Dive into the heart of the crypto party: Bitcoin celebrates Trump’s inauguration!

David Sacks showed a big smile Friday evening, on stage between the Doric columns of the Andrew W. Mellon Auditorium. This prestigious location, facing the National Mall, was the scene of a great celebration. A few days before his return, Donald Trump is preparing to “make America great again”, and Sacks, an influential member of PayPal, investor and podcaster renowned in the world of cryptocurrencies, is preparing to join the administration in as head of artificial intelligence and cryptocurrencies. As a celebration, he was hosting the Crypto Ball in partnership with various industry sponsors. “The terror against cryptos is finally over,” he said in his speech.

This feeling of freedom resonated with many VIPs present that evening. Brian Armstrong, CEO of Coinbase, was in attendance; his cryptocurrency exchange had been sued by the Securities and Exchange Commission (SEC) two years earlier for allegedly operating as an unregistered securities broker-dealer. Marathon CEO Fred Thiel spoke with House Speaker Mike Johnson; his company had also been sued the previous year for failing to have policies in place to protect sensitive information. The Winkelvoss twins were also there, having settled a case with the SEC last year for allegedly offering unregistered securities through their Gemini platform. Later in the evening, rapper Soulja Boy took the stage to perform his famous song “Crank That (Soulja Boy)”. He too had run-ins with the SEC two years ago for illegally promoting a lesser-known token. Do you get the idea?

Throughout the Biden administration, the industry has complained of unclear rules and SEC intervention under President Gary Gensler. However, Trump, who previously called cryptocurrencies “based on hot air,” embraced the sector as a growth opportunity, while promising clear and supportive regulations. Leading figures in the industry, once treated as pariahs by Democratic lawmakers after the FTX episode, now find themselves in the corridors of power. The “prodigal sons” of cryptocurrencies have invested more than $130 million to elect Trump and support Republicans in Congress. Now that their party is in full control, expectations are high. (As well as the price of Bitcoin, which remains above $100,000.)

“There is a great level of trust,” explains Mike Belshe. “This was a big topic of discussion last night.” Belshe is the CEO of BitGo, a company that processes eight percent of all Bitcoin transactions by value. He sees Trump’s second term as a pivotal moment for the economy. “If we can’t help change America now, maybe there’s no way to do it anymore,” he said. “Maybe it’s just over.”

“Last night, the crypto community wanted to show the political community that this is very important,” says Belshe, who organized a fundraiser for the Trump campaign last summer. “These are not just outsiders, but serious people from Wall Street and from various backgrounds in the United States.”

This includes a high-profile investor known as Snoop Dogg. The rapper — who once aimed a Trump caricature with a toy gun in one of his music videos — said he was now on good terms with the president-elect and performed his show Friday night for an undisclosed fee. After all, he has always been a strong supporter of cryptocurrencies. “They left a real ‘crip’ at the Crypto Ball,” he laughed in a video, along with Rick Ross, who also performed Friday night.

The ball started around 8 p.m. Attendees paid $2,500 to enter the event, a cost that included an open bar but no dinner. Videos from the evening suggest that gender parity was not achieved, but a range of ages was seen among the men. Rushi Manche, a 22-year-old crypto start-up founder in attendance, explained that there is currently a “brain drain” in this sector and that he hopes to see the United States become a pillar of the industry when Trump puts in place clear rules. “A lot of my peers say to me, ‘Hey, I want to start my company in Singapore. I want to set up my company in the Cayman Islands because I don’t feel comfortable in the United States,’” he said.

For $100,000, Crypto Ball guests could purchase a VIP ticket offering access to a reserved area overlooking the main crowd, where DC and BTC figures mingled with the likes of Ted Cruz, Donald Trump Jr., Michael Saylor, Scott Bessent, Peter Thiel and Howard Lutnick. Or they could just invite themselves. Nick O’Neill — who runs an NFT company and went viral last year for parodying the crypto-bro lifestyle — reported seeing people escaping security to rub shoulders with the stars. “Someone told me he met with several disgraced former members of Congress,” O’Neill said. (At least one, George Santos, was confirmed in attendance by Politico.)

O’Neill described the marble setting of the Crypto Ball as “quasi-opulent” but called it a “networking event” — featuring some of the world’s most powerful and wealthy individuals. The evening went as planned, except for one big surprise. Around 9 p.m., Donald Trump announced on Truth Social that he was launching a meme coin called $TRUMP. O’Neill was quick to record videos mocking savvy investors who knew nothing about the president-elect’s new offer. “Another guy and I started buying as fast as we could,” he said. “He invested $25,000 and was Really grateful to me.” In an airport waiting for a flight to Miami, O’Neill laughed like someone who has just made a nice capital gain. That Friday evening, the value of $TRUMP was around a billion dollars. By Saturday afternoon, it had climbed to more than 20 billion.

Takeaways

• David Sacks, a renowned investor, celebrates his new role in the American administration during a luxurious event dedicated to the world of cryptocurrencies.
• Major figures in cryptography, such as Brian Armstrong of Coinbase, were present, testifying to an atmosphere of newfound freedom.
• The Crypto Ball attracted various notable players, including Snoop Dogg, highlighting the mix of fun and economic opportunity in the sector.
• The new craze for cryptocurrencies, under a possible regulatory change, raises questions about the economic future of the United States.

In a context where the cryptocurrency industry is seeking a real regulatory framework, expectations placed on the coming administration are high. This mix of excitement and uncertainty challenges observers: will the turn towards a favorable environment be beneficial for innovation or will it exacerbate the challenges of the sector? The discussion is open.