Biden’s Twitter Blunder Raises Concerns Over Government Understanding of Cryptocurrency
The president of the United States of America, Joe Biden has been receiving a lot of criticism from within the crypto community after he tweeted a picture that suggested some of crypto's richest investors are using tax loopholes. The tweet has been proven wrong by many analysts and even the community notes function on Twitter that allows users to point out when someone is tweeting misinformation.
We don't have to guess what MAGA House Republicans value. They're telling us. pic.twitter.com/BM6JGMEFeq
- President Biden (@POTUS) May 9, 2023
As you can see the tweet is disproven by the fact that capital gains tax must be paid in the states if an investor sells crypto and there is no evidence of these tax loopholes. One of Dogecoins creators was one of the respondents to this tweet saying he gave Biden's government more money in taxes than he earned from crypto.
There have been plenty of others in the crypto community ridiculing the tweet and using it as an excuse to pile on but it is also very worrying that the president of the United States would post a tweet like this that clearly has not been well-researched at all.
One could take a positive view and say it's just election fodder and pandering to voters but it points to a much wider trend in American politics in the last few months and that is politicians taking a negative line on cryptocurrencies.
This tweet could be more thought out than many analysts think and it in fact is drawing a line in the sand. In this upcoming election in the USA, crypto could be used as a lightning rod, and if the Democrats and Republicans take different sides that would be bad news for the market.
Politics in America is already too partisan, the last thing the crypto market needs is to be dragged into a war here, it will likely end up with a lot of false information on either side about the market being thrown out to score points.
Crypto already looks like it is on a full-on collision course with the SEC when it comes to regulation so more politics being thrown into the mix would be very bad news indeed. Coinbase is already in talks with Saudi Arabia about moving its base after its CEO, Brian Armstrong, expressed his frustration about more regulation talk coming from the SEc and other government branches.
We are making the prediction now that this sort of talk will not be going away anytime soon and will likely just be revamped the closer we get to the election next year. While this is bad news in the short term Coinbases flirtation with a more unregulated market in the middle east could actually be the way forward for crypto.
It is a difficult time for investors that pay attention to the news, it is clear that there is so much potential for volatility. One thing they need to do is stay away from Bitcoin (BTC) and other large altcoins that have a decent price. The SEC is on the hunt to categorize Ripple (XRP) and many similar coins as securities which would allow them to regulate them much more.
There is one section of crypto though that seems to stand alone and play by its own rules and that's meme coins. These never seem to obey market trends and instead due to their volatility seem to have a life of their own.
They were already having a strong 2023 then an explosion a couple of weeks ago has made them the focus for most crypto enthusiasts. Pepe coin (PEPE), an unheralded token, pumped by 20,000 percent out of nowhere and made people rich overnight. Since then investors have been obsessed with finding which coin could be next.
We have been carefully monitoring this trend and think that Spongebob Token ($SPONGE) and AiDoge (Ai) represent two meme coins that look set to guarantee massive returns to those that invest early enough.
In $SPONGE we have a coin that can replicate what PEPE did for its investors. PEPE's success, while it seems random, may have been caused by the fact it is a classic meme, one of the early internet's first iterations of memes. Spongebob Token represents a meme that is also vintage but has lasted the test of time due to its popularity.
What makes it even more likely to pump is it is a meme synonymous with crypto culture. If you were to visit any crypto Reddit discussion or crypto Twitter thread you will not be long scrolling before you come to the meme.
Finally, while PEPE looks like it is on the way down there are some real indications that $SPONGE will take over. A listing at Uniswap with total liquidity of $10.27 million and a total market cap of $35.39M are strong signs that could encourage whales to start buying in.
Add to this a recent string of exchange listings that have just been announced including Poloniex, LBank, CoinW, and Toobit and you have the perfect recipe for a coin that is about to pump.
The other meme coin AiDoge (Ai) offers something much better. While $SPONGE offers a chance at overnight success AiDoge represents a coin that will likely pump to the top of the meme coin ladder over time.
The project will introduce the very first meme-to-earn concept coin and another first is it will also be the only AI meme-generation platform. Users will be able to earn Ai just for creating memes on their site, however, the competition element makes it much more fun.
A voting system will decide which memes are best and in turn, which earn the native currency, the best memes will also gain added exposure on the top pages of the site. It will be easier than ever to make these memes too as the AI technology will know everything about crypto so will help users with their creations.
Biden's tweet should be considered a red flag but we are worried many are not seeing it as this. However false the information may have been it just shows as the stalls are being set out for next year's election that crypto could get caught in the crosshairs.
While we duck and cover there is no better bolt hole than meme coins. As we said they tend to exist in their own separate market and go mostly unaffected by macro factors like regulation. $SPONGE and Ai are the two best investment opportunities right now as both have the chance to replicate the recent success of PEPE.
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