Trump Media & Technology (DJT) stock plummeted 5.08% in Tuesday's intraday trading session, following concerns raised over the legitimacy of Donald Trump's promotion of cryptocurrencies like Solana, XRP, and Cardano.
Over the weekend, President Trump floated the idea of a strategic national cryptocurrency reserve, initially mentioning lesser-known coins like Solana and XRP, before also including Bitcoin and Ether. This caused a surge in prices for these cryptocurrencies. However, as a Reuters Breakingviews column pointed out, there is no essential reason for the U.S. government to own such coins, and promoting lesser-known ones could invite corruption.
The article also highlighted potential conflicts of interest, as Trump Media & Technology is pivoting into digital currencies, and Trump himself owns a stake in a crypto project called World Liberty Financial. The administration's recent policy decisions, such as providing guidance that meme coins are mere collectibles and dropping lawsuits against crypto exchanges, further undermine the legitimacy of cryptocurrencies.
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