Thanks to Memecoinom $ Trump and $ Melania, “the US president is de facto for sale”, and Donald Trump's cryptocurrencies are used for “insolent corruption” – believes Nobel Prize winner Paul Krugman. “Economist” warns that Trump's policy on cryptocurrencies can expose the entire financial system to a serious risk.
According to the definition of the American Securities Committee (SEC), Memecoin is a kind of digital assets that are not associated with any real goods or currencies whose use or functionality is “limited or none”. Memecoins are not subject to any regulations.
Professor Krugman, a winner of the economic Nobel Prize, writes on his blog that “the US president is de facto for sale”, and the Wired magazine “Wired” estimates that “in practice, the president sells access to his entire administration”, which raises ethical doubts and is probably incompatible with the constitution.
Crytpowalutes are still the most suitable for criminal undertakings, and in the case of Trump they are used in a way that is unambiguous with corruption. Investors buying memecoins $ Trump or $ Melania buy the kindness of the president, and among the buyers are “not only wealthy foreigners, but also foreign governments” – explains Krugman. “We are talking about billions of dollars paid directly to the president and his family,” he emphasizes.
“Washington Post” pointed out that the draft law forced by the Republicans on cryptocurrencies “finally prompted the Democrats to fight” with Trump's administration. In the Senate, the Democrats did not allow voting at all, and also demanded that the law prohibiting presidents, congressmen and their families to emit their own cryptocurrency.
In the House of Representatives, during hearing on the bill, Democrats announced that due to the benefits of his own Memecoins, Trump found himself in a “conflict of interests”, and left demonstratively from the room.
The value of Trump's assets and his wife increased thanks to the emission of memecoins by $ 2.9 billion. “And more sums come to them” – reminds “WP”.
Meanwhile, he summed up the “New York Times” that since Trump offered his Memecoin four months ago, at least 764 thousand. People who bought this cryptocurrency lost money while dry investors selling $ Trump have earned a lot of sophisticated players. 58 of them earned at least $ 10 million.
Even governments “invest” in Trump
Democrats in both chambers of the Congress mobilized to rebellion information that In the cryptocurrency of the Trumps, a fund supported by the United Arab Emirates will invest $ 2 billionand other foreign entities, including the Israeli government and Hong Kong authorities, also invest in the President's family trading platform – emphasizes “WP”.
“Wall Street Journal” already at the beginning of the second term of Trump assessed in the editorial article that the president's benefits from the emission of his own digital assets and the fact that he has an impact on the regulation of the financial market is “red alerts about political and ethical threats” for American administration.
The president created a mechanism that “Wired” called “pay -to -vile”, and what is particularly dangerous in it is the fact that cryptocurrency trading is anonymously, and – as the magazine emphasizes – neither congress nor public opinion know if access to the US president was bought, for example, by Vladimir Putin.
On Monday, the auction ends, under which the main investors in the cryptocurrency of the Trump family can win dinner with the president at one of his golf fields – reminds the New York Times. 220 main buyers of the Trump cryptocurrency will be invited to dinner with the president, and 25 people who have invested the largest sums will pass a trip for VIPs after the White House.
“Wired” reminds that in the US constitution there is a clause limiting the right of officials of American administration to accept “gifts, remuneration, offices or titles from foreign governments without the consent of the Congress.” And since Trump receives payment for – de facto – access to himself, its administration, which is usually subjected to very meticulous control, the question arises whether it does not break the constitutional provisions.
For Paul Krygman, this is his broader assessment of the use of cryptocurrencies: “they have become a vehicle for illegal actions – scams, money laundering and, as you can see, bribes for politicians.”
Trump gave this “sudden status of cryptomiliarder”, which can break the law in other ways other than corruption, for example, influence the rules or make decisions in such a way as to repay those who whisper to him that they invest large sums in $ Trump – warned “WSJ”.
Krugman: It will end badly
Buying reasons and a debt of gratitude to the US President is not the only serious risk associated with the “cryptoisation of mainstream finances” – warns “Economist”. Possible poorly organized combination of cryptocurrency companies with classic financial institutions in combination with unstable cryptocurrency value increases the risk of runes to banks and system destabilization.
Trump, whose election campaign was very generously supported financially by the Barons of the cryptocurrency sector, promised his sponsors that he would lead to the deregulation of this industry. The changes introduced by his administration are heading in this direction. The “giant bubble (speculative)” is growing, based on digital assets without “any value related to reality,” says Krugman. “It will end badly, and the sooner it ends, the better” – concludes the Nobel Prize winner.
Trump “broadcast” his memecoin just before taking office. During the day of the announcement of this issue, the President Elek earned up to $ 25 billion on paper. The price of its memecoin increased by over 400 percent, but in the following months it dropped dramatically – to $ 7.5. However, when Trump announced that the 220 largest investors would be invited “to the most exclusive dinner in the world”, this price increased again and temporarily reached $ 75. On Friday, the value of the investment 220 people who had the most Trump's memecoins reached $ 160 million. The current market value of all $ Trump memecoins is $ 2.74 billion. Reuters said.
Marta Fita-Czuchnowska (PAP)
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