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As President Donald Trump stakes his claim on the future of cryptocurrency in America, investors and industry insiders are divided on whether his administration truly marks a turning point for digital assets.<\/p>\n
Kevin O\u2019Leary, chairman of O\u2019Leary Ventures and a longtime cryptocurrency advocate, recently lauded Trump\u2019s stance on digital assets, arguing that this administration is ushering in a \u201cnew phase\u201d for the industry. <\/p>\n
Speaking<\/a> on \u201cMy View with Lara Trump,\u201d O\u2019Leary asserted that the so-called \u201ccowboy era of crypto\u201d \u2014 marked by high-profile fraud cases and regulatory uncertainty \u2014 was over. <\/p>\n Recall that O\u2019Leary was indeed affected by perhaps the biggest crypto fraud case of all \u2014 FTX<\/a>. As an investor and spokesperson for the exchange, O\u2019Leary lost a significant amount of money when Sam Bankman-Fried\u2019s startup went bankrupt<\/a> in late 2022.<\/p>\n \u201cAll the crypto cowboys are in jail or out of business. So now we\u2019re in a new phase. There\u2019s a new tone with the government. Trump has put it forward,\u201d O\u2019Leary said.<\/p>\n But rug pulls<\/a> and devastating hacks<\/a> are still commonplace. <\/p>\n Meanwhile, crypto \u201cwhales\u201d and influencers are making a killing by pumping up coins with fake \u201cinsider knowledge,\u201d inflating prices before cashing out, and leaving everyday investors holding the bag. It\u2019s the Wild West out there, and the scammers are riding high.<\/p>\n O\u2019Leary\u2019s optimism comes as Trump embarks on one new crypto initiative after another.<\/p>\n After speaking<\/a> at the Bitcoin 2024 Conference in Nashville, the then-GOP nominee launched World Liberty Financial<\/a>. Two days before his inauguration, he unveiled the Official Trump (TRUMP<\/a>) meme coin. And all of those SEC-led investigations into cryptocurrency-related companies (i.e., Binance<\/a> and Coinbase<\/a>)? They\u2019re disappearing. <\/p>\n Earlier this month, Trump signed<\/a> an executive order establishing a Strategic Bitcoin Reserve. The move, which designated certain digital assets like XRP, SOL, and ADA as part of a government-backed strategic reserve, has been touted by Trump and his allies as a major step toward integrating crypto into traditional finance.<\/p>\n While O\u2019Leary hails these developments as proof of a regulatory turning point, not everyone in the crypto world is convinced. <\/p>\n <\/p>\n Critics argue that Trump\u2019s newfound embrace of digital assets hurts the industry\u2019s credibility and paves the way for crony capitalism.<\/p>\n \u201cCrypto is at an existential moment,\u201d Zack Guzm\u00e1n, a crypto journalist and founder of the Web3 media company Trustless Media, warned on Jan. 18. \u201cI understand the desire to make quick money; I understand the excitement of thinking short-term; I understand stand [sic] why Trump, a man who has grifted<\/a> in every way to make money for himself would so easily win the industry. But this ain\u2019t it.\u201d<\/p>\n Only politically favored crypto firms will thrive under government protection, Guzm\u00e1n said. <\/p>\n The same day Trump decided to launch a memecoin, which skyrocketed 10,000% in value, crypto elitists dressed up in tuxedos and gowns, ready to hobnob at a gala in Washington, D.C. They were completely unaware that Official Trump would soon become a digital dumpster fire (it\u2019s currently down over 84% from its peak).<\/p>\n \u201cI\u2019m not saying Trump just used everyone in crypto by throwing a black tie event in DC while simultaneously launching a memecoin without them, but that\u2019s exactly what he did,\u201d Guzm\u00e1n wrote on Jan. 18. \u201cThis industry is his industry now, whether they are aware of it or not. Frankly, that\u2019s extremely sad.\u201d<\/p>\n After Trump launched Official Trump, Balaji Srinivasan, a cryptocurrency investor, called meme coins a \u201czero sum game.\u201d <\/p>\n \u201cThere is no wealth creation,\u201d he tweeted<\/a> the day before Trump\u2019s inauguration. \u201cEvery buy order is simply matched by a sell order. And after an initial spike, the price eventually crashes and the last buyers lose everything.\u201d<\/p>\n Crypto entrepreneur Erik Voorhees wrote<\/a> on X:<\/p>\n Trumpcoin is stupid and embarrassing. Trumpcoin is a signal of sea change in US fintech policy towards much more permissive innovation. Both are true.<\/p>\n<\/blockquote>\n SkyBridge founder and former White House Communications Director Anthony Scaramucci called it \u201cIdi Amin-level corruption\u201d, referring to the military officer whose Ugandan rule in the 1970s was defined by corruption.<\/p>\n And that Bitcoin reserve \u2014 the one David Sacks<\/a>, Trump\u2019s crypto czar, says will be filled with seized digital assets \u2014 seems far-fetched, too. Crypto analyst Dessislava Aubert told<\/a> the Agence France-Presse that the U.S. government must return seized Bitcoin to all victims identified as suffering from a hack.<\/p>\n Despite the skepticism, O\u2019Leary remains steadfast in his belief that Trump\u2019s policies will legitimize crypto in ways no previous administration has. <\/p>\n \u201cThe big news is that this will be the first administration that\u2019s going to say this sector belongs in America. The development should be here. The technology should be mastered here. We should lead the world in it,\u201d O\u2019Leary added.<\/p>\n Whether Trump\u2019s promises translate into lasting regulatory clarity\u2014or are merely political grandstanding\u2014remains an open question. For now, the crypto world watches closely, caught between hope and deep-seated doubt.<\/p>\n <\/p><\/div>\n\u2018This ain\u2019t it\u2019<\/h2>\n
\u2018Stupid and embarrassing\u2019<\/strong><\/h2>\n
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