Elon Musk's reversal, division within the crypto inner circle, and a major fire in Trump's backyard
In the early hours of June 6th, Elon Musk and Donald Trump publicly clashed on the X platform, causing Tesla's stock price to drop by more than 15% in a single day, while Trump's media company stock plummeted by 7.82%. Musk revealed that Trump appeared in the Epstein files, and Trump accused Musk of annoying him and criticized Musk for canceling the electric vehicle mandate. The breakdown of their relationship was triggered by Trump's withdrawal of Musk's ally NASA administrator nomination and Musk's criticism of the "Build Back Better Act."
The "Build Back Better Act" involves government budget, taxation, debt, and environmental policies, promising to extend Trump's tax cuts and increase defense spending, but faced opposition within the Republican Party. Musk warned that the act would raise the U.S. fiscal deficit to 2.50 trillion dollars.
The Trump family crypto project WORLD LIBERTY FINANCIAL (WLFI) and the company behind the TRUMP token, FIGHT FIGHT FIGHT LLC, had disputes related to the recent Trump Wallet app. MagicEden collaborated with $TRUMP to launch the Trump Wallet, which saw a short-term market cap increase, but Trump's children denied any association. The Trump Wallet account was banned multiple times, and the project is managed by Slingshot Finance, acquired by MagicEden.
There are multiple factions within Trump's crypto group, with main drivers including Bill Zanker and Crypto Council Chairman David Sacks. Differences exist between the issuance of $TRUMP and $MELANIA tokens, with the latter criticized for being rushed. The Trump family holds 60% of WLFI shares and is expected to earn tens of millions of dollars from USD1 stablecoin transactions.
Since last autumn, the Trump family has launched several crypto projects, including American Bitcoin, $TRUMP, $MELANIA, WLFI, and Trump Media & Technology Group. Recently, Truth Social submitted a Bitcoin ETF application, $MELANIA reached a liquidity agreement with Wintermute, WLFI airdropped 47 USD1 tokens to subscribers, marking the stablecoin sector's progress. The $TRUMP and Trump NFT teams are gradually distancing themselves from Trump's core circle.