GD Culture Group Announces Plans to Invest $300M in President Trump's Meme Coin, Raising Foreign Influence Concerns

GD Culture Group, a Nasdaq-listed technology company with ties to China, has announced plans to acquire $300 million worth of President Donald Trump's meme coin

Nasdaq-listed technology company, Culture Group, is planning to invest $300 million in President Donald Trump’s meme coin, potentially sparking unprecedented foreign influence concerns.

The struggling tech firm, which reported zero revenue last year and only eight employees, will be using funds from an unnamed entity in the British Virgin Islands to purchase Bitcoin and $TRUMP coins, according to New York Magazine.

The company’s Chinese ties have become a central focus of concern. Culture Group, which is on the verge of bankruptcy and has no revenue to report, disclosed in financial filings that its subsidiary, Shanghai Xianzhui, may be subject to influence from the Chinese government—a statement that is typically made by Chinese firms operating with American listings.

“Make no mistake. These foreign entities and governments obviously want to curry favor with the president,” former House Ethics Committee chairman Charles Dent told Alternet. “This is completely out of bounds and raises all sorts of ethical, legal and constitutional issues that must be addressed.”

The purchase would mark the first known instance of a China-linked company acquiring Trump’s meme coin, which could have diplomatic and national security implications.

The company confirmed its investment plans in an SEC filing on Tuesday, stating: “The Company plans to use proceeds from the offering, if any, to invest in Bitcoin and OFFICIAL TRUMP and for general corporate purposes.”

The announcement comes at a politically sensitive time, with U.S.-China relations under scrutiny and increased focus on foreign influence in American politics.

Culture Group’s investment appears strategically timed to coincide with the upcoming exclusive dinner event on May 22, where President Trump will meet with the top 220 holders of his meme coin. This timing suggests the company may be seeking both financial returns and potential access to the president through the cryptocurrency purchase, according to Gizmodo.

However, the $TRUMP token has been struggling to maintain its value. The token has experienced “declining trader confidence, which has seen successive drawdowns from the weekend to $13.46″ at the time of reporting on Wednesday, according to cryptocurrency market analysis.

This performance suggests that even substantial institutional investment may not be sufficient to stabilise the meme coin’s volatile price action. Technical indicators also suggest continued bearish pressure, with analysts noting the price action shows a “negative divergence of the Relative Strength Index” and further declines below the current market rate at $13.06 are possible.

Support levels around the 50-day Exponential Moving Average at $12.20 and a demand zone near $10.00 may become critical in absorbing selling pressure in the coming weeks.

Earlier this year, a North American-based freight company announced plans to invest $500 million in $TRUMP coins, aiming to gain access to the president for assistance in securing a new trade lane.

Additionally, an unnamed British Virgin Islands entity is providing Culture Group with the funds for the Bitcoin and $TRUMP investments. This structure raises further concerns about foreign interference in American politics.

This post was originally published on May 10, 2023, and updated on May 11, 2023, to include additional details about the company’s investment plans and the British Virgin Islands entity providing the funds. It was further updated on May 17, 2023, to clarify the company’s revenue status and the timing of the investment announcement.