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Crypto Old-Head Otoh Talks Casascius Bitcoins, Tax Havens and Old Friends

Published

8 months ago

19 May, 2024

Crypto Old-Head Otoh Talks Casascius Bitcoins, Tax Havens and Old Friends

It’s quite likely that Otoh has lost more bitcoin than most people will ever hold. An early bitcoin investor, Otoh, a pseudonym that stands for “on the other hand,” has many lessons to share about finding opportunities and making one’s own luck.

Otoh is a speaker at this year’s Consensus festival, in Austin, Texas, May 29-31.

Scheduled to speak on stage at Consensus 2024, in Austin, Texas, alongside crypto luminaries like Litecoin creator Charlie Lee and BTCC and Ballet founder Bobby Lee, Otoh is known among the early crypto crowd for his massive holdings of physical bitcoins – a.k.a. Casascius coins.

“I’ve never sold any. I’ve just been accumulating them as my version of a cold storage,” Otoh told CoinDesk in an interview, discussing his recent auction of over 200 worth of physical bitcoins in what was the Heritage auction firm’s first crypto sale.

Casascius coins, created by Mike Caldwell (who went by Casascius, an acronym for “call a spade a spade,” on Bitcoin forums), were a solution to spending bitcoin in face-to-face transactions by embedding a Bitcoin private key in a metal coin.

The last ones were made in 2013 after the Financial Crimes Enforcement Network told Caldwell that he was operating an unlicensed money transmitter business. There are only about 90,000 Casascius coins in circulation, of varying denominations, though other manufacturers including Bobby Lee created their own versions.

A part of Bitcoin lore and its physical history, Casascius coins are now sought after by collectors (some are so valuable that they have to be declared to U.S. Customs when entering the country). In some sense, these coins are the most long lived and recognizable image of the purely a digital currency.

“It seemed the right time to let some of the physical coins go,” Otoh said. “Let other people look after them and enjoy having them.”

Of course, part of the danger of bringing bitcoin into the physical realm is that it makes the assets as easy to steal as a $20 note from mom’s purse – and unfortunately, Otoh thinks he was the victim of a theft about a decade ago. He recounted a story of receiving a shipment of coins where the box had been obviously tampered with.

The 55 BTC missing from his collection were worth about $20,000 at the time they were purchased, and are now worth about $3.5 million, “which is a huge sum in most anyone’s book,” he said. “I’m very happy to offer a half a million dollar reward for their return. And unconditionally, I wouldn’t want to press charges if someone decided to give them back to me,” he added.

Story continues

CoinDesk caught up with Otoh ahead of Consensus to discuss his recent auction of vintage physical bitcoins, early investments in other cryptocurrencies like Ethereum’s initial coin offering and how he manages his wealth by diversifying into properties around the world and residing in a tax haven in the British Channel Islands.

Could you give a sense of what you’re talking about at Consensus?

I’m on the panel about physical bitcoins. I’m basically a fill-in for Mike Caldwell, who invented Casascius coins, who couldn’t make it unfortunately.

Oh, that’s so cool.

Would be nice to meet him one day. Bobby Lee and Charlie Lee asked if I’d be a substitute for the gap on the panel because I am a large investor.

Do you remember buying your first coin?

Yes, very much. It was at the London Bitcoin Conference in 2012. I had just started on bitcoin in the summer of 2011, around July. I remember at the time I met with some German guys – there were all these privacy advocates wearing masks who had a whole bunch of physical coins to sell. I believe it was 10 regular bitcoins and a 10 bitcoin unit piece. The price at the time, with the premium and everything, was $12 a bitcoin.

What does Otoh stand for?

It’s an acronym for “on the other hand.” That’s how it’s usually used. I just adopted it because I find myself, a lot of the time, not necessarily being argumentative but looking at different viewpoints. I thought bitcoin and crypto is also a different way of looking at finance. Nearly everyone had a nickname on the BitcoinTalk forum. That’s the way that came about, but I didn’t give it much thought at the time. It was just the first thing that came into my head.

Are there any particular memories of the early days of Bitcoin that you remember fondly?

Fondly? Yes, that must be getting my first coin – that was a big deal. At the time people were still giving away free coins. By the time I joined, word had spread, and it often wasn’t a full coin anymore, just a fraction of a coin, but it was still fun to have my own address and then be sent this little token amount of coins to see how it could function.

At the time I was traveling between Europe and the States quite a bit and also buying and selling in Europe and the States. With bitcoin, it suddenly became really easy to send money.

A few of the other memories are more traumatic. It’s very easy to mess up. As you learn as you go.

You’ve probably lost more bitcoins than most people have today.

If you count the ones that were stolen off me. Like that list I just gave you that I put together from nine years ago. Somewhere out there there is a lost, stolen treasure of a few million dollars.

What do you suspect happened there? A rogue employee?

I think it is most likely a rogue U.S. Postal Service employee who just used a box cutter and saw something that looked promising. He probably thought it was Gold Eagles or Silver Eagles or something. I don’t know what the reaction would be, whether they were disgusted to see it was just some weird tokens and threw them away or whether they thought “Oh, this looks cool.”

I’ve always hoped that I’d have a brainstorm and remember if I’ve stashed them away somewhere. But it doesn’t make any sense – I’ve got everything else very well looked after and itemized. A friend of mine whose house I had been staying in at that time remembers receiving a box that was cut open and resealed.

Is there anything that you want to say about the OTOH Collection of Physical Cryptocurrency?

Well, after a decade, I decided it’s time to sell. I’ve never sold any, I’ve just been accumulating them as my version of a cold storage. Now that I’ve sold all my digital crypto, it seemed the right time to let some of the physical coins go. Let other people look after them and enjoy having them.

You’re also a real estate investor. At this point, do you think it’s better for people to invest in bitcoin or physical property?

I think it’s a mixture of the two. Bitcoin is high-risk, but potentially it has very high returns. And property is a hedge. It’s a safety net. It’s also very hard to steal, whereas bitcoins can be very easy to steal.

If I was still in my 20s, then I’d probably be keeping a much higher percentage in crypto, but nowadays I like the security of having a bunch of properties and enjoy renovating them.

Are you interested in other digital assets?

In the past I pretty much have been. I was the largest holder of litecoin {{LTC}} when it was a few cents. I think I had roughly 600,000. It was the first altcoin, and was quite controversial with Bitcoin Maximalists. They disliked it intensely because they thought it withdrew funds and interest away from Bitcoin. But I was quite convinced from the first time I saw it, it’s impossible for anything to exist without its opposite.

And so that paid out very well. After Litecoin, I moved into Dash and was the largest holder of those and helped develop the project in some ways. And then I kind of lost interest and moved onto other things. I was highly recommended Ethereum at a Dutch conference and participated in the ICO. I got 100 bitcoins worth, which was about 10,000 Ethereum. Unfortunately, I sold those way too soon. I made 100% or 200% profit, but I sold them for something like $2. So I will rue the potential $800 million there. Otherwise I’m pretty much fully bitcoin nowadays.

The way you discussed bitcoin earlier in the conversation you discussed it mostly as a method of transaction. Are you convinced by the arguments that it has properties like gold?

I think it is excellent as an investment. I think that’s its main use at the moment. It’s perhaps the best performing investment in history, and it continues to grow. It is a trillion dollar asset class, and a great way to store value. Satoshi viewed it in the beginning as a hedge against the degenerate behavior of central governments and banks abusing the currencies that we will have to use every day. It’s much more versatile than gold, in that it can be transferred pretty much anywhere around the world from anyone to anyone, instantly, with no armored trucks or anything and next to no fees. It’s quite miraculous really, that it’s come into existence. It’s still very early days, but it really has transformed the world in many many ways.

What have been your biggest purchases made with crypto?

I must admit I’ve done very little with buying and selling with crypto. I go from fiat currency into crypto and then back out to fiat currency.

Capital gains taxes make spending crypto sort of annoying, to some extent.

For many people it would, yes. I’m fortunate that I am based in a tax haven where there isn’t any capital gains tax. I make sure that I’m physically there when I cash any out. So I don’t have that issue. There’s also no income tax.

You mentioned you have a home in California. How do you balance the tax situation there, where state tax authorities may want to charge you income tax?

I’ve got homes in many countries around the world; it doesn’t mean I’m suddenly a tax resident. I make sure I count my days very carefully – I don’t overstay. As long as I’m not here for more than six months of the year, I won’t be liable for any tax. And I don’t do any business here.

Do you mind if I ask what tax haven?

It’s a little island in the British Channel Islands called Sark. It’s a three square mile island and fairly unique in the world for having next to no tax. You just pay a small proportion of your property tax as a contribution to the kind of upkeep of the island. The main thing about it that’s attractive is you don’t have to keep records of what you’re doing, which would have been hugely complicated when I was converting altcoins into bitcoin and then into other alternative currencies and then back into dollars. I do not pity the people who had to try and keep these records and then present them to a tax authority.

Did you give up your passport?

No, I still keep a U.K. passport. I could trade it in for a Guernsey passport, which is the main island in the channel. It’s really just a clone of the U.K.. It has all the same benefits, but I haven’t bothered to do it. It doesn’t really matter what nationality I have. It really only matters where I’m a fiscal resident.

How would you describe your political views?

Well, like many people, with age I probably have become a little more conservative in some ways. But I’m pretty much a capitalist; I believe that’s a good way for people to behave. I’m not overtly political. I was probably quite anarchist in the past. I just adapt to whatever the majority believes. I am not trying to change things myself in a big way – I’m pretty apolitical.

Is there anything more you want to say about the possible theft of those Casascius coins?

I believe it was 55 bitcoins in value, something like $3.5 million at present value. At the time they were lost or taken they were only worth about $13,000. Still a lot but nothing compared to right now. So I’m very happy to offer a half a million dollar reward for their return. And unconditionally, I wouldn’t want to press charges if someone decided to give them back to me.

One day, I expect they’ll turn up unless they’ve gone on a destructive route somehow. Everyone can see the addresses; I was really surprised when I checked a couple of weeks ago that they had never been moved and that they hadn’t been peeled. So they’re probably out there somewhere.

Last question, what are you looking forward to at Consensus?

Well, meeting Bobby Lee and Charlie Lee again. They both in their own ways have been very instrumental in helping me with my crypto journey. Charlie Lee by inventing Litecoin, where I did extremely well – probably even better than I did with bitcoin. And Bobby Lee for having BTCC (also known as BTCChina) and the physical coins. He produced physical coins just like Mike’s Casascius coins. I have still got all my BTCC coins. That will be a future auction.

I’ve had quite a few adventures with the physical coins. I had to physically go to Shanghai to pick them up, as they couldn’t be shipped at the time. That was an adventure in itself.

There’s other people that I know from forums and interacting with on the internet who I’m sure it would be nice to see again in person if I’ve met them at other conferences. It’s a chance to put people together and exchange ideas that if one just sat behind a computer at home, perhaps wouldn’t happen.

So I’m looking forward to it. It’s quite exciting. It’s my first visit to Texas.

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We are the editorial team of CoinFlix, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on CoinFlix, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Is Shiba Inu a good buy while trading below $0.01?

Published

6 months ago

29 July, 2024

CoinFlix Staff

Is Shiba Inu a good buy while trading below $0.01?

Advances in artificial intelligence (AI) technology and innovative new drugs in the weight loss market were major contributors to stock market gains for much of the past year.

While investors have reaped generous returns from owning mega-cap technology and some pharmaceutical stocks, it’s human nature to wonder what else is out there and where additional value can be found.

Investment alternatives how cryptocurrencies have gained massive popularity over the past decade or so — and one of the most curious cryptocurrencies, Shiba Inu (SHIB 2.08%), it may seem very tempting, as trades below a penny.

Let’s take a look at the Shiba Inu and find out if it’s a good buy right now.

What is Shiba Inu?

The first thing to know about cryptocurrency in general is that not all cryptocurrencies are created equal. Some of the most popular cryptocurrencies out there include Bitcoin, EthereumIt is Solana. While each of them still carries some degree of speculation, all of these currencies have achieved some form of real-world application.

For example, Bitcoin is now accepted as a means of payment in some online stores and retail establishments. In addition, many projects that revolve around non-fungible tokens (NFT) tend to rely on Ethereum, Solana, and other major cryptocurrencies.

Shiba Inuin turn, is in a totally different category.

That is, Shiba Inu is often affiliated with Dogecoin. Although Dogecoin has experienced some fleeting volatility in the past — largely thanks to some irreverent support from high-level personalitiesincluding Mark Cuban and Elon Musk — cryptocurrency is largely seen as a joke.

In investing, non-serious investments tend to fall under the category of a meme. Shiba Inu is no exception here. With little to no real-world utility, Shiba Inu is widely seen as a meme coin.

Image source: Getty Images.

Should you buy Shiba Inu while it is selling for less than a penny?

Shiba Inu’s price dynamics closely follow the rules of supply and demand. At the moment, Shiba Inu has a total supply of 589 trillion tokens, and the coin is trading at just $0.000017.

With such an abundance of Shiba Inu coins available, the asset is anything but scarce. In other words, pretty much anyone can buy Shiba Inu if they want to. For this reason alone, it doesn’t have much appeal for investors looking to spot a profitable opportunity.

Given the lack of demand, it is not surprising to see that the Shiba Inu is trading for less than a penny. Unless a large number of institutional investors invested billions of dollars in purchasing Shiba Inu, I can’t imagine a world where the currency starts to gain traction in the market.

Since cryptocurrency is still considered a speculative investment, I consider it highly unlikely that large fund managers will buy Shiba Inu en masse.

Instead, I think Shiba Inu will continue to be the favorite among a small group of retail investors — specifically, inexperienced traders who follow the advice of online influencers or fake financial gurus.

If you are looking for exposure to cryptocurrency but can’t decide which coin to buy, there are many cryptocurrency stocks that could serve as a decent proxy. Companies like Coinbase, Robinhoodand even Microstrategy each offers investors some exposure to the cryptocurrency landscape, but with some degree of isolated risk.

So while Shiba Inu may seem cheap, there are many reasons why the coin’s value remains depressed. I think investors are better off moving on from Shiba Inu and considering more established cryptos or individual stocks operating in the crypto space.

Adam Spatacco has positions in Coinbase Global. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Ethereum, and Solana. The Motley Fool has a disclosure policy.

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AI meme Raboo and crypto newbie ZRO

Published

6 months ago

29 July, 2024

CoinFlix Staff

Two coins outperforming DOGE: AI meme Raboo & crypto newbie ZRO

Disclosure: This article does not constitute investment advice. The content and materials presented on this page are for educational purposes only.

Raboo and ZRO are outperforming Dogecoin with unique features and growing investor interest.

In the evolving cryptocurrency market, Raboo (RABT) and ZRO are emerging as standouts, gaining significant traction among investors. These new coins are not only on the rise but are also outperforming the established meme coin, Dogecoin (DOGE).

Raboo’s unique integration of AI into meme culture and ZRO’s fresh approach are attracting a growing community of enthusiasts. This article delves deeper into the unique features of Raboo and ZRO, exploring how they are shaping the future of the crypto landscape and why they may offer compelling investment opportunities. Read on to discover the potential of these rising stars.

DOGE: The veteran memecoin

DOGE has a market cap of over $19 billion as of July 2024 and in this circulation, there is a supply of 145 billion DOGE. The price of the coin jumped 6% in the last 7 daysechoing the trend — increased investor interest and market recovery.

Although Dogecoin was initially created as a joke, it has still held up quite well, probably due to the fact that it has had a huge community since its inception and periodic endorsements from important people like Elon Musk, thus keeping this cryptocurrency relevant and moving.

Dogecoin’s current rise could also be driven by events such as increased institutional adoption and favorable developments around the Dogecoin Foundation. These events are generating more interest, with a halving likely in 2025. Analysts project that Dogecoin will trade within the $0.15 and $0.25 range in the near future.

ZRO: A Rising Star in the Crypto Universe

ZRO is the native token of LayerZero, a robust and promising newcomer to the cryptocurrency market, which has been attracting attention recently for its intrinsic value and recent market performance. LayerZero is a cross-chain interoperability protocol that allows blockchains to communicate seamlessly with each other, literally being a “blockchain of blockchains.” Ultra Light Nodes (ULNs) power this new development, verifying transactions and messages in a way that brings security and efficiency to chains like Ethereum, BNB Chain, and Avalanche. ZRO is up over 80% in the last 30 days, reaching $4.63 with a market cap of over $509 million.

While Dogecoin has been showing improved performance in the crypto scene recently, ZRO’s growth is very fast. Its strategic partnerships, such as the latest cooperation with Flare Network, extend it to 75 blockchains, greatly increasing its market position.

Analysts are bullish on ZRO and are pricing in long-term growth in the forecasts. While Dogecoin enjoyed community support and some celebrity endorsements, the focus that ZRO has placed on its technology development and practical applications gives it a distinct advantage in this increasingly competitive cryptocurrency landscape.

Raboo: Changing Memecoins with AI

Raboo (RABT) has quickly emerged as a significant player in the memecoin market, leveraging advanced AI technology to stand out from its competitors. The token’s unique approach includes a “Post-to-Earn” platform where users are rewarded for creating and sharing content, fostering dynamic community engagement. Raboo’s presale has been particularly successful, with tokens currently priced at $0.0048, representing a significant 233% increase since the presale began.

Despite Dogecoin’s established presence and recent price stability, Raboo’s rapid rise is remarkable. Analysts predict that Raboo could outperform Dogecoin, with expectations of a 100x return upon launch. This optimism is driven by Raboo’s unique technological capabilities and the growing appeal of its SocialFi features, which set it apart from more traditional memecoins.

Conclusion

Raboo and ZRO are emerging as strong contenders in the cryptocurrency market, outperforming the established Dogecoin with their unique features and strong community engagement. Raboo, with its AI-powered meme creation and “Post-to-earn” platform, offers a unique investment opportunity, especially for those looking to diversify their portfolios in the dynamic memecoin sector. ZRO’s focus on cross-chain interoperability also positions it well for future growth.

These developments highlight the evolving cryptocurrency landscape, where technological creativity and community-driven models are becoming increasingly important for success. Investors should consider Raboo for its high potential returns and innovative features.

For more information, visit the Raboo Pre-Order Website or follow the project at Telegram or X.

Disclosure: This content is provided by a third party. crypto.news does not endorse any products mentioned on this page. Users should do their own research before taking any actions related to the company.

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The Rise of Cryptocurrency ETFs: How to Invest in Digital Currency Without Buying Coins

Published

6 months ago

28 July, 2024

CoinFlix Staff

The Rise of Cryptocurrency ETFs: How to Invest in Digital Currency Without Buying Coins

The introduction of spot cryptocurrency ETFs offers a new and easy way for investors to gain exposure to digital currencies.

For much of crypto’s existence, those interested in purchasing digital assets would have to do so through cryptocurrency exchanges. But now, that’s starting to change.

If you’ve been hesitant to dive into crypto due to what can sometimes be a daunting and technical task when navigating cryptocurrency exchanges, now might be the perfect time to explore the new spot exchange-traded funds (ETFs) available to investors.

Image source: Getty Images.

What are spot ETFs?

A spot ETF is a financial instrument that allows investors to gain exposure to the price movements of an underlying asset – in this case, cryptocurrencies such as Bitcoin (BTC -1.63%) and Ethereum (ETH -1.36%) — without directly owning the asset. These ETFs are traded on traditional stock exchanges, and their value is directly tied to the current (or spot) price of the cryptocurrency.

One of the main differences between owning a spot ETF and owning the actual cryptocurrency is the responsibility of custody. When you own cryptocurrency, you need to manage its storage and security, which involves using digital wallets and understanding private keys. With spot ETFs, the responsibility of custody falls on the fund manager, making it easier for investors to gain exposure to the asset without worrying about the complexities of secure storage.

In many ways, you can think of spot ETFs as gold ETFs. When people buy a gold ETF, they don’t actually receive gold coins or bars. Instead, they own shares that track the price movement of gold.

Another important distinction is trading hours. Cryptocurrencies can be traded 24/7, while spot ETFs are subject to the stock exchange’s trading hours. This means that you can only trade ETFs during market hours. These limited hours can lead to potentially missing out on significant price movements that occur outside of the market’s designated trading hours.

Options available today

Currently, the only options for investors looking for spot cryptocurrency ETFs are Bitcoin and Ethereum. These two cryptocurrencies stand out due to their significant value and established track records, positioning them as attractive options for integration into the stock market via ETFs. Bitcoin, often referred to as digital gold, was the first cryptocurrency (created in 2009) and the first to gain approval for a spot ETF. With nearly seven months of trading now under its belt, the approval of the 11th Spot Bitcoin ETFs was touted as one of the most successful ETF launches in history.

More recently, nine Ethereum spot ETFs have gained approval from the Securities and Exchange Commission (SEC) to begin trading on July 23. As the second most valuable cryptocurrency and the backbone of the decentralized finance (DeFi) economy, Ethereum was the next best candidate for a spot ETF launch.

While limited to two cryptocurrencies, as investors become more comfortable with digital currencies and ETFs continue to prove popular, we can expect to see more cryptocurrencies gaining ground as ETFs. The early stages of this expansion are already visible, with applications for Solana Spot ETFs starting to come in.

How to buy an ETF outright

Buying a spot ETF involves several steps and considerations, just like any other ETF investment. Here’s a detailed guide on how to do it:

Start by researching the available Bitcoin and Ethereum ETFs. Compare their fees, assets under management (AUM), and performance. ETFs with lower fees and higher AUM are generally more attractive, as they may offer better liquidity and lower costs.
To buy ETFs, you need a brokerage account. If you don’t already have one, choose a brokerage that offers a wide range of ETFs, low fees, and a user-friendly platform.
If you’re new to the brokerage, you’ll need to provide personal information and fund your account with money from your bank. Most brokerages offer multiple funding methods, including ACH transfers, wire transfers, and check deposits.
Once your account is funded, use your broker’s search function to find the Bitcoin or Ethereum ETF you’ve decided to invest in. ETFs are usually identified by their ticker symbols, so knowing them can make your search easier.
Decide how many shares of the ETF you want to buy. You can place a market order, which buys the ETF at the current market price, or a limit order, which sets a maximum price you are willing to pay. Review your order carefully before submitting it.
Once you’ve purchased the ETF, monitor its performance and keep an eye on any news or developments related to cryptocurrencies and the ETF itself. Regularly reviewing your investment ensures that it aligns with your financial goals and risk tolerance.

An evolving landscape

The introduction of Bitcoin and Ethereum spot ETFs marks a significant milestone in the evolution of cryptocurrency investing. These financial instruments offer a simpler and more accessible way to gain exposure to digital currencies without dealing with the complexities of cryptocurrency exchanges and direct ownership.

By following the steps to purchase these ETFs through a brokerage account, investors can seamlessly integrate digital currencies into their investment strategies. As the cryptocurrency market continues to mature, the availability and acceptance of spot ETFs is likely to expand, providing even more opportunities for investors to participate in this dynamic asset class.

RJ Fulton has positions in Bitcoin, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.

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Trump raises over $4 million in bitcoin and other cryptocurrencies

Published

6 months ago

28 July, 2024

CoinFlix Staff

Trump raises over $4 million in bitcoin and other cryptocurrencies

Republican presidential candidate and former President Donald J. Trump holds a campaign rally at Van Andel Arena in Grand Rapids, Michigan, on July 20, 2024.

Bill Pugliano | Getty Images News | Getty Images

NASHVILLE, Tenn. — Former President Donald Trump is heading to Tennessee this weekend to deliver a keynote speech at a major bitcoin conference. It looks like he’ll be in front of a supportive crowd.

Trump, the Republican presidential nominee, has raised more than $4 million from a mix of digital tokens, a campaign aide told CNBC. Contributors have donated bitcoin, etherRipple’s XRP token, the stablecoin pegged to the US dollar USDC and several memecoins, according to a Federal Election Commission filing.

The more than 1,000-page report shows totals for the joint fundraising committee “Trump 47” from April 1 to June 30. The committee raised more than $118 million during that period, with payments going to the Trump campaign, the Republican National Committee and other parties, according to the filing.

At least 19 donors have contributed more than $2.15 million in bitcoin to the committee, the lawsuit shows. The contributors hail from 12 states, including some battleground states. Their professions include homemaker, U.S. military officer, missionary, painter, pizza sales representative and State Department security technician.

Crypto billionaire twins Tyler and Cameron Winklevoss led the charge, each contributing 15.57 bitcoins, or just over $1 million at the time of the donation. Since their contributions surpassed the $844,600 limit, the lawsuit indicates that the money was partially refunded. Mike Belshe, CEO of digital asset security firm BitGo, contributed $50,000 worth of bitcoin.

Tyler Winklevoss, CEO and co-founder of Gemini Trust Co., left, and Cameron Winklevoss, chairman and co-founder of Gemini Trust Co., speak during the Bitcoin 2021 conference in Miami, Florida, U.S., on Friday, June 4, 2021.

Eva Marie Uzcategui | Bloomberg | Getty Images

In recent months, Trump has positioned himself as the pro-crypto candidate for president, a reversal from his previous stance during his time in the White House. Trump launched his latest collection of non-fungible tokens on the Solana blockchain in April and has since been making increasingly optimistic crypto commentary. Along the way, he has gained the support of several influential tech and crypto investors, including venture capitalists Marc Andreessen and Ben Horowitz.

Trump will be in Nashville on Saturday to deliver the keynote address at The Bitcoin Conference, which is being held at the Music City Center. He will also host a campaign fundraiser in the city on the same day, where tickets cost up to $844,600 per person.

Front-row tickets include a seat at a roundtable with Trump and cost the maximum donation amount allowed for individuals. the Trump Committee 47. The next tier includes a photo with the former president for $60,000 per person or $100,000 per couple, according to the invitation.

Brian Hughes, an adviser to the Trump campaign, said that of the more than $4 million in cryptocurrency raised, most of it came in bitcoin.

“Crypto innovators and others in the tech sector are under attack from Kamala Harris and the Democrats,” Hughes said, referring to the de facto Democratic nominee. “While the Biden-Harris Administration stifles innovation with more regulation and higher taxes, President Trump stands ready to encourage American leadership in this and other emerging technologies.”

Trump, the first major presidential candidate to accept donations in digital tokensYou can receive contributions in a variety of cryptocurrencies, including Dogecoin, Shiba Inu coin, XRP, USDC, and Ether.

Kraken founder and former CEO Jesse Powell has donated nearly $845,000 worth of ether. Stuart Alderotylegal director of Curlinggave $300,000 in XRP token. Alderoty recently attended a Trump fundraiser organized by venture capitalist David Sacks in San Francisco.

Former Messari CEO Ryan Selkis, who resigned last week from the company he co-founded after posting about “literal war” against Trump opponents, donated $50,000 in USDC.

So far, it appears that the Trump campaign is converting these contributions immediately to USDC and then liquidating the donations. In some cases, however, the campaign has chosen to keep the USDC.

Trump has personally promised to defend the rights of those who choose to self-custody their currencies, meaning they are not dependent on a centralized entity like Coinbase and instead use cryptocurrency wallets, which are sometimes beyond the reach of the IRS.

Trump also vowed at the Libertarian National Convention in Washington in May to keep Sen. Elizabeth Warren, D-Massachusetts, and “her henchmen” away from bitcoin holders. Warren is a vocal critic of cryptocurrencies.

Meanwhile, after a meeting at his Mar-a-Lago club in Florida with about a dozen bitcoin mining executives who pledged their support, Trump declared that all future bitcoins will be minted in the US if he returns to the White House.

Trump has named Ohio Senator J.D. Vance as his running mate, a move seen by many as a victory for the cryptocurrency sector. Vance has advocated for looser regulation of cryptocurrencies and revealed in 2022 that he personally holds bitcoin.

The Biden White House has stepped up regulation of cryptocurrencies, with the SEC stepping up its crackdown on the sector in recent years.