More stories

  • in

    Elon Musk signals he may back down in public row with Donald Trump

    Elon Musk has suggested he may de-escalate his public row with Donald Trump after their spectacular falling out.The Tesla chief executive signalled he might back down on a pledge to decommission the Dragon spacecraft – made by his SpaceX business – in an exchange on his X social media platform. He also responded positively to a call from fellow multibillionaire Bill Ackman to “make peace” with the US president.Politico also reported overnight that the White House has scheduled a call with Musk on Friday to broker a peace deal after both men traded verbal blows on Thursday.The rolling spat – which played out over social media and in a Trump White House appearance – included the president saying he was “very disappointed in Elon” over Musk’s criticism of his tax and spending bill. Musk also said the president’s trade policies would cause a recession and raised Trump’s connections to the convicted child sex offender Jeffrey Epstein.Musk had responded to a Trump threat to cancel his US government contracts on Thursday with a post on X stating he would retire his Dragon spacecraft, which is used by Nasa. However, responding to an X user’s post urging both sides to “cool off”, Musk wrote: “Good advice. Ok, we won’t decommission Dragon.”Musk also appeared to proffer an olive branch in a reply to a post from the hedge fund owner Ackman, who called on Trump and Musk to “make peace for the benefit of our great country”. Musk replied: “You’re not wrong.”Politico also reported a potential peace call between Musk and the White House, claiming Trump’s aides had worked to persuade the president to tone down his public criticism of the Tesla owner before arranging the phone conversation for Friday.After a brief interview with Trump about Thursday’s Musk implosion, Politico reported that the president displayed “an air of nonchalance” about the spat. “Oh it’s OK” Trump said, when asked about the dispute. “It’s going very well, never done better.” Referring to his favourability ratings, Trump added: “The numbers are through the roof, the highest polls I’ve ever had and I have to go.”Politico reported that Trump’s aides had urged the president to focus on getting his tax and spending bill through the Senate instead of clashing with Musk, with one of his Truth Social posts reflecting a less confrontational tone. “I don’t mind Elon turning against me, but he should have done so months ago,” he wrote on his Truth Social platform, before adding that the tax cut legislation was one of the “Greatest Bills ever presented to Congress”. More

  • in

    Trump v Musk: the two worst people in the world are finally having a big, beautiful breakup | Arwa Mahdawi

    If you paid attention during physics class you will remember the third law of ego-dynamics. Namely: when two egos of equal mass occupy the same orbit, the system will eventually become unstable, resulting in an explosive separation and some very nasty tweets.To see this theory in action please have a gander at the dramatic collapse of the Donald Trump and Elon Musk bromance. The news has been a nonstop horror show for what feels like forever. Watching two of the very worst people in the world direct their nastiness at each other is extremely cathartic.While I won’t contain my glee, I will collect myself long enough to go over the backstory. First, as you know, Musk spent $277m to help get Trump elected. If this happened somewhere else we would call it corruption and the US might invade the country to install democracy. But this is the US we’re talking about, so it was fine.After Musk donated all those quids, Trump provided the quo. Musk got his Doge gig, through which he weakened all the agencies that were regulating his businesses in the name of saving the US a load of money.This is the point where things started to go wrong and Musk’s reputation started to tank. Over the years the billionaire had managed to convince a depressingly large number of people that he was some sort of genius rocket man with anti-establishment views. Once he became part of the establishment, however, and started slashing federal jobs, a lot of people started to get annoyed with how much influence he had over their lives.Musk may be a space cadet but even he could see how much he was destroying his brand. It didn’t help, of course, that Tesla shares were dropping.So a week ago he did the sensible thing and announced that he was leaving his role with the Trump administration. Rather more interestingly, however, the “first buddy” publicly criticized Trump’s marquee tax bill. Whispers of a rift between Musk and Trump started circulating.At first when Musk parted ways with the Trump administration I thought the public divorce might be smoke and mirrors: a mutually beneficial PR exercise. Trump got rid of a creepy weirdo who nobody liked and kept causing him problems. Musk got to show his worried investors that he was putting all his energy back into the companies he’s supposed to be running. Rumours of a fallout, I thought, were greatly exaggerated.On Thursday, however, things escalated to the point where I don’t think this fallout can possibly be manufactured or exaggerated.Thursday afternoon, you see, is when the ghost of Jeffrey Epstein entered the chat. Writing on the social network he spent billions buying, Musk tweeted: “Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!” To be extra messy he added: “Mark this post for the future. The truth will come out.”It’s worth noting that Musk, a man who reportedly foists his sperm on every woman of a certain age that he meets, has a well-documented history of calling other people sex offenders. The self-sabotage probably started when he called the British cave explorer Vernon Unsworth a “pedo guy” in 2018, without any justification, after Unsworth helped rescue 12 boys trapped in a Thai cave. Musk, in case you had forgotten, had made a lot of noise about how he was going to rescue the kids with a very special little submarine. He did not, in fact, rescue any children and Unsworth hurt the billionaire’s feelings when he suggested Musk “stick his submarine where it hurts”.Still, while Musk does not think before he tweets, this seems a tad reckless even for him. It certainly goes well beyond the bounds of “manufactured PR brawl” and enters “burning bridges” territory. And, of course, having been in bed with the guy you’ve just implied was in Epstein’s circle doesn’t exactly make you look good does it?As well as tweeting about Epstein, Musk also said Trump would have “lost the election” if he hadn’t intervened with his hundreds of millions. Musk also suggested that he might start a new political party.Trump, meanwhile, hasn’t exactly been holding his tongue. He called Musk “crazy” and threatened to cut off government contracts with the billionaire’s companies.So is this the end of a big, beautiful friendship? Is it, as conspiracy theorist and Trump ally Laura Loomer put it: “a Big beautiful breakup”?While it feels like it, we should remember that Trump has kissed and made up with his haters before. While the president has very thin skin (all that bronzer can wreak havoc on the epidermis), he’s also a pragmatist.Just look at “Little Marco” AKA Marco Rubio AKA the secretary of state. Before the 2016 election, Rubio described Trump as a “con artist” and suggested he had bladder issues. Trump, meanwhile, called Rubio a “nervous basket case” who was the sweatiest person he’d ever met. “It’s disgusting,” he said. “We need somebody that doesn’t have whatever it is that he’s got.” Various other barbs were exchanged but, almost a decade on, all seems to be forgiven. The two men are now as thick as thieves.It’s also possible that, as a simple woman, I can’t comprehend the testosterone-infused intricacies of what’s going on with Musk and Trump. Conservative commentator Jack Posobiec helpfully tweeted: “Some of y’all cant handle 2 high agency males going at it and it really shows. This is direct communication (phallocentric) vs indirect communication (gynocentric).”Still, while there may eventually be some sort of reconciliation, I for one am enjoying the drama. I think we all are. Well, maybe not Kanye West AKA Ye. On Thursday the disgraced rapper tweeted: “Brooooos please nooooo […] We love you both so much.” As Musk might say himself: bet you did Nazi that coming. More

  • in

    Musk calls for Trump to be impeached as extraordinary feud escalates

    Elon Musk called for Donald Trump to be impeached after mocking his connections to the convicted sex offender Jeffrey Epstein, as the president threatened to cancel federal contracts and tax subsidies for Musk’s companies in an extraordinary social media feud on Thursday.The deterioration of their once close relationship into bitter acrimony came over the course of several remarkable hours during which the president and the world’s richest man hurled deeply personal insults over matters significant and insignificant.In the most churlish moment of the astonishing saga, Musk said on X the reason the Trump administration had not released the files into Epstein was because they implicated the president. He later quote-tweeted a post calling for Trump to be removed and said Trump’s tariffs would cause a recession.“Time to drop the really big bomb: Donald Trump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!” Musk wrote, after Trump threatened to cut subsidies for Musk’s companies as it would save “billions”.The direct shots at Trump were the latest twist in the public feud over a Republican spending bill that Musk had criticized. Trump and Musk had been careful not to hit each other directly, but the pair discarded restraint as it escalated online.The bizarre drama served to underscore the degree to which Trump and Musk’s relationship has been one of mutual convenience, despite the White House claiming for months that they were simply ideologically aligned.It also caused the rightwing writer Ashley St Clair, who gave birth to Musk’s 14th known child and sued Musk for child support, to weigh in. “Let me know if u need any breakup advice,” she posted on X, tagging Trump.Shares in Tesla, Musk’s electronic vehicle company, fell almost 15% on Thursday afternoon with the decline timed to when Trump’s remarks began. Musk’s rocket company, SpaceX, is not publicly traded, but competitors to SpaceX rose on the news.For weeks, Musk has complained about the budget bill, and used the non-partisan Congressional Budget Office estimating the bill would add $2.4tn to the deficit over the next decade as an opening to condemn the legislation as a “disgusting abomination”.On Thursday, Trump appeared to finally have had enough of Musk’s complaints. Speaking in the Oval Office as the German chancellor, Friedrich Merz, looked on in bemusement, Trump mocked Musk’s recent black eye and questioned why he didn’t cover it up.“You saw a man who was very happy when he stood behind the Oval desk. Even with a black eye. I said, do you want a little makeup? He said, no, I don’t think so. Which is interesting,” Trump said. “Elon and I had a great relationship. I don’t know if we will any more.”Trump then ratcheted up his barbs against Musk, accusing him of turning against the bill solely out of self-interest, as the bill did not benefit Tesla, Musk’s electronic vehicle company. Trump also pulled the nomination of Musk’s preferred candidate to lead Nasa.“I’m very disappointed with Elon,” Trump said. “He had no problem with it. All of a sudden he had a problem, and he only developed the problem when he found out we’re going to cut the EV mandate.”Musk then went on the warpath.Within minutes of Trump’s comments appearing in a clip on X, where Musk was responding in real time, Musk accused the president of lying about the bill, and accused Trump of being ungrateful for the millions he spent to get him elected.“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” Musk said in a post on X. He added: “Such ingratitude.”Musk taking credit for Trump’s election win initially threatened to be the touchpoint for their relationship, given Trump had made a point to say that Musk’s contributions had no effect on him winning the battleground state of Pennsylvania.But then Trump posted on Truth Social that he had fired Musk from his role as a special adviser because he was “wearing thin” at the White House, and Musk responded: “Such an obvious lie. So sad.”It was less than a half an hour later that Musk fired off his Epstein tweet, in effect accusing him of being part of an alleged child sexual abuse ring linked to Epstein, using a dog whistle for the Maga movement to try to set them against the president.In doing so, Musk ignored his own connections to Epstein. In 2014, like Trump, Musk was photographed at a party with Ghislaine Maxwell, a former Epstein girlfriend who was convicted in 2021 on charges that she helped the financier’s sex-trafficking activities.The public feud comes after a remarkable partnership that lasted longer than many Democrats on Capitol Hill and in Trump’s orbit predicted.Musk spent hundreds of millions of dollars on Trump’s re-election campaign through his specially created America Pac, which shouldered a large portion of Trump’s door-knocking campaign, although the actual impact of that ground-game effort is unclear. More

  • in

    Trump and Musk’s spectacular bust-up – podcast

    Archive: Fox News, CBS News, CNBC, Associated Press, ABC 7 Chicago, NBC
    Listen to Today in Focus’s episode about Musk city
    Subscribe to the Guardian’s new narrative series Missing in the Amazon
    Send your questions and feedback to politicsweeklyamerica@theguardian.com
    Help support the Guardian. Go to theguardian.com/politcspodus More

  • in

    Trump’s crypto ventures may be his most dangerous moneymaking scheme | Mohamad Bazzi

    Throughout his business career, Donald Trump sought new ways to leverage his name to make easy money. He ran an airline, a university and a winery. Thanks to the Apprentice show that made him a reality TV star, the US president slapped his name on real estate projects around the world built by other companies – along with Trump-branded steaks, vodka, deodorant and bottled water. Many of these businesses ultimately failed, but Trump rarely invested his own funds and he still walked away with hefty licensing fees.Today, as the most powerful person in the world, Trump has found perhaps the easiest way to profit off his name: cryptocurrency. Days before his inauguration for a second term on 20 January, Trump’s family business launched a meme coin, called $Trump, which is a type of digital currency often connected to an online joke or mascot. It has no inherent value beyond speculation. The coin quickly soared in value up to $75 per token, but it crashed days later. No matter the ultimate price, Trump and his family rake in millions of dollars in fees as the coin is traded by speculators hoping to turn a quick profit, or those trying to curry favor with him.It’s difficult to keep up with all the ways that Trump is corrupting the US presidency and using it for personal profit, but his crypto ventures are among the most dangerous because they potentially allow him and his family to collect hundreds of millions of dollars from foreign investors and governments that would normally have a harder time funneling money to a US politician. Thanks to the memecoin and other deals, the Trump family’s wealth increased by nearly $3bn in the last six months. Trump has proven himself the most successful president – at monetizing the presidency.While he is exempt from conflict of interest laws that ban federal employees from profiting off their positions, every US president since the 1970s had voluntarily abided by these rules – until Trump. Previous occupants of the White House either sold their financial holdings or set them aside in blind trusts. But in his first term, Trump refused to divest from his business empire, which is mostly centered around the Trump Organization and is still managed by his sons.Since Trump’s first term, his family business has also evolved beyond a real estate conglomerate that licenses the Trump name to hotels, luxury towers and golf courses around the world, earning millions of dollars in branding and management fees without investing its own funds in most projects. The business now includes a portfolio of social media and crypto ventures, providing Trump with new ways to profit from being in office. And Trump is more emboldened to ignore norms set by past presidents, thanks to a compliant Congress led by Republicans and a US supreme court ruling last year which gave Trump “absolute immunity” from prosecution for his official acts as president.Trump’s foray into cryptocurrency underscores the ways he can leverage the presidency for personal gain by exploiting his sense of impunity and an industry that is notorious for fraud and a lack of transparency. After the value of his memecoin collapsed, Trump’s crypto venture announced in April that the 220 largest buyers of the token would be invited to a private gala dinner with the president at his Virginia golf club, while the top 25 buyers would get access to a VIP reception with Trump and a White House tour. Once that contest was under way, the $Trump coin got a new round of media attention and its value jumped by more than 50%. The more people bought the token, the more Trump and his family profited from crypto transactions that are usually shrouded in anonymity. Since the memecoin’s launch in January, Trump-affiliated businesses received $312m from crypto sales and $43m in other fees, according to a Washington Post analysis of trading data.Of course, US presidents for decades have used private dinners and gatherings to grant special access to wealthy donors and raise funds for their political parties or their own campaigns. But campaign contributions carry legal restrictions on how they can be spent, and US donors can’t remain anonymous and must disclose all of their donations to political candidates. The sweepstakes dinner organized by Trump’s crypto business was not a fundraiser or campaign event – it was a gathering arranged to directly enrich him and his family.Beyond the inherent conflict of Trump doing business within an industry that he has immense power to regulate as president, Trump also opened himself up to foreign influence as his memecoins became a vehicle for foreign actors to funnel money to his family. While Trump’s crypto business has refused to release a list of those invited to last month’s dinner at the Trump National Golf Club in Virginia, media organizations compiled lists of attenders that included foreign citizens who would normally be forbidden from donating funds to US politicians. (The Washington Post found that nearly half of the top 220 Trump memecoin holders purchased their coins from crypto exchanges that reject US-based customers, meaning they are probably foreign buyers. And 19 of the top 25 buyers, who were invited to a VIP reception with Trump before the dinner on 22 May, and a “special tour” the next day, had bought coins from similar exchanges.)The best-known foreign investor who attended Trump’s dinner was Justin Sun, a Chinese billionaire who founded the crypto platform Tron and had spent more than $20m on the president’s memecoins, earning him the distinction of being the contest’s top buyer. In 2023, the Securities and Exchange Commission, under Joe Biden’s administration, charged Sun with fraud and market manipulation. But a few weeks after Trump took office, the SEC asked a federal court to pause its lawsuit.What could be behind the SEC’s change of heart about pursuing charges against Sun under the second Trump administration? Sun is one of the top investors in World Liberty Financial, a crypto venture launched by Trump’s family in September. After Trump won the November election, Sun bought $75m in World Liberty tokens, and he was named an adviser to the company.World Liberty is at the heart of another foreign entanglement – and potential conflict of interest – for Trump and the crypto industry. On 1 May, the president’s son Eric and a business partner, Zach Witkoff (who is also the son of Steve Witkoff, Trump’s special envoy), announced that an investment fund backed by the government of Abu Dhabi would invest $2bn using a stablecoin – a form of digital currency – offered by World Liberty. That transaction could eventually generate hundreds of millions of dollars in revenue for the president and his family.Years before he got into the business, Trump had dismissed cryptocurrencies as “a scam” which have values that are “based on thin air”. But Trump changed his tune dramatically when he met with the highest-paying customers of his personal memecoin at last month’s dinner. “The past administration made your lives miserable,” Trump told his guests, referring to a Biden administration crackdown on crypto companies. And then the president promised to do things differently: “There is a lot of sense in crypto. A lot of common sense in crypto.”Already, the Trump administration has been pushing to deregulate the industry and in April instructed the justice department to disband a unit that focused on investigating crypto-related fraud. Last year, a federal judge sentenced Sam Bankman-Fried, who founded the now bankrupt FTX crypto exchange, to 25 years in prison for perpetuating one of the largest financial frauds in modern history, and bilking his customers out of billions of dollars.Once Trump dismantles regulation and law enforcement of the industry, he has promised to make the US the “crypto capital of the planet”. And the president will continue to enrich himself and his family along the way.

    Mohamad Bazzi is director of the Hagop Kevorkian Center for Near Eastern Studies, and a journalism professor, at New York University More

  • in

    Is every memecoin just a scam? Experts on whether Andrew Tate and Trump are fleecing their followers

    In November last year, I was turned into a memecoin. Several, in fact.Someone alerted me that a memecoin called Dork Nerd Geek ($DNG) had been minted with a picture of my face, and it already had a market cap (the total value of all coins in circulation) of $29,000. Twenty minutes later it was $100,000. An hour later it was $800,000.I had no idea what was going on, but I did know that “Dork Nerd Geek” was the nickname Andrew Tate gave me because I’ve spent much of my journalistic career investigating allegations of human trafficking made against him.I noticed he was currently livestreaming to his followers. I opened up his live stream and, for the first time, bore witness to the insane volatility of the memecoin market.In the space of 10 minutes, dozens of new me-related memecoins were being minted, including “Disgraced News Gatherer”, “Matt Shea is a faggot,” and “Take My Wife Tate (CUCK),” the latter of which included a picture of my fiancee taken from Instagram. Tate was pumping some of these memecoins in value merely by talking about them, with market fluctuations happening in real time on the order of millions, based on his every word.Two seconds after he said the words “Fuck Matt Shea,” a coin called “FUCK MATT SHAE [sic]” soared in value. Twenty minutes later, he uttered the words “Fuck Matt Shea … ” again and it went even higher, only to drop back down to nothing when he finished his sentence with “… is not a generational asset”. He then said he would pump the coin after taking a piss. He walked offscreen to urinate. It rocketed.View image in fullscreenSoon, there were hundreds more Matt Shea memecoins with similar names, as his followers tried to trick people into thinking that their Matt Shea memecoin was the one Tate was pumping. His words became memecoins, those memecoins shot up in value, and then the value disappeared instantaneously.All in all, about $2m was spent by people on memecoins making fun of me in the span of a few hours, and hundreds of millions more on other coins he mentioned during the stream.By the end of his live stream, the value of all the coins he pumped was back to near zero. All the fans who had invested at his behest collectively would have lost hundreds of millions of dollars.His followers may have felt they were in on the joke, but in the end they mostly lost their money. Only a tiny number of wallets actually profited from the coin including one crypto that made a profit of $240,000.A number of online crypto investigators including Coffeezilla, bored2boar, StarPlatinum and others have found that Tate has manipulated memecoin markets using “pump and dump”-like schemes, leading to large profits for those within his inner circle. We put the allegations in these investigations to Tate’s team, who said they had no comment.What happened on Tate’s stream that day felt bizarre but I didn’t completely understand what I was witnessing. I thought I basically understood bitcoin, but how do memecoins differ, and why do they continue to be popular when so many people have lost money on them?Is every memecoin a scam?According to David Gerard, author of Attack of the 50 Foot Blockchain: “Basically, literally, yes.”“All of this is like a big game of pretend with made-up financial instruments,” he said. “It’s printing your own made-up money. You print your own Monopoly money and then people buy it from you for real money.”The best thing you could possibly say about memecoins is that they initially felt like a funny, countercultural way to participate in internet culture. They satirised a financial system that increasingly looked like a silly game to those on the outside. They encapsulated a humorous generational nihilism.According to Sander Lutz, the nation’s first crypto-focused White House correspondent: “You could consider a memecoin to be a stock in a cultural phenomenon – like Dogecoin and the Doge meme.”“Another way of defining a memecoin,” Lutz said, “is a cryptocurrency token that has an acknowledged inherent lack of value. The crypto world, outside of memecoins, is full of so many people who are trying to pitch you on tokens that are ‘actually really profound’ or ‘represent a stake’ in some kind of ‘useful network’, but are equally worthless. What makes memecoins different is that there’s none of that noise.”In other words, all crypto is bullshit, but memecoins are consciously bullshit.In their essence, memecoins distill the attention economy into a tradable asset, monetising the ebb and flow of viral internet hype. This has created a system in which the biggest attention-seekers on the planet – Logan Paul, Andrew Tate, Elon Musk, Donald Trump – can bleed their followers for profit. The more controversial they are, the more viral they are; and the more viral they are, the more their memecoins increase in value. Last year, some developers performed attention-seeking stunts on livestreams to pump their tokens, leading to animal abuse and a faked suicide.Chase Herro, the co-founder of Trump’s main crypto venture, World Liberty Financial, said about crypto: “You can literally sell shit in a can, wrapped in piss, covered in human skin, for a billion dollars if the story’s right, because people will buy it.”Most memecoins end up making money for the person who makes them as a “rug pull” or a “pump and dump”. The term “rug pull” was actually invented by the crypto community, and it works like this:First, you mint a memecoin, and make sure that you and your mates own most of the liquidity pool (the total number of coins in circulation). The size of the liquidity pool – the amount of that memecoin that “exists” – is, like everything else in memecoins, a totally made-up number.Second, you generate hype around the coin by convincing people it will “moon” (shoot up in value). This usually involves getting a celebrity, influencer or the president of the US, to promote it. People then buy the coin, thinking it will be a good investment. Law of demand means that as people buy it, the “value” of the coin goes up, and since you and your mates own the lion’s share, you get richer.Then, at a time known only to you, the creator of the coin, and other insiders, you “pull the rug”, selling off all your stock at the newly high price. You make money, and the value of the coins bought by the masses you manipulated shoots back down to zero. It’s basically a way to just trick people into giving you money, dressed up as an “investment”.A “pump and dump” is pretty much the same thing, but with the slight caveat that you’re doing it with a coin that already exists, rather than creating your own. You buy a cheap coin, “pump” its value by hyping it so others invest, then “dump” all your stock, selling it off at a huge profit and causing everyone else to lose their money.“It’s provably negative sum,” Gerard told me. “The only way you get money is by other people losing money.”The only people really getting rich off memecoins are influencers and their crypto enablers (people like Herro, or Hayden Davis, the guy who helped launch Argentinian president Javier Milei’s memecoin and was involved in Melania Trump’s memecoin).View image in fullscreenDespite this, the idea that trading memecoins is a good way to get rich persists on the internet. Is it theoretically possible for someone like you or me to invest at just the right time and get rich off a coin?Just as with traditional gambling, there are a tiny number of success stories, such as people like the “Moo Deng whale”, who turned $800 of Moo Deng coin (a memecoin referencing the viral pygmy hippo of the same name), into $10m.But only 0.4% of Pump.fun (the main memecoin trading platform) traders have made more than $10,000. About 0.002% have made more than $1m.Lutz told me: “There are a select number of people who’ve made quite a lot of money on these tokens, but they tend to be the same people. They tend to be people who are very well-connected, who are in specific group chats, and who have a lot of existing capital.”“You’ll always have more people losing than amounts of winners,” according to Gerard. “And the winners never shut up, so you think it’s a winning environment.”One of the main reasons people keep falling for these coins is that they think they’ve figured out the scam and invested early, before the rug pull or the dump. But this is never really the case.According to Gerard: “Crypto has been an ever-escalating series of get-rich-quick schemes, where a whole bunch of people think that they’re smarter operators than the previous operator, and generally they’re not.”Memecoin traders will often be invited to Discord and Telegram chats that are sold as “insider channels” where, according to Gerard, “they think they’ll hear about these scams before the rug is pulled – but actually they’re the suckers. Crypto is full of people who think they’re the scammer, not the sucker.”Young gullible menDespite all this, many people – especially young men – continue to invest in memecoins.Forty-two percent of men and 17% of women aged 18 to 29 have invested in, traded or used crypto, according to a 2024 Pew Research Center study, compared to only 11% of men and 5% of women over 50.“It’s no accident that memecoins are such a phenomenon among young people who have grown immensely frustrated with a financial system that, I think it’s fair to say, has failed them,” Lutz explained, “and where supposedly sure investments aren’t likely to give them returns that would give them the quality of life their parents had. Memecoins are nakedly meaningless, but there are many financial products, both in crypto and in the world of traditional finance, that may profess to have meaning, but at their core may be nearly as meaningless to young people.”This, too, is why memecoins have become popular with far-right, manosphere influencers and their fans.“It’s undeniable,” Lutz said, “that the trend in memecoin popularity among younger people – in particular young men – is part of the same trend where you’re seeing a loss of trust in institutions and a loss of confidence that traditional paths to success work out.”“These are the same tenets that have brought young men into the fold of the Maga-verse or to influencers like Andrew Tate. There’s overlap between them because they both stem from the same frustrations affecting so many young people, in particular young men, who feel more anger, bitterness, disillusionment and nihilism than a generation ago.”Some people don’t even seem to care that they’re being scammed, according to Lutz. “It’s remarkable to see the culture in these ecosystems, because someone will rug-pull a project – what you would consider to be a scam in that they’re running you out of the money – but that’s kind of an accepted practice and people are like, ‘Hey, good for them, I got screwed over, on to the next one.’”“There are too many cases to count of people who’ve lost their entire savings gambling on new coins. If you’re a gambler at a casino, there’s Gamblers Anonymous and an existing infrastructure to deal with people who are addicted to gambling. At casinos you have ‘no play’ lists in compliance with existing laws. There’s no existing infrastructure to aid people who lose all of their savings on memecoins.”Some memecoins try to claim that they’re more than just high-stakes gambling, in order to ensnare more willing buyers. These coins are often accompanied by the false promise of some kind of utility, be it “roadmaps”, “airdrops” ( free tokens given out for marketing purposes), off-chain value mechanisms, games where you can “spend” the coins, and various incomprehensible frameworks using the coin to vote or create some sort of ecosystem. The utility almost never materialises. $Batman coin promised to integrate “entertainment, gaming, and real-world utility”. Logan Paul’s $ZooToken supposedly allowed buyers to play a Pokemon-like game which never worked.The exception, the one memecoin to offer a tangible benefit in the real world, is the one sold by the president.President MemeOn 17 January, three days before his second inauguration, Trump launched his own memecoin, $Trump. At the time of writing, the coin’s market cap is over $2.5bn, spurred on by Trump offering a dinner and White House tour to the top owners of the coin, which took place last weekend.Unlike other memecoins, it offered something concrete: access to the president. This made its value soar.View image in fullscreenRight now, only 20% of the token’s total “supply” is currently in circulation. The remaining 80% is supposedly held by Trump and his business partners.Trump and his business partners are supposedly only allowed to sell off their holdings in $Trump when they are “unlocked” in tranches over time, according to their own made-up rules. As Gerard puts it: “They own the fake money, but they can’t sell it until it’s unlocked in tranches. Note that the limits are artificial. I mean, they could just ‘print’ more.”But already, “58 wallets have made over $10m each from President Donald Trump’s meme coin, totaling $1.1bn in profits”, while “764,000 wallets of mostly small holders have lost money on $TRUMP”, according to CNBC.Gerard said: “A lot of his own fans bought the coin. They thought it would be a fabulous success because Trump is a ‘business genius’. He ripped off his own fans.“The coins’ creators and original sponsors get free $Trump coins and they can dump those on the market at will every time a tranche is released. And they do. And are people ever going to make money on those $Trump coins they bought? Probably not. The money goes to the Trump family, and that’s the direction it was created to make it go in. So yeah, it’s a memecoin dump. He’s just dumping the coins on the suckers and it’s a textbook case.”Trump and his business partners also profit in transaction fees every time $Trump is traded, so far earning $100m.Whether this is all legal or not is up for debate, but soon after launching his own memecoin, Trump replaced the head of the regulator responsible for memecoins, the SEC, with a pro-crypto appointee.Lutz said: “In the last few months, the SEC has either dismissed or withdrawn all of its crypto-related lawsuits against every big crypto company in the United States and closed all of its investigations. I mean, the SEC is hosting roundtables almost every week with crypto companies, asking how it can be more helpful to the industry.”Trump has also enthusiastically supported a legal framework for stablecoins. Stablecoins are theoretically stabilised in value by being “pegged” to the value of another asset like the US dollar, but in reality have often become “de-pegged” and therefore unstable.Right now, the Stable Bill and the Genius Bill, which reference Trump calling himself a “stable genius” in 2018, are trying to make their way through Congress. They pave the way for the US government to use stablecoins to pay everything from housing grants to social security payments. And Trump himself just so happens to have a stablecoin of his own – through the World Liberty Financial company – which would shoot up in value if these bills pass, earning his family trust potential billions.The Trump family has a claim on 75% of net revenues from World Liberty’s token sales.“It is absolutely the government’s job to stop mis-selling of investments – that’s why ordinary retail mums and dads cannot buy into binary options,” Gerard said. “It’s absolutely open slather for crypto in the US now. This is really bad. A lot of people are going to get skinned. It’s going to be terrible.”The advice? Stay awayIs there any cause for hope? According to Gerard, while it may appear everyone is investing in memecoins, this is mainly exaggerated by the media. Sure, lots of young people have dabbled, but only the real crypto geeks are actually buying the things.“The good news is most people are not falling for it. And our evidence for this is the retail dollar trading volumes at Coinbase, the largest crypto dollar exchange. Coinbase happens to be a public company so that means they have to give accurate numbers to the SEC. So they disclosed their retail trading volumes. They’re down 17% in the first quarter of 2025 from where they were in December 2024. They’ve gone down with the Trump coin regime. That gives hope.”As far as my own memecoins go, even the Tate fans who invested appear to have become aware of the scam they fell for.Shortly after the stream went dead, I received an email from a Tate follower titled: “MATT SHAE WE NEED YOUR HELP.” He, along with other Tate fans, claimed they were victims of Tate rug-pulling them. They wanted me to help spread awareness of their community’s plight – by publicizing a new memecoin they had minted called $RRT (Real Rugger Tate).I didn’t write back. More

  • in

    The chaos Elon Musk and Doge are leaving behind in Washington

    Elon Musk formally exited his role in the Trump administration on Wednesday night, ending a contentious and generally unpopular run as a senior adviser to the president and de facto head of the so-called “department of government efficiency” (Doge). Though he promised efficiency and modernization, Musk leaves behind a trail of uncertainty and reduced functionality.The timing of Musk’s departure lines up with the end of his 130-day term limit as a “special government employee” but also plays a part in an effort by the billionaire to signal a wider shift away from Washington as he faces backlash from the public and shareholders. Musk has recently made a show of refocusing his efforts on his tech companies in interviews, saying that he has spent too much time focused on politics and plans to reduce his political spending in the future.As Musk moves on, he consigns a mess of half-realized plans and gutted agencies to his acolytes installed in key positions across the federal government. His departure throws Doge’s already chaotic impact on the government into an even grayer limbo, with questions over how much power the nebulous taskforce will have without him and who, if anyone, might rebuild the programs and services it destroyed.Doge’s debrisMusk’s initial pitch for Doge was to save $2tn from the budget by rooting out rampant waste and fraud, as well as to conduct an overhaul of government software that would modernize how federal agencies operate. Doge so far has claimed to cut about $140bn from the budget – although its “wall of receipts” is notorious for containing errors that overestimate its savings. Donald Trump’s new tax bill, though not part of Doge and opposed by Musk, is also expected to add $2.3tn to the deficit, nullifying any savings Doge may have achieved. Its promises of a new, modernized software have frequently been limited to AI chatbots – some of which were already in the works under the Biden administration.The greater impact of Doge has instead been its dismantling of government services and humanitarian aid. Doge’s cuts have targeted a swath of agencies such as the National Oceanic and Atmospheric Organization, which handles weather and natural disaster forecasting and plunged others such as the Department of Veterans Affairs into crises. Numerous smaller agencies, such as one that coordinates policy on homelessness, have been in effect shut down. Doge has brought several bureaus to their knees, with no clear plan of whether the staff Musk leaves behind will try to update or maintain their services or simply shut them off.In one early example of its cuts and the holes in government they have created, Doge targeted the government tech group that partnered with federal agencies to provide tech solutions, known as 18F.When Doge staffers entered the General Services Administration agency that housed the 18F Office, former employees have said they appeared to fundamentally misunderstand how the government operates and the challenges of creating public services.Former 18F director Lindsay Young, who is now part of a legal appeal that contends the firing of 18F violated legal requirements, is concerned that Doge’s cuts will have long-lasting effects on government functions.“In government, it’s just so much easier to tear things down than it is to build things up,” Young said.The mass layoffs at the Department of Health and Human Services represented a similar loss of institutional knowledge that Doge does not seem intent on replacing.Carl Tobias, a law professor at the University of Richmond who has been tracking Doge’s cuts, used the agency’s tobacco unit as an example, which was severely affected by the cuts. “The loss of so much expertise, especially in the healthcare area will mean that more Americans will become sick or die earlier than they might have,” he said. “It also may take many years and great expenditure of resources to restore that experience and expertise.”Musk’s gutting of USAid, formerly the world’s largest single provider of humanitarian aid, is one of the starkest examples of the disarray and harm that Doge’s cuts have caused. The US canceled approximately 83% of USAid programs, imperiling services around the world aimed at humanitarian assistance and disease prevention. One pioneering program under USAid, Pepfar, which coordinates the US HIV/Aids response, has seen its services reduced worldwide and its staff left in confusion over what they can still do for people who relied on their organization. Doge’s cuts to the program have likewise threatened the rollout of a new anti-HIV drug that researchers have hailed as a “miracle” for its effectiveness.As Musk returns to Tesla and SpaceX, the agencies he laid waste to are left to pick up the pieces.skip past newsletter promotionafter newsletter promotionThe Doge staffers still holding sway in governmentWhile Musk is returning to his tech empire, many of the former employees and inexperienced young engineers whom he hired to work for Doge are set to remain part of the government. One of the largest questions about what Doge’s future looks like is whether these staffers, some of whom gained near unfettered access to the government’s most sensitive data, will retain the same powers they enjoyed under Musk.Doge staffers, such as billionaire investor and Musk ally Antonio Gracias, have embedded themselves at key agencies such as the Social Security Administration and Federal Aviation Administration. They have worked as a sort of parallel government task force, operating with a lack of transparency as their attempts to access databases and migrate data has caused disarray and technical problems. Whether Trump and agency heads allow them to continue on with carte blanche remains unseen.Already at least two prominent Doge staffers have followed Musk to the exit. The billionaire’s longtime top lieutenant Steve Davis, who was running the day-to-day operations of Doge, left his role on Thursday. Spokesperson Katie Miller, wife of Trump’s deputy chief of staff Stephen Miller, also left the White House to work full-time for Musk, according to CNN.Some of Musk’s dictates have already been rolled back since he left Washington earlier this month, including a much-derided mandate that required federal employees to send a list of five things that they accomplished each week. The weekly email, which was initially introduced with the threat of being fired for non-compliance, was largely ignored and viewed by many as pointless busywork. On Wednesday, the Pentagon formally announced that it would halt the practice.Doge is not being left leaderless, however. Taking over for Musk, according to the Wall Street Journal, is Christian nationalist and key figure in the rightwing Project 2025 manifesto Russ Vought. A longtime believer that the president should have sweeping executive powers, Vought has said that he wants federal employees to be left “in trauma” and to slash federal funding.Musk has praised Doge’s work and pledged that it will continue without him, and as recently as this week is still removing veteran officials it disagrees with from federal agencies. Even at reduced numbers, Musk’s allies also still have access to immense amounts of sensitive and confidential data they are reportedly intending to use to surveil immigrants.What seems farther away than ever in the chaos, however, is Musk’s promise to make the government more efficient and better serve the public.“You don’t need that many people to decide to just cut things,” 18F’s Young said. “But if you actually want to build things, that takes thought. It takes effort.” More

  • in

    Musk is pivoting from DC and Doge’s failures – and wants investors to know

    Elon Musk really wants the public – and investors – to know that he’s leaving Washington DC behind.In a series of interviews and social media posts this week, Musk has criticized Donald Trump’s marquee tax bill and emphasized his recommitment to leading SpaceX, Tesla and the artificial intelligence company xAI. The world’s richest person claimed that he was back to working around the clock at his companies – to the point of sleeping in conference rooms and factory offices once again.Musk has been telegraphing a pivot back to his businesses for months, but in recent appearances, he has repeatedly distanced himself from his unpopular stint in Washington while proclaiming that his new sole focus is his tech empire. It is a drastic turnaround for Musk, who spent most of the last year constantly at Trump’s side promoting far-right ideology online, appearing on stage at political rallies and pouring hundreds of millions of dollars into the Republican party.The shift, which comes amid public and investor backlash against Musk’s political ambitions, was apparent this week as SpaceX launched and lost control of its Starship prototype rocket. Musk gave a round of media appearances to the Washington Post, Ars Technica, CBS News Sunday Morning and a YouTube aerospace influencer, all of which featured him emphasizing his dedication to his companies or attempting to explain away the shortcomings of his heavily criticized “department of government efficiency”.“The federal bureaucracy situation is much worse than I realized,” Musk told the Washington Post on Tuesday. “I thought there were problems, but it sure is an uphill battle trying to improve things in DC, to say the least.”Musk additionally told the Post that Doge had been turned into a “whipping boy” that was criticized for anything that went wrong under the Trump administration. In Ars Technica, Musk admitted: “I think I probably did spend a bit too much time on politics.”Bashing Trump’s tax billThe turn from Trump’s self-appointed “first buddy” back to the familiar territory of space travel and tech has taken place as Doge faces numerous legal challenges and remains widely unpopular.Although Musk successfully seeded the government with his allies and helped gut regulators that would oversee his companies, Doge’s central promise to slash $2tn worth of fraud and waste has been an obvious failure. Doge’s cuts, while devastating to government services, humanitarian aid and the federal workforce, have amounted to little in terms of actual budget savings. Much of the savings it has claimed on its “wall of receipts” have also turned out to be false, including the cancellation of an $8bn contract that in reality was an $8m contract.Musk’s answer for Doge’s shortcomings appears to be casting the blame on some of his familiar foes: politicians and bureaucrats. In doing so, however, he has increasingly split with the Republican party – though notably stopped short of any criticism of Trump himself.Musk’s split with Congressional Republicans has been starkest on X, the social media platform that he owns. Musk’s posts have fully leaned into the narrative that Doge’s actions were successfully reducing waste, but that Congress hamstrung its operations through actions like approving Trump’s tax bill, which is expected to add $2.3tn to the deficit.Musk told CBS that he was “disappointed to see the massive spending bill, which increases the budget deficit …  and undermines the work that the Doge team is doing”.Now, Musk claims, he will focus on saving humanity through technologies like self-driving cars, interplanetary rockets and humanoid robots – exactly the products his companies need investors to believe in.“I have come to the perhaps obvious conclusion that accelerating GDP growth is essential,” Musk posted on Friday in response to a thread calling the GOP bill “disastrous” and demanding term limits on Congress. “Doge has and will do great work to postpone the day of bankruptcy of America, but the profligacy of government means that only radical improvements in productivity can save our country.”In a separate exchange, he replied to a conversation between two users with large followings who routinely praise his leadership and business acumen.“I think Elon is realizing that, despite the promises made by the new administration and a Republican-controlled Congress – and all the campaign platforms they ran on – the current incentive structures and entrenched special interests in government make it nearly impossible to enact any meaningful, long-term changes to address the many big issues we face,” one pro-Musk account posted.skip past newsletter promotionafter newsletter promotion“DOGE has done incredible work, but the GOP has failed to actually implement any of the cuts,” another prominent Musk-booster replied.“Yeah (Sigh),” Musk responded to the thread.Musk goes back to selling the futureWhat became clear throughout Musk’s time in Washington was that the public did not enjoy seeing him and many in the Trump administration did not like working with him. Numerous polls showed his overall popularity declining even as people supported the premise of reducing government inefficiencies. Musk’s prominent involvement in a Wisconsin supreme court election intensified opposition to his influence, while international demonstrations made him the face of the administration. Musk also found few friends within the Trump administration, with report after report of heated clashes with senior officials and some Republican political operatives warning his brand had become too toxic for the party.The pushback against Musk affected his businesses, causing Tesla sales to plummet to the point that the company’s board reportedly began considering replacing him as CEO. While Musk denied those claims, in recent weeks he has very loudly reaffirmed his dedication to leading his businesses.“Back to spending 24/7 at work and sleeping in conference/server/factory rooms,” he posted on Saturday. “I must be super focused on 𝕏/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.”While only a few weeks ago Musk’s posts on X were a nonstop stream of invectives against Democrats, fringe theories about immigration and demands to gut the judicial system, his online output has also changed. His posts this week have been heavily focused on SpaceX’s ambitions to go to Mars and Tesla’s self-driving car program, stopping only occasionally to promote attacks against “the woke mind virus” or feud with the government of his native South Africa.As Musk moves away from full-time politics and tries to win back investor confidence, he has also doubled down on his habit of making grandiose predictions of how his technologies will transform the world. Echoing a long list of previous claims that have missed deadlines and so far failed to come to fruition, he has promoted new endeavors like Tesla’s humanoid robots as crucial to the future of civilization.“Once you have humanoid robots, the actual economic output potential is tremendous. It’s really unlimited,” Musk said on stage at the Saudi-US Investment Forum on 13 May. “Potentially, we could have an economy 10 times the size of the global economy, where no one wants for anything.”Rather than dwell on a year of missed targets and intense backlash, Musk is back to selling a future where anything is possible. More