Donald Trump, the former, current and likely future U.S. president is once again dominating the national political conversation. This time, he’s shaking things up in the crypto and NFT space. His latest venture involves offering exclusive rewards, including a dinner with himself, to top holders of a Trump-sponsored cryptocurrency called $TRUMP. Since its inception, this initiative has created a lot of excitement and income. At the same time, it has triggered greater scrutiny over possible ethical issues, price manipulation, and political ramifications. In this piece we’ll explore the wonky details of Trump’s crypto dinner. We’ll unpack the promised benefits, ethical implications, and claims of political wrongdoing related to this novel crypto experiment.

Trump's NFT Endeavors: A Lucrative Venture

Looking back, we can see how successful Trump’s entry into the NFT space has been. With each collection of NFTs worth millions of dollars, his collections have clearly shown a tremendous demand from his fans and crypto fanatics. The first 2022 drop sold out in just 17 minutes—taking home $4.5 million—while its subsequent drops were gone in seconds each. The digital trading cards run $99 a pop. Ironically, when you go on their site, you’re greeted by all sorts of junk like this… He’ll save the day! Crypto President! The popularity of these collections speaks for themselves, with previous drops bringing in an average of over $4 million in revenue per drop.

To make this even more appealing, Trump has dangled some really cool carrots for NFT buyers. You might find yourself at his Mar-a-Lago resort for an exclusive dinner and cocktails with the man himself. Best of all, you might be walking away in a fresh pair of his limited-edition golden sneakers! It’s this unique combination — digital collectibles combined with real-world experiences — that forms an incredibly dynamic force. This powerful combination has been hugely effective at increasing sales and engagement in the Trump NFT ecosystem. This past week, Trump announced a fourth wave of digital trading cards. This move shows his continued attempts to reach out to crypto-friendly voters as the November election approaches.

The $TRUMP Dinner Contest: Rewarding Crypto Investors

The former president’s debut cryptocurrency contest crosses a line between politics and crypto. He’s auctioning off a private dinner with himself to the top $TRUMP cryptocurrency holders. Time-weighted contributions from the top 220 individual wallets that hold $TRUMP guaranteed each of these wallets, weighted by time and amount, an invitation to have dinner with Trump. This contest was clearly intended to create an incentive to invest in the $TRUMP token and reward early, loyal supporters.

The contest winners weren’t taken just anywhere for a fancy dinner. The top 25 finishers received “VIP” status, with additional perks, including a private reception and behind-the-scenes access. Besides the dinner at Trump National Golf Club in Washington D.C., the driving VIPs received a private tour. They’d never received such a privileged experience as a matter of course. The tiered reward system gives the contest an aura of exclusivity and prestige. This further incentivizes players to earn and stake $TRUMP tokens with greater zeal. In order to qualify, participants had to possess at least the stated minimum number of $TRUMP tokens during the contest period. In fact, some of the top holders apparently spent millions to reach the top of that leaderboard.

Ethical Concerns and Price Manipulation

If the Trump crypto initiative has created palpable excitement, it has raised serious ethical red flags. One of the biggest concerns is the ability to manipulate the price. The contest is giving out prizes in USDC to top holders of the $TRUMP token. This would encourage people to try and manipulate the crypto’s price to guarantee themselves a private dinner with Trump. All of this would seem to undermine the integrity and fairness of the market itself.

The absence of regulatory oversight in the crypto market only adds to these fears. Without adequate oversight, including monitoring and enforcement, no rule is effective at stopping or punishing predatory, exploitative, or manipulative practices. Unwitting investors could be duped into purchasing $TRUMP tokens at highly inflated prices. When the price inevitably corrects, they will find themselves on the wrong side of that trade holding massive losses.

  • Price fixing: Companies conspiring to set prices at a certain level is an ethical concern in pricing.
  • Pump-and-dump schemes: Artificially inflating the price of a stock or cryptocurrency by spreading false information, and then selling it at the inflated price.
  • Market manipulation: Coordinated action by two or more traders in a market with a small number of participants to influence prices.
  • Deception and unfairness: Using deception and unfair tactics to manipulate market prices, which can be considered unethical from an Aristotelian virtue ethics perspective.
  • Lack of transparency: Concealing involvement or ties to a company to promote its stock, making it difficult for others to make informed decisions.

For example, Trump’s new crypto ventures are under scrutiny not just for ethical concerns over potential price manipulation. Allegations of political mischief have surfaced, casting additional doubt on his actions. Many critics contend that Trump is using his newfound influence and popularity to advance these crypto initiatives as a means to enrich himself financially. Such a move puts them in jeopardy of raising serious conflicts of interest and the potential misuse of government power.

Allegations of Political Misconduct

Such attempts to call out corruption and abuses of power through impeachment proved largely futile during Donald Trump’s first presidency. They further lamented that he filled the administrative state with conflicts of interest, including advisors and top appointees whose conflicts were even more egregious. One such example would be President-Elect Trump’s deposition of former ICE Director Tom Homan as his incoming “border czar.” Kushner’s inexperience quickly became a liability when his COVID-19 “shadow task force” collapsed. This completely abdicated the federal government’s pandemic response and left it in the hands of panicked, uncoordinated state and local officials. Still, as former senior White House advisors Jared and Ivanka reportedly did on many occasions, we are forced to ignore ethics rules. Equally alarming, they wouldn’t commit to divesting from their huge monetary stake. The degree to which Trump used the presidency for his personal financial gain during his first term was staggering, according to critics.

Likewise, the link between Trump’s political ambitions and his entrepreneurial interests in crypto is just as transparent. By promising unique perks such as a dinner with himself, he’s using his star power to reel in potential backers and supporters. This is part of a larger concern that he intends to use the presidency to enrich himself. Many see this as a dangerous potential abuse of power.

While there’s arguably a lot to like about Trump’s crypto dinner and NFT ventures, let’s not get carried away. These programs and initiatives combined have created millions of dollars in revenue and incredible positive engagement. They show us how cryptocurrencies and NFTs can engage with audiences in new, exciting, and unexpected ways. Conversely, the ethical issues around price manipulation and accusations of political wrongdoing are serious.

A Balanced Perspective

We know the cryptocurrency market is quite dynamic. We need smart, clear regulatory frameworks to avoid manipulative and abusive practices and protect investors from loss. It’s our duty to make those people with power accountable. They must be held accountable for any real or perceived conflicts of interests or abuses of power associated with crypto ventures. Only with an eye toward responsible innovation and ethical behavior can we as citizens tap into the full promise of cryptocurrencies and NFTs.

Trump’s crypto dinner is a fascinating real-world case study for how politics, finance, and technology cannot be separated in the crypto age. This example demonstrates the clear and present need to critically engage with the ethical implications of such endeavors. It further reiterates the need for transparency and accountability in the crypto marketplace. We know that the digital landscape is always changing. This is why it is extremely important to walk through these complexities and make a deep commitment to act ethically.

Trump's crypto dinner serves as a case study for the intersection of politics, finance, and technology. It highlights the need for careful consideration of the ethical implications of these ventures and the importance of transparency and accountability in the cryptocurrency market. As the digital landscape continues to evolve, it is essential to navigate these complexities with caution and a commitment to ethical conduct.