Trump's 1 USD stablecoin had a difficult start, and beyond the commercial failure, it is the redistribution mechanics around USD1 and the TRUMP token that fuel the anger. World Liberty reverts 75% of its profits to family entities. The $TRUMP token, promoted through VIP contests that include a dinner with the current president, has generated over 5.2 billion dollars in profits captured by a few key wallets.
On the other hand, hundreds of thousands of investors have lost billions. According to analyst Adam Morgan McCarthy from Kaiko, "it failed to make the leap from staging platforms to centralized places catering to the mass market."
USD1 seems to serve more the interests of a clan than to solve a real problem. Contrary to the spirit of bitcoin, this crypto reinforces the interdependence of the elites, transforming a tool of emancipation into a mechanism of prestige and closed accumulation.
A symbol of a crypto-populism disconnected from market realities, USD1 also embodies a democratic drift. Donald Trump, political promoter of the crypto, is also a judge and party with his family controlling the issuing entity. An explosive mix, between economic failure and suspicions of presidential enrichment. Does this new Trump coin threaten American democracy?