Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 7 days ago

Newsletter: Crypto firms hope putting a blockchain veneer on traditional equities will allow them to sidestep lessons learned in the 1929 Wall Street crash, crypto firms look to become banks, and Congress celebrates crypto surveillance while claiming to outlaw it

https://www.citationneeded.news/issue-88/

#crypto #cryptocurrency#USpol#USpolitics
M1ke
@m1ke@phpc.social  ·  activity timestamp 6 days ago
@molly0xfff it took me a while to grasp that the fever around Blockchain is people realising they can do all the old scams again without running into the laws and regulations put in place to prevent them after people ran them the first time. I guess we'd see the same thing if someone found there's a thing called murrdderr and the government forgot to make it illegal yet
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 7 days ago

By encasing stocks in a blockchainy wrapper, companies like Robinhood are hoping to tap into lucrative equities markets while sidestepping the expensive compliance and oversight requirements of traditional American brokerages and exchanges.

#crypto #cryptocurrency#USpol#USpolitics

Money Stuff’s Matt Levine put it well in his must-read newsletter on the topic when he wrote: The “legal friction” [Robinhood mentions] is that some companies are private because they do not want to comply with securities disclosure rules, and tokenization’s solution is that they can sell stock to the public without complying with those rules. ... Saying “we should get rid of the disclosure rules” sounds bad, retrograde, greedy. Saying “tokenization” sounds good, modern, cool. Crypto companies already barreling forward with blockchainified stocks have hit some resistance from someone they may not have expected: SEC Commissioner Hester Peirce, who has otherwise been such a staunch ally of the crypto industry that she earned (and embraced) the moniker “Crypto Mom”. On July 9, she cautioned, “As powerful as blockchain technology is, it does not have magical abilities to transform the nature of the underlying asset. Tokenized securities are still securities.”4 While this is temporarily reassuring, bills like the CLARITY Act, currently making their way through Congress, threaten to undermine the SEC in this area. In a July 9 Senate Banking Committee hearing, former CFTC Chairman Timothy Massad agreed with Ranking Member Elizabeth Warren that the bill “could undermine [the SEC’s] authority substantially”, effectively turning blockchains into the regulatory escape hatch the industry desires.5
Money Stuff’s Matt Levine put it well in his must-read newsletter on the topic when he wrote: The “legal friction” [Robinhood mentions] is that some companies are private because they do not want to comply with securities disclosure rules, and tokenization’s solution is that they can sell stock to the public without complying with those rules. ... Saying “we should get rid of the disclosure rules” sounds bad, retrograde, greedy. Saying “tokenization” sounds good, modern, cool. Crypto companies already barreling forward with blockchainified stocks have hit some resistance from someone they may not have expected: SEC Commissioner Hester Peirce, who has otherwise been such a staunch ally of the crypto industry that she earned (and embraced) the moniker “Crypto Mom”. On July 9, she cautioned, “As powerful as blockchain technology is, it does not have magical abilities to transform the nature of the underlying asset. Tokenized securities are still securities.”4 While this is temporarily reassuring, bills like the CLARITY Act, currently making their way through Congress, threaten to undermine the SEC in this area. In a July 9 Senate Banking Committee hearing, former CFTC Chairman Timothy Massad agreed with Ranking Member Elizabeth Warren that the bill “could undermine [the SEC’s] authority substantially”, effectively turning blockchains into the regulatory escape hatch the industry desires.5
Money Stuff’s Matt Levine put it well in his must-read newsletter on the topic when he wrote: The “legal friction” [Robinhood mentions] is that some companies are private because they do not want to comply with securities disclosure rules, and tokenization’s solution is that they can sell stock to the public without complying with those rules. ... Saying “we should get rid of the disclosure rules” sounds bad, retrograde, greedy. Saying “tokenization” sounds good, modern, cool. Crypto companies already barreling forward with blockchainified stocks have hit some resistance from someone they may not have expected: SEC Commissioner Hester Peirce, who has otherwise been such a staunch ally of the crypto industry that she earned (and embraced) the moniker “Crypto Mom”. On July 9, she cautioned, “As powerful as blockchain technology is, it does not have magical abilities to transform the nature of the underlying asset. Tokenized securities are still securities.”4 While this is temporarily reassuring, bills like the CLARITY Act, currently making their way through Congress, threaten to undermine the SEC in this area. In a July 9 Senate Banking Committee hearing, former CFTC Chairman Timothy Massad agreed with Ranking Member Elizabeth Warren that the bill “could undermine [the SEC’s] authority substantially”, effectively turning blockchains into the regulatory escape hatch the industry desires.5
These companies don’t usually admit that, by encasing stocks in a blockchainy wrapper, they hope to tap into lucrative equities markets while sidestepping the expensive compliance and oversight requirements of traditional American brokerages and exchanges. This fits the long history of companies trying to use blockchains as a magic get-out-of-regulation-free wand, reminiscent of the 2017 bubble when companies used “initial coin offerings” (ICOs) to try to sidestep IPO regulations.d Indeed, Robinhood has been heavily lobbying for “a new regulatory approach [that’s] needed to allow tokenization to flourish” and not “stifle growth and innovation”.1 Regular readers of this newsletter will recognize this language as the standard rhetoric of a crypto company asking for carveouts and exemptions from regulations we collectively learned are necessary, oh, about a century ago — when a speculative bubble emerged around stocks sold to the public based on false or incomplete information and we wound up in the Great Depression. Some companies have gone even further, tokenizing shares in private companies. When Robinhood announced its tokenized equities offering (only available to European investors at the moment while the company works on lobbying US lawmakers and regulators), they also announced that they had tokenized shares in the private companies SpaceX and OpenAI. This prompted concerns from European regulators and OpenAI themselves, who tweeted: “These ‘OpenAI tokens’ are
These companies don’t usually admit that, by encasing stocks in a blockchainy wrapper, they hope to tap into lucrative equities markets while sidestepping the expensive compliance and oversight requirements of traditional American brokerages and exchanges. This fits the long history of companies trying to use blockchains as a magic get-out-of-regulation-free wand, reminiscent of the 2017 bubble when companies used “initial coin offerings” (ICOs) to try to sidestep IPO regulations.d Indeed, Robinhood has been heavily lobbying for “a new regulatory approach [that’s] needed to allow tokenization to flourish” and not “stifle growth and innovation”.1 Regular readers of this newsletter will recognize this language as the standard rhetoric of a crypto company asking for carveouts and exemptions from regulations we collectively learned are necessary, oh, about a century ago — when a speculative bubble emerged around stocks sold to the public based on false or incomplete information and we wound up in the Great Depression. Some companies have gone even further, tokenizing shares in private companies. When Robinhood announced its tokenized equities offering (only available to European investors at the moment while the company works on lobbying US lawmakers and regulators), they also announced that they had tokenized shares in the private companies SpaceX and OpenAI. This prompted concerns from European regulators and OpenAI themselves, who tweeted: “These ‘OpenAI tokens’ are
These companies don’t usually admit that, by encasing stocks in a blockchainy wrapper, they hope to tap into lucrative equities markets while sidestepping the expensive compliance and oversight requirements of traditional American brokerages and exchanges. This fits the long history of companies trying to use blockchains as a magic get-out-of-regulation-free wand, reminiscent of the 2017 bubble when companies used “initial coin offerings” (ICOs) to try to sidestep IPO regulations.d Indeed, Robinhood has been heavily lobbying for “a new regulatory approach [that’s] needed to allow tokenization to flourish” and not “stifle growth and innovation”.1 Regular readers of this newsletter will recognize this language as the standard rhetoric of a crypto company asking for carveouts and exemptions from regulations we collectively learned are necessary, oh, about a century ago — when a speculative bubble emerged around stocks sold to the public based on false or incomplete information and we wound up in the Great Depression. Some companies have gone even further, tokenizing shares in private companies. When Robinhood announced its tokenized equities offering (only available to European investors at the moment while the company works on lobbying US lawmakers and regulators), they also announced that they had tokenized shares in the private companies SpaceX and OpenAI. This prompted concerns from European regulators and OpenAI themselves, who tweeted: “These ‘OpenAI tokens’ are
The crypto world has two recent buzzwords: “tokenization” and “real-world assets” (RWAs).a Gone are the days when crypto evangelists dreamed of tearing down traditional financial institutions altogether. Now, crypto firms seem intent on replicating the financial system, minus regulations that might safeguard consumers or economic stability. Next in their sights? Stock exchanges. a. Crypto’s use of “real-world assets” to describe traditional stocks is amusing to me — the unspoken corollary being that blockchain-native assets might best be called “imaginary”. Prominent crypto firms such as Robinhood, Republic, Coinbase, and Kraken are rapidly moving towards “tokenizing” traditional stocks, and pressuring regulators to allow it. Instead of buying your shares of publicly traded firms via a brokerage account that places orders on the NYSE or Nasdaq, you would use a crypto trading app to purchase a token representing a share.b Companies hoping to develop such platforms usually promote the idea by saying that a blockchainified stock market would expand trading hours,c and would be more accessible to international investors who didn’t want to go through the somewhat onerous process of opening an American brokerage account. b. Whether these representations actually involve the companies issuing the tokens holding 1-1 shares of the stock to back their stock tokens, or would instead essentially be a naked option, is a concerning and unanswered question.
The crypto world has two recent buzzwords: “tokenization” and “real-world assets” (RWAs).a Gone are the days when crypto evangelists dreamed of tearing down traditional financial institutions altogether. Now, crypto firms seem intent on replicating the financial system, minus regulations that might safeguard consumers or economic stability. Next in their sights? Stock exchanges. a. Crypto’s use of “real-world assets” to describe traditional stocks is amusing to me — the unspoken corollary being that blockchain-native assets might best be called “imaginary”. Prominent crypto firms such as Robinhood, Republic, Coinbase, and Kraken are rapidly moving towards “tokenizing” traditional stocks, and pressuring regulators to allow it. Instead of buying your shares of publicly traded firms via a brokerage account that places orders on the NYSE or Nasdaq, you would use a crypto trading app to purchase a token representing a share.b Companies hoping to develop such platforms usually promote the idea by saying that a blockchainified stock market would expand trading hours,c and would be more accessible to international investors who didn’t want to go through the somewhat onerous process of opening an American brokerage account. b. Whether these representations actually involve the companies issuing the tokens holding 1-1 shares of the stock to back their stock tokens, or would instead essentially be a naked option, is a concerning and unanswered question.
The crypto world has two recent buzzwords: “tokenization” and “real-world assets” (RWAs).a Gone are the days when crypto evangelists dreamed of tearing down traditional financial institutions altogether. Now, crypto firms seem intent on replicating the financial system, minus regulations that might safeguard consumers or economic stability. Next in their sights? Stock exchanges. a. Crypto’s use of “real-world assets” to describe traditional stocks is amusing to me — the unspoken corollary being that blockchain-native assets might best be called “imaginary”. Prominent crypto firms such as Robinhood, Republic, Coinbase, and Kraken are rapidly moving towards “tokenizing” traditional stocks, and pressuring regulators to allow it. Instead of buying your shares of publicly traded firms via a brokerage account that places orders on the NYSE or Nasdaq, you would use a crypto trading app to purchase a token representing a share.b Companies hoping to develop such platforms usually promote the idea by saying that a blockchainified stock market would expand trading hours,c and would be more accessible to international investors who didn’t want to go through the somewhat onerous process of opening an American brokerage account. b. Whether these representations actually involve the companies issuing the tokens holding 1-1 shares of the stock to back their stock tokens, or would instead essentially be a naked option, is a concerning and unanswered question.
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 7 days ago

Experts are issuing dire warnings on bills that would allow for activity like this. Professor Richard Painter implored: “We do not want another economic collapse caused by deregulation of financial services sector. ... Please, we don't want to go through those experiences again.”

#crypto #cryptocurrency#USpol#USpolitics

The risk is that we repeat the experience of regulating the banks in the 1920s and the depression that followed 10 years of depression. The risk is that we repeat what happened in 2008 when campaign contributions poured into Congress from the securities-based swap industry elsewhere in the financial services industry and we had decades of deregulation. The economy collapsed. Millions of American families losing their homes, people unemployed. We've been through this again and again and this Congress needs to get it right this time and carefully read this bill and listen to witnesses including the witnesses who might disagree and instead of the personal attacks that I've experienced today some dignity from this Senate care in drafting this bill and thinking about the American people you represent. We do not want another economic collapse caused by deregulation of financial services sector. And I want to ask you all, do you understand the bill? Have you listened to all sides? And are you willing to allow the regulators to use their expertise to watch what's going on in the sector as Chairman Massad has suggested that you should? Please, we don't want to go through those experiences again.
The risk is that we repeat the experience of regulating the banks in the 1920s and the depression that followed 10 years of depression. The risk is that we repeat what happened in 2008 when campaign contributions poured into Congress from the securities-based swap industry elsewhere in the financial services industry and we had decades of deregulation. The economy collapsed. Millions of American families losing their homes, people unemployed. We've been through this again and again and this Congress needs to get it right this time and carefully read this bill and listen to witnesses including the witnesses who might disagree and instead of the personal attacks that I've experienced today some dignity from this Senate care in drafting this bill and thinking about the American people you represent. We do not want another economic collapse caused by deregulation of financial services sector. And I want to ask you all, do you understand the bill? Have you listened to all sides? And are you willing to allow the regulators to use their expertise to watch what's going on in the sector as Chairman Massad has suggested that you should? Please, we don't want to go through those experiences again.
0xdeadbeef90
@0xdeadbeef90@ioc.exchange  ·  activity timestamp 3 days ago
@molly0xfff Haha, deregulation is not the cause of economic collapses. People making that statement don't understand basic economics and what actually causes the booms and busts of the markets.

Of course Painter isn't an economist by trade or education, so perhaps he can be excused, but it's true of most Phd economists, basically all the misinformed Keynesian economist.
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 7 days ago

Two Republicans took time at the hearing to attack legislators and witnesses for so much as mentioning the influence of the crypto lobby, or Trump’s personal crypto ventures. They don’t want people even mentioning crypto's hundreds of millions of dollars in spending on Congress.

#crypto #cryptocurrency#USpol#USpolitics

If Kennedy thinks accepting crypto money makes one a crook, well, perhaps he should do something about that. (Kennedy himself accepted almost $40,000 in 2024, all from Cumberland DRW’s Donald Wilson. This relatively low amount compared to other crypto-backed Congresspeople is likely because Kennedy was not up for re-election in 2024.) Evidently angered by Painter’s refusal to take the bait and his requests that they actually discuss the proposed bill instead of wasting time mischaracterizing tweets, Kennedy lashed out: “You’re a whackjob. You are a major league, next-level whackjob.” At the end of the hearing, Chairman Tim Scott proclaimed, “I hope we all remember very clearly that our words are containers of power”, going on not to rebuke the Senator for attacking a witness as a “major league, next-level whackjob” but instead those who “weaponize[d words] against Senator Gillibrand or President Trump”. (Notably, Painter did not bring up Gillibrand; it was Kennedy who printed out Painter’s tweet to read at the hearing.)
If Kennedy thinks accepting crypto money makes one a crook, well, perhaps he should do something about that. (Kennedy himself accepted almost $40,000 in 2024, all from Cumberland DRW’s Donald Wilson. This relatively low amount compared to other crypto-backed Congresspeople is likely because Kennedy was not up for re-election in 2024.) Evidently angered by Painter’s refusal to take the bait and his requests that they actually discuss the proposed bill instead of wasting time mischaracterizing tweets, Kennedy lashed out: “You’re a whackjob. You are a major league, next-level whackjob.” At the end of the hearing, Chairman Tim Scott proclaimed, “I hope we all remember very clearly that our words are containers of power”, going on not to rebuke the Senator for attacking a witness as a “major league, next-level whackjob” but instead those who “weaponize[d words] against Senator Gillibrand or President Trump”. (Notably, Painter did not bring up Gillibrand; it was Kennedy who printed out Painter’s tweet to read at the hearing.)
If Kennedy thinks accepting crypto money makes one a crook, well, perhaps he should do something about that. (Kennedy himself accepted almost $40,000 in 2024, all from Cumberland DRW’s Donald Wilson. This relatively low amount compared to other crypto-backed Congresspeople is likely because Kennedy was not up for re-election in 2024.) Evidently angered by Painter’s refusal to take the bait and his requests that they actually discuss the proposed bill instead of wasting time mischaracterizing tweets, Kennedy lashed out: “You’re a whackjob. You are a major league, next-level whackjob.” At the end of the hearing, Chairman Tim Scott proclaimed, “I hope we all remember very clearly that our words are containers of power”, going on not to rebuke the Senator for attacking a witness as a “major league, next-level whackjob” but instead those who “weaponize[d words] against Senator Gillibrand or President Trump”. (Notably, Painter did not bring up Gillibrand; it was Kennedy who printed out Painter’s tweet to read at the hearing.)
Kennedy was kind enough to read the tweet aloud, serving to both clarify that Painter never described her as such, and ensure that the official record now reflects Painter’s perfectly accurate tweet: Tweet by Richard Painter: The crypto industry is buying Congress, and the White House. This won’t end well. Senator Gillibrand’s Role in Stablecoin Regulation – $217,000 in Crypto Donations
Kennedy was kind enough to read the tweet aloud, serving to both clarify that Painter never described her as such, and ensure that the official record now reflects Painter’s perfectly accurate tweet: Tweet by Richard Painter: The crypto industry is buying Congress, and the White House. This won’t end well. Senator Gillibrand’s Role in Stablecoin Regulation – $217,000 in Crypto Donations
Kennedy was kind enough to read the tweet aloud, serving to both clarify that Painter never described her as such, and ensure that the official record now reflects Painter’s perfectly accurate tweet: Tweet by Richard Painter: The crypto industry is buying Congress, and the White House. This won’t end well. Senator Gillibrand’s Role in Stablecoin Regulation – $217,000 in Crypto Donations
Republican Senators spent considerable time during the hearing chastising witnesses and fellow legislators alike for daring to mention the crypto lobby’s influence. Senator Kennedy (R-LA) spent about half of his allotted time demanding that Professor Painter apologize to Senator Gillibrand (D-NY), claiming he called her a “crook” on Twitter back in May.
Republican Senators spent considerable time during the hearing chastising witnesses and fellow legislators alike for daring to mention the crypto lobby’s influence. Senator Kennedy (R-LA) spent about half of his allotted time demanding that Professor Painter apologize to Senator Gillibrand (D-NY), claiming he called her a “crook” on Twitter back in May.
Republican Senators spent considerable time during the hearing chastising witnesses and fellow legislators alike for daring to mention the crypto lobby’s influence. Senator Kennedy (R-LA) spent about half of his allotted time demanding that Professor Painter apologize to Senator Gillibrand (D-NY), claiming he called her a “crook” on Twitter back in May.
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 7 days ago

During “Crypto Week”, Congress will also be considering an Anti-CBDC Surveillance State Act. While Republicans decry purely hypothetical CBDC surveillance, they celebrated crypto’s actual surveillance capabilities at the recent Senate hearing.

#crypto #cryptocurrency#USpol#USpolitics

Anti-CBDC bill The rather alarmist-named Anti-CBDC Surveillance State Act exemplifies the peculiar Republican stance on digital currency surveillance. They’ve somehow convinced themselves that Federal Reserve banks are poised to launch a CBDC (central bank digital currency) that would enable mass surveillancee — though no such plan has been seriously proposed. Somehow, preventing this imaginary threat takes priority over addressing things like the president’s own stablecoin, which has already given him the types of surveillance and control powers they fear in CBDCs. Indeed, those concerns have mostly come from the Democratic wing of Congress, and have been brushed off by Republicans who are largely terrified to criticize anything Trump does. And while Republicans decry purely hypothetical CBDC surveillance, they celebrated crypto’s actual surveillance capabilities at the recent Senate hearing, where Senators and crypto executives alike delighted in how blockchains’ public ledgers ease tracing by law enforcement and, frankly, anyone else. Conveniently, recording all transactions publicly means law enforcement no longer needs to obtain a pesky subpoena to peek in on your financial activities! Senator Tim Scott (R-SC): [C]rypto companies are helping law enforcement track illicit activity with greater precision than traditional finance allows. ... Blockchain technology creates a permanent traceable ledger that can help law enforcement catch those bad actors.
Anti-CBDC bill The rather alarmist-named Anti-CBDC Surveillance State Act exemplifies the peculiar Republican stance on digital currency surveillance. They’ve somehow convinced themselves that Federal Reserve banks are poised to launch a CBDC (central bank digital currency) that would enable mass surveillancee — though no such plan has been seriously proposed. Somehow, preventing this imaginary threat takes priority over addressing things like the president’s own stablecoin, which has already given him the types of surveillance and control powers they fear in CBDCs. Indeed, those concerns have mostly come from the Democratic wing of Congress, and have been brushed off by Republicans who are largely terrified to criticize anything Trump does. And while Republicans decry purely hypothetical CBDC surveillance, they celebrated crypto’s actual surveillance capabilities at the recent Senate hearing, where Senators and crypto executives alike delighted in how blockchains’ public ledgers ease tracing by law enforcement and, frankly, anyone else. Conveniently, recording all transactions publicly means law enforcement no longer needs to obtain a pesky subpoena to peek in on your financial activities! Senator Tim Scott (R-SC): [C]rypto companies are helping law enforcement track illicit activity with greater precision than traditional finance allows. ... Blockchain technology creates a permanent traceable ledger that can help law enforcement catch those bad actors.
Anti-CBDC bill The rather alarmist-named Anti-CBDC Surveillance State Act exemplifies the peculiar Republican stance on digital currency surveillance. They’ve somehow convinced themselves that Federal Reserve banks are poised to launch a CBDC (central bank digital currency) that would enable mass surveillancee — though no such plan has been seriously proposed. Somehow, preventing this imaginary threat takes priority over addressing things like the president’s own stablecoin, which has already given him the types of surveillance and control powers they fear in CBDCs. Indeed, those concerns have mostly come from the Democratic wing of Congress, and have been brushed off by Republicans who are largely terrified to criticize anything Trump does. And while Republicans decry purely hypothetical CBDC surveillance, they celebrated crypto’s actual surveillance capabilities at the recent Senate hearing, where Senators and crypto executives alike delighted in how blockchains’ public ledgers ease tracing by law enforcement and, frankly, anyone else. Conveniently, recording all transactions publicly means law enforcement no longer needs to obtain a pesky subpoena to peek in on your financial activities! Senator Tim Scott (R-SC): [C]rypto companies are helping law enforcement track illicit activity with greater precision than traditional finance allows. ... Blockchain technology creates a permanent traceable ledger that can help law enforcement catch those bad actors.
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 7 days ago

Shady crypto billionaire Justin Sun is looking to pour another $100 million into Trump’s crypto projects. At least $56 million of Sun’s money has gone directly to Trump or family members; that number could nearly triple depending on details of the planned token purchase.

#crypto #cryptocurrency#USpol#USpolitics

Meanwhile, shady crypto billionaire Justin Sun apparently doesn’t want to be outdone by Aqua 1, and has pledged to spend another $100 million, this time on the Trump memecoin, to secure the spot of Trump’s number one benefactor bestie.11 Adding to his $75 million of WLFI tokens, and the around $38 million he or his company already spent on the Trump memecoin, this would put the total amount of Sun’s Trump-related token purchases at roughly $213 million. Most Trump memecoin buyers are not buying directly from Trump-affiliated entities, but on the secondary market, meaning that while Trump entities may earn some profit from trading fees, they’re not profiting directly from the token sale. However, the timing of Sun’s announcement — a little over a week before the first tranche of memecoins held by Trump-affiliated entities are due to unlock for sale — means that it’s possible Sun plans to purchase the tokens directly from one of those entities. So far, at least $56 million of Sun’s money has gone directly to Trump himself (via his trust) or Trump family members;f that number could nearly triple if they are the ones selling him the tokens. f. 75% of WLFI token sales go to a company called DT Marks Defi LLC, which is 70% owned by entities owned by the Donald J. Trump Revocable Trust, and 30% owned by “certain family members of Donald J. Trump”. 75% of Sun’s $75 million purchase is $56.25 million.
Meanwhile, shady crypto billionaire Justin Sun apparently doesn’t want to be outdone by Aqua 1, and has pledged to spend another $100 million, this time on the Trump memecoin, to secure the spot of Trump’s number one benefactor bestie.11 Adding to his $75 million of WLFI tokens, and the around $38 million he or his company already spent on the Trump memecoin, this would put the total amount of Sun’s Trump-related token purchases at roughly $213 million. Most Trump memecoin buyers are not buying directly from Trump-affiliated entities, but on the secondary market, meaning that while Trump entities may earn some profit from trading fees, they’re not profiting directly from the token sale. However, the timing of Sun’s announcement — a little over a week before the first tranche of memecoins held by Trump-affiliated entities are due to unlock for sale — means that it’s possible Sun plans to purchase the tokens directly from one of those entities. So far, at least $56 million of Sun’s money has gone directly to Trump himself (via his trust) or Trump family members;f that number could nearly triple if they are the ones selling him the tokens. f. 75% of WLFI token sales go to a company called DT Marks Defi LLC, which is 70% owned by entities owned by the Donald J. Trump Revocable Trust, and 30% owned by “certain family members of Donald J. Trump”. 75% of Sun’s $75 million purchase is $56.25 million.
Meanwhile, shady crypto billionaire Justin Sun apparently doesn’t want to be outdone by Aqua 1, and has pledged to spend another $100 million, this time on the Trump memecoin, to secure the spot of Trump’s number one benefactor bestie.11 Adding to his $75 million of WLFI tokens, and the around $38 million he or his company already spent on the Trump memecoin, this would put the total amount of Sun’s Trump-related token purchases at roughly $213 million. Most Trump memecoin buyers are not buying directly from Trump-affiliated entities, but on the secondary market, meaning that while Trump entities may earn some profit from trading fees, they’re not profiting directly from the token sale. However, the timing of Sun’s announcement — a little over a week before the first tranche of memecoins held by Trump-affiliated entities are due to unlock for sale — means that it’s possible Sun plans to purchase the tokens directly from one of those entities. So far, at least $56 million of Sun’s money has gone directly to Trump himself (via his trust) or Trump family members;f that number could nearly triple if they are the ones selling him the tokens. f. 75% of WLFI token sales go to a company called DT Marks Defi LLC, which is 70% owned by entities owned by the Donald J. Trump Revocable Trust, and 30% owned by “certain family members of Donald J. Trump”. 75% of Sun’s $75 million purchase is $56.25 million.
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 7 days ago

I wrote in November that “If Trump succeeds with his plans to defang the SEC, I expect [WLFI token sale] limitations to swiftly change — likely significantly financially benefiting Trump and his family”.

Guess what?

#crypto #cryptocurrency#USpol#USpolitics

As I wrote in November, shortly after Trump’s World Liberty Financial opened its WLFI token sale: [The token has] strict limitations around token resale and remuneration to token holders, and availability only to accredited investors — limitations which were rather obviously crafted to try to dodge securities enforcement. If Trump succeeds with his plans to defang the SEC, I expect these limitations to swiftly change — likely significantly financially benefiting Trump and his family, who receive 75% of net protocol revenues in addition to their initial allocation of 22.5 billion $WLFI tokens. Well, wouldn’t you know it, the team behind World Liberty has just proposed lifting the restrictions to allow WLFI to be resold.12 As with many other crypto businesses lately, they haven’t even bothered to wait for crypto legislation to pass in Congress, and are instead relying on the paralyzed SEC not to enforce existing law.
As I wrote in November, shortly after Trump’s World Liberty Financial opened its WLFI token sale: [The token has] strict limitations around token resale and remuneration to token holders, and availability only to accredited investors — limitations which were rather obviously crafted to try to dodge securities enforcement. If Trump succeeds with his plans to defang the SEC, I expect these limitations to swiftly change — likely significantly financially benefiting Trump and his family, who receive 75% of net protocol revenues in addition to their initial allocation of 22.5 billion $WLFI tokens. Well, wouldn’t you know it, the team behind World Liberty has just proposed lifting the restrictions to allow WLFI to be resold.12 As with many other crypto businesses lately, they haven’t even bothered to wait for crypto legislation to pass in Congress, and are instead relying on the paralyzed SEC not to enforce existing law.
As I wrote in November, shortly after Trump’s World Liberty Financial opened its WLFI token sale: [The token has] strict limitations around token resale and remuneration to token holders, and availability only to accredited investors — limitations which were rather obviously crafted to try to dodge securities enforcement. If Trump succeeds with his plans to defang the SEC, I expect these limitations to swiftly change — likely significantly financially benefiting Trump and his family, who receive 75% of net protocol revenues in addition to their initial allocation of 22.5 billion $WLFI tokens. Well, wouldn’t you know it, the team behind World Liberty has just proposed lifting the restrictions to allow WLFI to be resold.12 As with many other crypto businesses lately, they haven’t even bothered to wait for crypto legislation to pass in Congress, and are instead relying on the paralyzed SEC not to enforce existing law.
1 more replies (not shown)