The “Defiant Ones” cryptocurrency platform announced by US presidential candidate Donald Trump may further lead to a number of challenges in the regulation of the cryptosphere, as well as volatility in the market. At the same time, it may push other countries, including Ukraine, to adopt additional laws regulating the cryptocurrency market. This opinion was expressed in an exclusive commentary UNN by Elena Sosiedka, co-founder of Ukraine's first fintech ecosystem Concord Fintech Solutions.
Unlike other platforms, Defiant Ones is closely linked to a political figure - Donald Trump. This gives the project not only economic but also political significance. The platform is promoted as a tool that defends freedom and independence from traditional financial and governmental structures, which is in line with Trump's rhetoric,
She noted that the platform is aimed at an audience that shares Trump's ideology, as well as those who are dissatisfied with the existing financial systems. Elena Neighbor does not rule out that the platform will be promoted by Trump as a means of fighting the financial and political elite, which may attract users interested in alternative forms of economy.
Defiant Ones will likely offer its own tokens, which may have features or benefits that would not be available on other platforms. Trump may also promote the use of certain cryptocurrencies that align with his political and economic views, which will differentiate the platform from neutral cryptocurrency services,
The expert suggests that Trump's crypto platform plans to offer a more decentralized approach to management and security. “Unlike centralized platforms such as Coinbase, Defiant Ones will aim to give users more control over their funds and data,” said Elena Neighbor.
According to a financial technology expert, since the new crypto platform will be closely tied to a political figure, it could face increased scrutiny from regulators, especially in the US. This could lead to unique regulatory and enforcement challenges.
Due to its strong political coloration, Defiant Ones may face higher volatility and unpredictability than traditional cryptocurrency exchanges. The close association with Trump could both attract attention from his supporters and increase pressure from governments and regulators, which could complicate the platform's operations,
Elena Neighbor noted that statements by politicians of such a level as Trump always have a significant impact on the markets. The cryptocurrency market is no exception. Therefore, Trump's announcement about the creation of a crypto platform can both strengthen confidence in cryptocurrencies and cause fears. Political rhetoric can influence investor behavior and change public perception of cryptocurrencies, which in turn affects market trends.
If the market perception is positive, this could lead to an increase in the prices of related assets as investors begin to expect a wider acceptance of cryptocurrency among a broader audience. However, it is worth bearing in mind that short-term fluctuations may also be caused by speculative sentiment, which could lead to increased volatility,
In the long term, she said, the platform's success could change the balance of power in the cryptocurrency market.
At the same time, according to Olena Sosiedka, the emergence of Trump's crypto platform may prompt other countries, including Ukraine, to adopt additional laws regulating the cryptocurrency market.
Ukraine, for example, passed the Law on Virtual Assets in 2021, which regulates the circulation of cryptocurrencies and defines their legal status. If Trump's platform becomes a significant player in the global market, it could accelerate the adoption of additional laws and regulation both in the US and in other countries seeking to adapt their legal frameworks to the new realities,
It is worth noting that the price of one of the most popular cryptocurrencies Bitcoin has already exceeded the mark of 63 thousand dollars per coin
Recall
UNN has started a series of publications in which it talks about digital currencies and their possibilities. Our first material was devoted to the technology underlying cryptocurrencies - blockchain: Crypto for Dummies. Part 1: what is blockchain and its “chips” that few people know about.
The second material is halving bitcoin: Crypto for Dummies. Part 2: what halving is, and why it is causing a stir in the cryptocurrency market.
Third material: “Crypto for Dummies”. Part 3: step-by-step instructions on how to buy crypto coin.
Fourth material: Crypto for Dummies. Part 4: What are coins and tokens and what are their differences.
Fifth material: “Crypto for Dummies”. Part 5. Cold and hot wallets.
Sixth material: “Crypto for Dummies. Part 6. Security when using cryptocurrency exchanges and exchangers.”