The Trump Coin Is a Double-Edged Sword of Crypto's Own Creation

For those living under a rock, former President Donald Trump slowly realized that he could turn blockchain into yet another wedge issue

Former President Donald Trump has slowly realized that he can turn blockchain into yet another wedge issue, going through the standard crypto metamorphosis of launching an NFT one day and inviting Ryan Selkis to speak at your event the next. Panicked (or more likely, largely nonplussed), the Biden campaign has slowly dipped its toes into the waters of digital assets, with the New York Times reporting on Monday that officials have been reaching out to Coinbase and Ripple to discuss crypto policy.

Regardless of whether a question about Dogecoin will make it to the debate stage, it’s undeniable that crypto has become a force in this presidential cycle. The blockchain industry is now among the largest interest groups doling out campaign donations, with Coinbase, Ripple, and a16z forking over $75 million to the super PAC Fairshake over just the past few weeks.

Which brings us to the Trump coin. Crypto will always be a double-edged sword of its own creation. For all the lofty conversations we want to have about the role of the state in monetary systems, or how settlement and securities regulation should function, the overwhelming motivation of most people in the industry is to make obscene amounts of money, often in the most absurd way possible. It was only a matter of time before memes and scams hijacked the debate.

On Monday, the X account for Pirate Wires—a newsletter run by the ironically named Mike Solana, who is part of Peter Thiel’s venture fund—posted that Trump was launching an official token on (you guessed it) Solana, that his Gen Z son Barron was “spearheading.” Solana (the man, not the blockchain) quote-tweeted/X’d the post with a piece of journalism parlance that seemed to add credibility: “Scoop.” Predictably, a month-old memecoin with the same name on Solana soared, despite the lack of any evidence. Solana made clear that he didn’t speak with “Mr. Trump,” adding that the former president could rug-pull or pivot at any time. That didn’t deter day traders, who logged over $129 million in volume.

No media outlet—including Fox Business, which ostensibly would have the easiest access to Trump—has found any further confirmation. I texted a contact plugged into the Florida blockchain scene who told me he didn’t have any information beyond what’s on X. “I’m not sure if it’s real or not,” he said.

The situation devolved even further on Tuesday, with Martin Shkreli trying to make bets on the authenticity of the announcement with various crypto influencers. At this point, the truthfulness is beside the point—either scenario is equally embarrassing. What matters is that we have to take it seriously. And for that, we’re all losers.

Leo Schwartzleo.schwartz@fortune.com@leomschwartz

DECENTRALIZED NEWS

The conservative nonprofit group Consumers' Research has launched a multimillion-dollar ad blitz trying to brand Tether as the next FTX. (Daily Mail)

The zero-knowledge-powered protocol ZKsync promised Lens Protocol, the decentralized social media protocol launched by the found of Aave, a substantial tranche of tokens to build on its platform. (DLNews)

A cybercrime detection firm found dozens of scan websites seeking to swindle Trump supporters out of crypto. (Wired)

A broad selloff has driven Bitcoin down to a one-month low, with smaller tokens also declining. (Bloomberg)

Some Trump supporters in Texas are wary of his newfound support of Bitcoin mining, warning that it could increase demand on the power grid. (Houston Chronicle)

MEME O’ THE MOMENT

Things could only get stupider: