Sudden Crypto Supporter: What Did Trump Say at His NFT Dinner?

Original Title: “Trump's Pro-Crypto Bluster at NFT Gala Lacked Policy Substance”

Author | Danny Nelson

Translated by | Cat Brother, Wu Says Blockchain

At a dinner on Wednesday, Donald Trump attracted a voter group completely ignored by Joe Biden. But the presidential candidate is not truly well-versed in cryptocurrency policy.

During his first term in the White House, Donald Trump was not a fan of cryptocurrency; he had tweeted that these currencies "come out of thin air." Later, he sold millions of dollars worth of NFTs. This week, he reshaped himself as the preferred candidate in the cryptocurrency space.

"If you support cryptocurrency, you will vote for Trump because they want to end it," he said at the dinner held at Mar-a-Lago, referring to the Democrats and President Joe Biden. He also promised to ensure that his campaign could accept cryptocurrency donations.

His approximately 200 supporters were not surprised by the 77-year-old candidate's apparent shift. Many purchased $10,000 worth of Trump Trading Card NFTs to attend the bizarre, sweltering outdoor reception at the former president's Florida palace. A CoinDesk reporter also attended the event as an accompanying guest.

For nearly an hour, Trump answered questions from a crowd of sweating suit-wearers. Only a few questions focused on cryptocurrency, which was the nominal theme of the entire event but was, in reality, a very niche issue.

But this was enough to make a few things clear:

1. Trump is not an expert in cryptocurrency.

2. Trump is an expert in selling cryptocurrency.

3. The first two points do not matter because Trump has already declared himself a defender of cryptocurrency.

One exchange highlighted points 1 and 3 (we will discuss point 2 later). When asked about his views on Central Bank Digital Currencies (CBDCs) and "government blockchain" (both of which are typically opposed by cryptocurrency supporters), Trump responded, "I think everything has its place." He continued, "We have some incredible things happening, I mean, looking back a few years at cryptocurrency, people said it wouldn't succeed, but now the numbers are at record highs. I guess you could say it's a form of currency, and I think I support that, and I'm increasingly supportive of that."

For the single-issue voters in the industry (which may be quite small), the substantive content of Trump's support for cryptocurrency may not matter; what matters is that he made positive remarks about it. Trump seems to be the first major party presidential candidate to embrace cryptocurrency.

Attacking Biden

On the opposing side of the campaign, we see a publicly hostile presidential administration. Biden's SEC Chairman Gary Gensler is launching legal actions against multiple aspects of the cryptocurrency industry. Just hours before his opponent (Trump) held a golf resort dinner, earlier on Wednesday, the president pledged to block an attempt by the House to repeal a cryptocurrency accounting rule that political opponents claim has stifled the industry's growth.

"Biden doesn't even know what that is. If you asked Biden, 'Sir, do you support or oppose cryptocurrency?' he would say, 'What's that? Let me off the stage.' He has no idea," Trump said. Regardless of whether this seemingly reasonable assumption is true, Trump went on to attack the cryptocurrency-savvy official Gensler.

"What I want to say is: I have no problem with it; I want to make sure it's good, solid, and everything else, but I have no problem with it," Trump said when discussing cryptocurrency. He later stated, "If we are going to have what we have now, then we will have to accept a lot of things that not everyone likes."

Just hours before Trump's impromptu Q&A, Biden's campaign team blasted "those who were duped into spending up to $10,000 to purchase his simple digital images" in an email to supporters. The email criticized Trump for not campaigning during the midweek recess but instead hosting a lavish NFT gala.

But Trump was indeed campaigning on Wednesday night. He was vying for the votes of those unusually vocal cryptocurrency groups that Biden has completely ignored. Of course, only a few hundred people heard his speech in person. Videos of Trump supporting cryptocurrency sparked heated discussions on social media and led to extensive media coverage of self-proclaimed political advocates for cryptocurrency.

"There are 50 million cryptocurrency holders in America. That's a lot of voters," claimed Ryan Selkis, CEO of the crypto data platform Messari, in the crowded banquet hall of Mar-a-Lago, where VIPs (those who purchased $10,000 NFTs) mingled with dinner attendees (who paid $4,700). Trump unexpectedly called Selkis to the stage.

Sound bites from Wednesday's NFT gala may further exacerbate the polarization of cryptocurrency, binding it to the "us versus them" struggle that plagues American politics. The libertarian roots of Bitcoin resonate less today; cryptocurrency has supporters in both parties.

The most influential voices in Republican politics have ignored the bipartisan reality of cryptocurrency, asserting that the Democrats want to kill it. "The Democrats are very much against it," Trump said, just hours after 21 of the 213 House Democrats voted to repeal the SEC accounting rule.

Trump positioned himself as the industry's only hope. His understanding of industry issues is sporadic. When asked how he would change the hostile U.S. policies driving cryptocurrency businesses abroad, he said, "We will stop it because I don't want that; I don't want that. I want if we are going to embrace it, then we must keep them here."

"We Made NFTs Hot Again"

Trump displayed more or less expertise in one area of cryptocurrency: his NFTs. The three series of Trump NFTs—depicting digital trading cards of Super Donald in various states of patriotism—have generated millions of dollars in sales. Wednesday's dinner celebrated the big buyers of his "Mugshot Edition" third series.

When discussing his trading cards, Trump said, "We did this when NFTs were not hot; we made NFTs hot again." He added that some NFT buyers made tens of thousands of dollars in the resale market.

One attendee asked him if he would sell a fourth series of NFTs, and the seasoned businessman hesitated. "I believe in supply and demand. As you know, 1 did well, 2 did well, and 3 did well. Maybe at some point, this will reverse."

He polled the audience: How many Mugshot big buyers want a fourth series of NFTs? Most hands went up. Trump sounded confused: "Based on supply and demand, wouldn't that potentially keep the price of what you've already purchased lower?" He tested their resolve. "Who wouldn't want to see a fourth series for that reason?" Only a few hands were raised.

"Well, there are a few economists," Trump said amid laughter from the crowd.