Sacks Divests from Multicoin Amid Trump's Crypto Plan
Sacks Divests from Multicoin Amid Trump's Crypto Plan
David Sacks, the White House AI and Crypto Czar, announced the divestment of his holdings in Multicoin Capital, a venture capital firm known for its significant investment in Solana. This action follows increased scrutiny surrounding President Trump's proposal for a national cryptocurrency reserve.
Key Takeaways
- David Sacks divested from Multicoin Capital due to concerns surrounding President Trump's crypto stockpile plan.
- Sacks's previous Solana investment through Multicoin yielded an estimated $1 billion in returns.
President Trump's plan to include Bitcoin, Ether, Solana, XRP, and Cardano in a national crypto stockpile has drawn considerable attention and sparked significant price movements in these assets. Political commentator Krystal Ball voiced concerns on X about the plan's use of taxpayer funds and the potential for insider trading. In response to this criticism, Sacks publicly disclosed the sale of his BITW holdings and confirmed his divestment from Multicoin Capital.
Sacks's initial investment in Multicoin Capital was made in 2018 through his firm, Craft Ventures. While Craft Ventures continues to invest in crypto startups, both Sacks and the firm have divested from their direct cryptocurrency holdings since President Trump's inauguration. Sacks previously stated that he liquidated his entire personal crypto portfolio, including Bitcoin, Ether, and Solana, before assuming his White House role.
The upcoming first White House Crypto Summit, chaired by Sacks, is scheduled for Friday. This summit aims to bring together industry leaders and the President's Working Group on Digital Assets to strengthen the US position in the global cryptocurrency market and formulate clearer regulatory frameworks. Codeum, a blockchain security and development platform, offers services including smart contract audits, KYC verification, custom smart contract and DApp development, tokenomics and security consultation, and partnerships with launchpads and crypto agencies – all crucial elements in navigating the complexities of the evolving crypto landscape.