Trump accused of cryptocurrency fraud: Allegations of market manipulation

Compiled by: Suat TEKİN - 12punto.com.tr

US President Donald Trump shared a message on the Truth Social platform praising his own cryptocurrency, $TRUMP. Trump described his own cryptocurrency as the 'best crypto.' Following this statement, it was reported that the value of $TRUMP rose from 10.99 dollars to 12.24 dollars. Social media users criticized Trump's move, alleging that he did it for personal gain. After its upward movement, Trump's cryptocurrency fell rapidly, dropping below 11 dollars. Some investors described the event as a 'pump and dump' operation.

In his post on Truth Social, Trump stated, ''I love $TRUMP. So great! The best of them all!'' This statement sparked debates in the cryptocurrency community. The total supply of the $TRUMP coin, hosted on the Solana blockchain platform, was set at one billion. While 800 million of these coins are allocated to two companies linked to Trump, 200 million are planned to be offered for sale through an initial coin offering (ICO) on January 17, 2025.

Users on the social media platform X made comments criticizing this move by Trump. One user commented, 'Pump and dump rhymes with Trump.' Other users also claimed that Trump carried out this initiative for personal gain.

'Pump and dump' operations refer to situations in platforms where financial transactions are made, such as cryptocurrency markets, where small investors are misled by manipulators into certain investments and suffer losses. The fact that Trump's cryptocurrency gained value rapidly with the US President's message and then lost most of that value aligns with the 'pump and dump' allegation.

Change in the value of $TRUMP on March 24 Source: Binance

PRAISE FOR TRUMP FROM BINANCE CEO

Binance CEO Richard Teng stated that the Trump administration is a 'great' reset opportunity for the cryptocurrency sector. Teng said, “We are operating in a very different environment.” In the last 16 months, Binance has transformed from a political outcast in Washington into a potential power center.

According to a report by CNBC, Binance signed a 4.3 billion dollar settlement with market regulators. Teng expressed that a friendlier political environment for the crypto sector has emerged under the Trump administration. Appointed as CEO in November 2023, Teng said, 'We have benefited from this change,' referring to Trump's return to the Oval Office.

In a report by The Wall Street Journal, it was noted that Binance is in talks for the Trump family to acquire a financial stake in the company. Trump has not yet made a statement regarding the claim.

Bloomberg announced that World Liberty Financial, a crypto bank linked to Trump, is in talks with Binance to issue a dollar-pegged currency. If the claim is true, the US President may be attempting to profit by using his legal authority in a matter where he has a direct financial interest.

Responding to these allegations, Teng stated, ''I believe World Liberty Financial has denied the reports.'' Teng denied rumors that Trump holds shares in Binance.

News Source: 12punto