President Donald Trump is expected to host two cryptocurrency-related parties this month, including a gala for the largest holders of the meme coin $TRUMP on May 22, amid lawmakers' concerns about conflicts of interest. Is this a smart strategy or paving the way for controversy? Let's analyze in detail.
Trump's Two Crypto Parties
Last Monday, #TRUMP attended the 'Crypto & AI Innovators Dinner' at a cost of $1.5 million per seat at Trump National Golf Club, Virginia, hosted by the super PAC MAGA Inc., featuring participation from 'former crypto czar' David Sacks. The event was quiet with the press. On the same day, he confirmed the gala on May 22 at Trump National Club for the top 220 $TRUMP holders, of which the top 25 ranked individuals are promised a White House tour and VIP treatment.
Participation Mechanism for $TRUMP Gala
Entry rights to the gala (black tie optional) depend on the amount of $TRUMP in the wallet, with live rankings on the project's website, closing on May 12. Users can publicly disclose their names, but most wallets are anonymous. This has caused controversy, especially as the price of $TRUMP has risen over 50% after the gala news, currently trading at a high (according to CoinGecko), despite the terms stating Trump is uncertain about attending and the event could be canceled 'for any reason.' If canceled, winners will receive a Trump-branded NFT.
Ethical Controversies and Self-Interest
Lawmakers, led by Senator Elizabeth Warren (D-Mass.) and Representative Adam Schiff (D-Calif.), accuse Trump of selling political access to wealthy crypto investors. Last month, they sent a letter warning that the $TRUMP gala grants 'exclusive access to the president in exchange for significant investments in his business.' Warren also criticized the stablecoin USD1 - issued by #WorldLibertyFinancial (a company co-founded by Eric Trump’s son and investor Zach Witkoff), which is backed by short-term U.S. Treasury bonds - skyrocketing to become the 7th largest stablecoin in the world after a $2 billion investment from MGX Group (Abu Dhabi) on Binance. She called this a 'sign of corruption' and expressed concern that the Trump family could profit personally as the stablecoin regulation bill (expected to vote this week) could 'legalize exploitative behavior.'
The oversight group Accountable.US calls the $TRUMP ranking party 'the most blatant corruption scheme in U.S. presidential history,' suspecting anonymous wallets may be controlled by foreigners, such as Justin Sun (founder of Tron), who is believed to be the largest holder, while 80% of the supply belongs to Trump's allies. The White House has not responded immediately.
Impact on the Crypto Market
This event brings many signals:
Short-term price increase: $TRUMP rises 50% after gala news, reflecting the appeal of the Trump brand, similar to Bitcoin ($94,000) benefiting from friendly policies.
Legal pressure: Warren's call for an investigation could slow the progress of altcoin ETFs (such as $BNB , Solana) and stablecoin legislation.
Promoting meme coins: The event could encourage projects like Dogecoin, although the risk of high volatility remains.
Future Prospects
Despite being controversial, Trump's crypto parties could strengthen his position in the industry, especially as fund inflows reached $3.4 billion last week and Bitcoin ETFs attracted $1.8 billion. If ethical barriers are overcome, this strategy could shape crypto trends in the next 2-3 years.
Conclusion: Will Trump Change Crypto with the Party?
Trump hosts two crypto parties, including the $TRUMP gala on May 22, attracting large holders but facing corruption accusations from Warren and Accountable.US. Although the price of $TRUMP increased by 50%, legal and ethical risks remain. However, with a vibrant market, this could be a strategic long-term move. Investors need to closely monitor to assess risks and opportunities.
Risk warning: Crypto investment carries high risks due to price volatility and legal uncertainty. Please consider carefully before participating.