What is The DeFiant Ones by US President Hopeful Donald Trump?
"The DeFiant Ones," a new project unveiled by former President Donald Trump, who is currently a Republican presidential candidate, marks his latest venture into the cryptocurrency world. Announced on his social media platform, Truth Social, the project was revealed with minimal details, leaving much to speculation.
Purpose and Naming of The DeFiant Ones
At this point it is unclear whether the platform will be a decentralized autonomous organization (DAO), a new cryptocurrency, a trading exchange, or something else entirely.
However, in his post, Trump criticized major banks and financial elites for marginalizing the average American. “For too long, the average American has been squeezed by the big banks and financial elites,” the post stated. “It’s time we take a stand—together. #BeDefiant.” Trump goes on to hint that his new decentralized finance platform will challenge these powerful entities.
The platform, named “The DeFiant Ones,” plays on the term “decentralized finance,” or DeFi, a sector within the cryptocurrency world that operates outside traditional financial systems.
Trump’s sons, Donald Jr. and Eric Trump, have hinted that this platform could be a lifeline for those who are typically overlooked by conventional banking systems. In an interview with the New York Post, Eric Trump highlighted the potential of such a platform to streamline financial services for those who are often denied by traditional lenders. “Essentially over half this country right now cannot be banked,” Eric Trump explained. “Meaning they will be rejected for most loans from most institutions. But with this technology, they could have the ability to almost instantaneously be approved or denied from a lender based on math, not policy. Money could be in their account in minutes, not months.”
Trump’s Relationship with Cryptocurrency
Numerous reports suggest that the Trump administration played a role in fostering the growth of cryptocurrency, contributing to significant advancements in the decentralized finance sector during his tenure. Notably, Bitcoin reached an all-time high of $2,200 in 2017, the year Trump took office, and continued to see substantial growth throughout his term.
He was also the keynote speaker at this year’s Bitcoin Conference in Nashville, Tennessee, during which he promised to fire Gary Gensler, the chair of the Securities and Exchange Commission, a perpetual enemy of the crypto crowd.
According to his most recent financial disclosures, Trump holds between $1 million and $5 million in a "virtual ethereum key." He also earned $7.2 million from three NFT collections.
Critics of The DeFiant Ones
The idea that cryptocurrency can enhance access to financial services for unbanked individuals is widely promoted in the industry, but reports indicate otherwise. The Center for American Progress (CAP), a progressive think tank, found "no systematic evidence that crypto transactions are less expensive than traditional financial transactions," pointing out that crypto assets are mainly used for speculation rather than everyday payments.
Todd Phillips, CAP's former director of financial regulation and corporate governance, wrote in 2022, "The fundamental purpose of financial inclusion is to improve the overall economic well-being of low-income individuals, and encouraging people to use their hard-earned paychecks or savings to buy highly risky assets could do just the opposite."
Keeping up to date with The DeFiant Ones
Currently, Trump has directed users to a Telegram channel that claims to be the only official channel for this new venture. The channel, active since mid-August, does not yet provide specific information about the nature of “The DeFiant Ones.” Apart from being teased on Truth Social and leading users to a Telegram channel, Trump's The DeFiant Ones have also been appearing on other platforms. The family-run crypto project that will soon be a new kind of platform was also shared by Donald Trump Jr., the business magnate's son, via X.
Looking out for The DeFiant Ones
In conclusion, Donald Trump's latest venture, "The DeFiant Ones," represents a bold foray into the cryptocurrency space, reflecting his continued engagement with both innovative technologies and financial reform rhetoric. By positioning the platform as a solution for unbanked and underserved communities, Trump aims to challenge traditional financial institutions and offer an alternative to conventional banking methods. However, skepticism surrounds the platform's potential effectiveness, given historical criticisms of cryptocurrencies and their ability to deliver on promises of financial inclusion. As "The DeFiant Ones" prepares for its launch, its success will depend on its ability to navigate regulatory hurdles, provide genuine value to its users, and distinguish itself in an increasingly crowded crypto market. Whether it will live up to its ambitious goals or become another footnote in the broader narrative of cryptocurrency remains to be seen.
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