June 23, 2024

Trump Campaign Embraces Cryptocurrency Donations in Fight Against “Socialistic Government Control”

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Things begin to heat up in the U.S. Presidential race with a bold move by the Trump campaign to align with cryptocurrency enthusiasts and critics of government financial oversight, the Trump campaign announced on Tuesday that it will begin accepting cryptocurrency donations. This initiative is positioned as a stand against what the campaign describes as “socialistic government control” over U.S. financial markets.

Supporters of former President Donald Trump can now donate using any cryptocurrency accepted through the Coinbase Commerce platform, the campaign stated in a press release. This decision links President Joe Biden, who is seeking reelection, with Senator Elizabeth Warren (D-Mass.), a prominent crypto critic who has vocally advocated for stricter regulations on the industry.

“Biden surrogate Elizabeth Warren said in an attack on cryptocurrency that she was building an ‘anti-crypto army’ to restrict Americans’ right to make their own financial choices,” the campaign said, referencing a reelection ad Warren posted on X (formerly Twitter) in March 2023.

“MAGA supporters, now with a new cryptocurrency option, will build a crypto army moving the campaign to victory on November 5th!” the campaign declared.

This strategy opens a new potential funding stream for the Trump campaign, which, despite raising more funds than Biden in April, still trails in cash on hand. Cryptocurrency donations will be reported as in-kind contributions, similar to stock gifts, allowing the campaign to decide whether to liquidate the digital assets or hold onto them.

“Contribution limits and disclosure requirements for crypto donations will follow Federal Election Commission regulations,” the Trump campaign noted.

The acceptance of cryptocurrency donations is the latest effort by Trump to appeal to the crypto community, which tends to be younger and more male. According to April 2023 polling from Pew Research Center, this demographic aligns with the burgeoning PoliFi crypto sector, where politics, finance, and cryptocurrency intersect.

The announcement has already had a significant impact on the market. A token themed after Donald Trump, named TRUMP, surged in value by 14% on Tuesday following the news. Over the past two weeks, the TRUMP token has risen nearly 75%, according to data from CoinGecko. This token is part of the PoliFi sector, which boasts a collective market cap of $749 million.

Despite the token’s name, it is not officially linked to Donald Trump. However, traders are using the TRUMP token as a speculative investment on his ongoing presidential campaign. Some early investors in the token have seen returns exceeding 1,600%, with one address reportedly holding over $5.5 million worth of the token.

Several addresses that invested six-figure sums in TRUMP tokens are now sitting on unrealized gains of over $1 million. These investors are gradually selling their holdings to avoid a sudden price drop. Notably, these transactions occurred before the Trump campaign’s announcement to accept crypto donations.

Recent buyers of the TRUMP token, however, have experienced poor returns on their investments, as shown by on-chain data provider Nansen. In a related development, a wallet purportedly linked to Trump received $7,100 worth of TRUMP tokens from the meme coin’s developers between August and October 2023, a common marketing tactic to attract attention and investor interest.

As the 2024 presidential campaign heats up, the Trump campaign’s embrace of cryptocurrency donations marks a significant step in merging political fundraising with the rapidly evolving world of digital assets.

Digital Assets Desk

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