Investors Have Acquired a Significant Stake In Trump That They Can’t Sell.

Many supposedly shrewd business men did not realize they were buying high.

It was a great time to buy in. All the operation needed was cash to realize the full growth potential it was capable of. Donald Trump entered 2024 with mounting legal fees which ate into more and more of his campaign’s balance sheets, but that was just a temporary externality. As the year crept on, it became clear that Trump was picking up speed. Many in the tech industry, especially venture capitalists, noticed this.

These are people used to taking big bets out on small chances. Whether it be a start-up company promising to be ‘the Uber of (thing that does not need to be more like Uber)’, or a new cryptocurrency that will apparently do something no cryptocurrency has done before, risk is part of the business. In earlier years, the need for lobbying was important, but ultimately much more niche. This meant that people like Sam Bankman-Fried could support Democrats publicly while channeling similar amounts of money to Republicans behind the scenes.

In relatively new industries like crypto or gig economy apps, political friction was negligible, and the most important work was simply pushing legislation as hard as possible wherever one was able. As the 2024 election began to loom, it became clear that this strategy would not work anymore. The three most recent tech crazes, crypto, Metaverse, and AI have all come in such rapid succession that it would be fair to say public perception has soured somewhat compared to the glory days of the early 2010s when smart devices and cloud computing captured the imaginations of the public.

Investors are now faced with the problem of PR that has reinforced skepticism from a growing number of both regular people and elected officials. Where before the enthusiasts were found in a decidedly liberal section of the population, the dynamic has flipped. This dynamic was best exemplified by Elon Musk’s recent ‘interview’ with former president Trump. Both Musk and Trump are kindred spirits. Both are showmen, both are billionaires, and both are not cut out for this race.