After calling Bitcoin a “scam”, Donald Trump has entered the cryptocurrency market, but his new statements raise questions about whether he really understands the field he is entering. The former president and his three sons have launched World Liberty Financial (WLFI), a new cryptocurrency aimed at making the United States the “crypto capital of the world.”
But his ambiguous and often baffling comments about the initiative have left people wondering whether he understands what he is advocating.
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“Cryptocurrency is one of those things we have to do,” Trump said, before veering into a rant that included references to artificial intelligence and high-tech jargon. “Whether we like it or not, I have to do it… It’s crypto, it’s AI, it’s some of the other things,” he said, leaving many listeners scratching their heads.
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This confusing rhetoric marks a sharp shift from Trump’s previous stance on digital assets. Just a few years ago, he condemned Bitcoin as a threat to the U.S. dollar and warned against its use in illegal activities. But according to his most recent financial report, since declaring his candidacy for president again, Trump has reportedly invested between $1 million and $5 million in Ethereum, in addition to accepting millions of dollars in cryptocurrency donations.
WLFI is touted as a stablecoin pegged to the US dollar, which supposedly offers a solution to the volatility plaguing other cryptocurrencies. The project has been spearheaded by Trump’s sons, Eric and Donald Trump Jr., who have positioned it as a way for ordinary Americans to take back financial power from traditional banks.
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On the other hand, critics argue that there are potentially many conflicts of interest in this venture, especially if Trump is re-elected and uses his executive power to deregulate the cryptocurrency market, which some expect him to do and which would, at the same time, benefit his family’s company.
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According to Bloomberg, the project’s key negotiator, Chase Herro, has a dubious past that includes promoting questionable products and making ethically questionable statements like “If you do this right, who cares if it goes to zero.” In a 2018 YouTube video, he boasted that he could sell “shit in a can, wrapped in urine, covered in human skin, for a billion dollars if the story is correct.”
Although Trump and his team promote WLFI as a stable financial tool, past events tell a different story. The fall of the Terra-Luna stablecoin wiped out nearly $2 trillion from the cryptocurrency market, leading to huge losses for many investors. On top of that, stablecoins have been linked to money laundering and other illegal activities, making people cautious about using them widely.
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This article ‘Well, It’s Crypto, It’s AI And Some Other Things,’ Donald Trump Says, Unsure What His New Crypto Project Is originally appeared on Benzinga.com
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