Donald Trump turns attention to cryptocurrency. What’s behind the shift?

Donald Trump, known for his outspoken views, has previously been critical of cryptocurrencies. However, his stance on digital assets has softened in recent times.

Donald Trump, renowned for his role as the former U.S. president and his outspoken nature, has also turned his attention to the cryptocurrency sector. While he has been known to voice skepticism about cryptocurrencies and blockchain technology, recent shifts indicate a more complex stance. Despite his criticisms, Trump has openly embraced non-fungible tokens (NFTs) by releasing his own collections. Moreover, he has acknowledged the growing popularity of Bitcoin (BTC).

On the other side of crypto

In 2019, Trump initially commented on Bitcoin and other cryptocurrencies, describing BTC as “based on thin air.” His criticism escalated before the 2020 presidpresidential election, highlighting their volatility and lack of intrinsic value.

During this time, Trump reiterated his belief in the dominance and stability of the U.S. dollar as the country’s primary currency, emphasizing its strength compared to digital assets.

However, following Joe Biden’s inauguration, the Trump administration’s plans to tighten cryptocurrency regulations were put on hold. Initiatives proposed by the Financial Crimes Enforcement Network (FinCEN) under Trump, aimed at regulating crypto wallets more rigorously, were paused. Meanwhile, some Democratic Party members, including U.S. House Representative Rashida Tlaib, continued advocating for stricter stablecoins regulations, sparking concerns within the cryptocurrency community.

NFT cards and luxury dinner

In early 2022, Trump launched his set of digital artworks known as POTUS TRUMP NFT, featuring ten unique digital pieces depicting Trump. This limited collection comprised a total of 10,000 NFTs.

The collection garnered significant success, with Trump potentially earning between $100,000 to $1 million from it, as indicated in his financial declaration for 2022.
Continuing his pursuit of success and profit, Trump announced another NFT collection on his social network Truth Social in April 2023. Similar to the initial collection, these new NFTs showcased stylized images of Trump, including depictions of him as a rock star and as the king of hearts on a playing card, as well as portraying him in historic scenes like George Washington crossing the Delaware River.

Users who purchased 47 NFTs could win an invitation to dine with Trump at his Mar-a-Lago resort in Florida. For those buying a minimum of 100 “digital cards,” a grand dinner with the former president and a unique Trump-themed artwork awaited.

In December 2023, Trump unveiled a fresh NFT collection dubbed the Mugshot Edition. The term “mugshot” refers to the photo taken by American police upon a citizen’s arrest. Trump decided to create a distinct collection from this photo, planning to release not just NFTs but also 2,024 physical trading cards. These cards would feature pieces of the suit Trump wore during his arrest

Trump’s new market trend

Analysts at DappRadar suggest that Donald Trump’s foray into the non-fungible token (NFT) market has set a precedent for other political figures. By using NFTs to fund his election campaigns, Trump has potentially paved the way for NFTs to become a political financing tool.

“Trump’s collections expand the realm of NFT utility, showcasing the transformative potential of revolutionizing not just art or entertainment but political campaigning as well.”

Former U.S. presidential candidates like Francis Suarez and Robert Francis Kennedy Jr. have not embraced Trump’s strategy but have expressed support for cryptocurrency technology.

Unexpected crypto-holder

In August 2023, financial disclosure documents revealed that Trump held up to $2.8 million in cryptocurrency, notably in an Ethereum wallet. This wallet likely relates to the collection of NFTs Trump launched as part of his 2024 presidential bid.

Shift in Trump’s crypto views

Recent developments suggest a shift in Donald Trump’s stance towards digital assets. In a February 2024 interview, the former President displayed a more favorable attitude towards cryptocurrencies, marking a departure from his previous rhetoric.

In January 2024, he promised that, if elected, he would “never allow” the introduction of a digital dollar. In February, in an interview with Fox News, he said regarding BTC a short “I can live with it.” While reaffirming his allegiance to the U.S. dollar, Trump acknowledged Bitcoin’s growing popularity and acceptance.

Is Trump embracing crypto?

Donald Trump has historically expressed skepticism towards cryptocurrencies, initially branding Bitcoin as fraudulent in 2019. Despite this, he has often favored traditional fiat currencies like the U.S. dollar.

Now, as Trump campaigns for the 2024 U.S. presidential election, some in the crypto community speculate that his newfound support for Bitcoin is driven by political motives to appeal to a broader voter base.

However, users on the social platform X argue that Trump cannot afford to ignore the growing influence of crypto enthusiasts.

According to analysts at Grayscale, the increasing emphasis on cryptocurrencies by U.S. presidential candidates may stem from projections indicating that Generation Z and millennials will constitute a significant portion of voters in the upcoming elections. These demographics exhibit less trust in traditional institutions and are more inclined toward emerging technologies.

Despite this shift, some view Trump’s sudden embrace of cryptocurrencies as merely strategic, aiming to capitalize on the current hype surrounding digital assets.