The Curious Case of $TRUMP Coin and Access to Power
Donald Trump’s foray into the world of cryptocurrency, specifically the memecoin $TRUMP, has opened a Pandora’s Box of ethical and potentially legal questions, raising serious concerns about the blurring lines between financial gain and political influence. The promise of a private dinner with the former president for the top holders of his namesake coin has created a feeding frenzy, attracting attention from individuals and, more alarmingly, corporations looking to leverage their financial resources for political advantage.
Freight Technologies Inc., a North American shipping company, has brazenly announced its intention to acquire up to $20 million worth of $TRUMP tokens, explicitly stating its desire to influence presidential policies on tariffs. This move, detailed in a Securities and Exchange Commission (SEC) filing, involves securing financing from an institutional investor for an initial purchase of $1 million, with the option to expand the investment by an additional $19 million. The company’s CEO, Javier Selgas, openly declared that this purchase is part of Freight Technologies’ strategy to "promote productive and active commerce between the United States and Mexico."
The Trump Coin team’s announcement that the top 220 token holders would be invited to a private dinner with Trump, coupled with a VIP reception and tour for the top 25, immediately raised eyebrows. Critics argue that offering access to the former president in exchange for financial investment creates a system where wealth dictates political influence, undermining the principles of fair and equal representation. The potential for abuse is evident, with concerns that CEOs, crypto insiders, or even foreign actors could exploit this opportunity to gain undue access and sway over policy decisions.
While it might be expected that individuals would attempt to buy their way into Trump’s inner circle, Freight Technologies’ public declaration of their strategy is particularly audacious. According to the Trump Coin website’s leaderboard, a $1 million investment could indeed secure Selgas and Freight Technologies a seat at the coveted dinner.
The current top holder of $TRUMP is Justin Sun, the founder of the crypto platform TRON, which has been previously investigated by the SEC for alleged price manipulation. Sun holds approximately $1.2 million worth of $TRUMP, making him one of only two individuals with more than $400,000 in the token. This raises further questions about the types of individuals and entities being drawn to $TRUMP and the potential motivations behind their investments.
Trump, for his part, has feigned ignorance regarding his cryptocurrency’s profitability. During an appearance on NBC News’ Meet the Press, he claimed he hadn’t even looked into whether he had profited from the coin, which launched shortly before his second term bid. He vaguely stated that if he owned stock and the market went up due to his actions, he would consider it profit. This response showcases a lack of genuine understanding of the crypto space, or perhaps a deliberate attempt to distance himself from the ethical concerns surrounding $TRUMP.
However, it is crucial to note that Trump doesn’t need to actively monitor the cryptocurrency’s performance to benefit from it. Approximately 80% of all $TRUMP coins are held by two entities: CIC Digital, an affiliate of the Trump organization, and Fight Fight Fight LLC, co-owned by CIC Digital. This means that the vast majority of the tokens are effectively controlled by Trump-related entities.
Whenever there is an announcement that holding the coin could grant access to a private dinner with the former president, the price of $TRUMP invariably increases. This price surge directly benefits Trump’s companies, as the value of their holdings appreciates. Moreover, these entities also "receive trading revenue derived from trading activities," as stated on the Trump Coin website, enabling them to profit from each transaction involving the token.
This situation highlights a fundamental conflict of interest. Trump’s actions and pronouncements can directly influence the value of $TRUMP, creating a situation where he profits from his political influence. This raises questions about whether his decisions are driven by the best interests of the country or by personal financial gain.
The Freight Technologies case exemplifies the potential for abuse within this system. By investing in $TRUMP with the express purpose of influencing tariff policies, the company is attempting to bypass traditional lobbying channels and gain privileged access to the former president. This undermines the integrity of the political process and raises concerns about the undue influence of wealthy individuals and corporations.
The SEC’s filing regarding Freight Technologies’ plans will undoubtedly draw scrutiny, as regulators grapple with the implications of cryptocurrencies being used as vehicles for political influence. It remains to be seen whether the SEC will take action to prevent this type of activity or if existing regulations are sufficient to address the unique challenges posed by crypto-based political fundraising.
The entire episode underscores the inherent risks associated with mixing political power with financial incentives. While Trump has always been known for his transactional approach, the introduction of cryptocurrency into the equation has added a new layer of complexity and potential for corruption. The case of $TRUMP coin and Freight Technologies serves as a cautionary tale about the dangers of allowing wealth to buy access and influence in the political arena.
