Chinese social media platform TikTok denied allegations that it has made purchases of US President Donald Trump’s official memecoin.
The official TikTok Policy account took to X on Thursday to deny claims that its owners are buying the Official Trump (TRUMP) memecoin, responding to accusations by California Democratic Party Representative Brad Sherman.
Sherman had claimed that the “Chinese owners of TikTok have announced they are buying ‘Trump Coins’ for $300 million.”
“Congressman, claiming that the owners of TikTok are buying ‘Trump Coins’ is patently false and irresponsible and doesn’t even accurately reflect a letter you signed last month,” TikTok Policy said in response to the claims.
Link to TikTok-connected firm sparks confusion
Sherman’s remarks came amid the news that Trump had signed another executive order to delay the ban or sale of TikTok.
The latest delay marked the third postponement, giving TikTok another 90 days to find a buyer or be banned in the US, according to online reports.
Sherman emphasized that US laws allow only one extension, arguing that Trump’s failure to enforce the ban against TikTok is illegal.
Sherman’s allegations apparently referred to reports about TikTok-connected GD Culture Group announcing plans to buy $300 million of Trump memecoin and Bitcoin (BTC) in May.
While having no known formal ties to TikTok or its parent firm, ByteDance, Nasdaq-listed GD Culture produces artificial intelligence-enhanced content on TikTok as one of its main operations.
Related: Trump discloses $57M crypto windfall from World Liberty Financial
“Trump creates ‘Trump Coins’ at no cost, meaning this is just a $300 million bribe that goes right into his pocket,” Sherman alleged.
Community stands up against Sherman
Some online commentators were skeptical of TikTok’s denial, but many refuted Sherman’s allegations, labeling them as untrustworthy.
Others also expressed doubts about being able to create a cryptocurrency at no cost.
“No one wants TikTok banned, except the Israeli lobby, aka your puppet masters. Why don’t you put up a poll asking your constituents if they want TikTok banned,” another commentator stated.
Aside from criticizing Trump over his TikTok policy, Sherman has long been known for his anti-crypto positions, calling for a blanket ban on crypto in 2019.
Sherman’s hostile stance on crypto is primarily centered around cryptocurrencies’ potential to displace the US dollar.
The Trump administration has taken an opposite approach on crypto, pledging to promote US dollar-pegged stablecoins as part of the US strategy to strengthen the US dollar’s sovereignty.
Magazine: China threatened by US stablecoins, G7 urged to tackle Lazarus Group: Asia Express
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