David Sacks Defends Crypto Divestment Against Media’s ‘Dump’ Narrative

David Sacks, the Trump administration’s AI and Crypto Czar, has criticized the media for portraying the cryptocurrency market negatively. 

His remarks follow recent reports that referred to his sale of over $200 million in digital assets as a “dump.”

Crypto Divestment or Dump? David Sacks Responds to Media Reports

For context, David Sacks and his firm, Craft Ventures, liquidated their entire cryptocurrency portfolio just before President Trump took office. 

“Crucially, you have already taken significant steps to minimize potential conflicts of interest due to digital asset holdings divesting from hundreds of millions of dollars in digital assets or digital asset-related industry entities,” the White House memo read.

According to the memo, Sacks’ sold assets included Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). It also involved the sale of various crypto-related funds and stocks, such as the Bitwise 10 Crypto Index Fund, Coinbase (COIN), and Robinhood (HOOD).

Nonetheless, Sacks took to X (formerly Twitter) to address media reports that used the term “dump” to describe his sale.

“I did not ‘dump’ my cryptocurrency; I divested it,” David Sacks posted.

He argued that the characterization was not only inaccurate but also intentionally misleading. The crypto czar stressed that it was designed to damage the broader credibility of the cryptocurrency market. Additionally, he emphasized that government ethics rules mandated his actions to avoid any appearance of conflicts of interest.

The statement from Sacks resonated with several industry leaders. Changpeng Zhao (CZ), former CEO of Binance, voiced his support on X. 

“They sell clicks, not ethics,” CZ wrote.

David Nage, Portfolio Manager at Arca, also defended Sacks’ actions and criticized the media’s portrayal.

“The media’s “dump” spin shows crypto’s “don’t trust, verify” ethos clashing with legacy systems built on blind trust,” Nage replied.

Meanwhile, analyst Colin advocated for cutting off all government funding to media organizations. Furthermore, Bankless Co-owner David Hoffman claimed that media outlets often reflect the views and biases of society at large, especially regarding perceptions of cryptocurrency. 

He argued that most people are not involved in crypto. In fact, they may not want it to succeed because accepting its potential for wealth creation would force them to confront a sense of “cognitive dissonance” — the discomfort of holding conflicting beliefs, such as not being involved in crypto while seeing others benefit from it.

“Media is titling headlines to cater to this need,” he added.

Interestingly, this comes amid growing opposition to Trump’s establishment of a digital asset stockpile and strategic bitcoin reserve. In fact, a survey has revealed that a majority of voters share concerns about the US government’s involvement in crypto and blockchain development. Many believe the government should reduce its investment in these technologies.

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