Luna Terra collapse in 2022, which wiped billions of dollars out and a series of centralized custodial collapses followed soon after, most notably FTX, 3AC and Celsius.
Research Shows Trump’s Crypto Efforts Are Working
Recent polls suggest that crypto owners could be a significant voting bloc in the upcoming election. A Fairleigh Dickinson University poll found that Trump leads Vice President Kamala Harris by 12 points among crypto holders, while trailing by the same margin among non-crypto owners.
The poll also revealed that crypto owners tend to be young men and members of racial minority groups. As another Harris poll showed, his demographic could be crucial in swing states, where even small shifts in voter preference could determine the outcome of the election.
Republicans Embrace Crypto: A Party-Wide Shift
Trump's influence has led to a broader shift within the Republican Party, which has caught on that the crypto vote could decide this election. The GOP platform now includes language defending Bitcoin mining and opposing a Central Bank Digital Currency (CBDC). This stance creates a clear distinction from the Democratic Party's approach to digital assets. Trump has on many occasions made it clear that a CBDC would not become a reality as long as he’s president.
The Republican platform states:
"Republicans will end Democrats' unlawful and unAmerican Crypto crackdown and oppose the creation of a Central Bank Digital Currency. We will defend the right to mine Bitcoin, and ensure every American has the right to self-custody their Digital Assets, and transact free from Government Surveillance and Control."
There’s also increasing activity from within the party to create a Bitcoin strategic reserve by senators like Cynthia Lummis, who launched an initiative in July.
Kamala Harris: The Democratic Response
While Trump has been vocal about his cryptocurrency plans, Vice President Harris has been relatively quiet on the issue. However, her campaign has started to signal a more positive approach to the industry.
Brian Nelson, a senior campaign adviser, stated that Harris would "support policies that ensure that emerging technologies and that sort of industry can continue to grow."
This cautious openness to blockchain/crypto asset technology represents a potential shift from the Biden administration's more skeptical stance. It suggests that the Harris campaign recognizes the growing importance of virtual assets as an election issue and is seeking to avoid ceding this ground entirely to the Republicans.
However, the SEC’s Wells notice to NFT platform OpenSea recently casts doubts over its sincerity, and more than lip service will have to be offered by Team Harris if they want to capture some of the crypto vote.
It’s also very worrying that Harris is allegedly using Operation Choke Point 2.0 “architects” Brian Deese and Bharat Ramamurti as advisors to her economic policy plan.
The Road Ahead: Crypto as a Key Election Issue
As the 2024 election approaches, crypto is becoming a bigger and bigger political playball.
Trump's promised plan to make the U.S. "the crypto capital of the planet" has yet to be fully detailed, but it has already intensified the debate over the appropriate regulatory framework for digital assets.
Trump's criticism of current crypto sector regulations, particularly those implemented by SEC Chair Gary Gensler, has resonated with many in the community who feel overburdened by existing rules. This stance positions Trump as a champion of innovation and deregulation, themes that have long been central to his political brand.
Challenges and Criticisms
Despite the potential benefits, Trump's crypto embrace also faces challenges. Critics point out the apparent contradiction between his current stance and his previous skepticism, raising questions about the depth of his commitment to digital assets.
Additionally, while appealing to crypto enthusiasts, Trump's focus on digital assets may be seen as niche by mainstream voters more concerned with traditional economic issues. Balancing the interests of the crypto community with broader economic concerns will be a key challenge for the campaign.
There's also the question of how Trump would navigate the complex regulatory landscape surrounding cryptocurrency if elected. Promises of deregulation may appeal to his fan base, but will undoubtedly face fierce resistance from traditional financial institutions and regulators concerned about consumer protection and financial stability.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
