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Opinion
Trump’s crypto windfall showcases his ability to turn loyalty into power
Despite clear conflicts of interest and institutions meant to stop them, Trump has deftly weaponised and profited off the loyalty he demands
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Christine Loh is chief development strategist at the Institute for the Environment, Hong Kong University of Science and Technology.
Like many people outside the United States, I admire much of what it represents: open debate, strong institutions, energetic politics and the belief that public power should be restrained by rules. That is why watching the US today is so extraordinary.
Consider US President Donald Trump’s meme coin. Nearly a million accounts that bought the $TRUMP coin have lost money, according to a report in The New York Times based on analysis of blockchain transactions. Their collective losses have been estimated at US$3.8 billion.
Trump, meanwhile, has reported enormous income of more than US$1.4 billion from cryptocurrency ventures associated with him and his family. In a social media post, economist Paul Krugman called the buyers of coins “suckers” of a pump-and-dump scheme in which naive investors piled into a worthless asset while insiders prospered.
This might not fully explain what happened. Trump demands unquestioning loyalty and has an intensely loyal political following. Is it really surprising that some of the people who voted for him would buy something carrying his name?
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