TikTok Denies $300 Million Trump Coin Purchase Allegations

TikTok, the popular social media platform, has vehemently denied allegations that it has made purchases of the official memecoin of former US President Donald Trump. The denial came in response to accusations made by California Democratic Party Representative Brad Sherman, who claimed that the Chinese owners of TikTok had announced plans to buy 'Trump Coins' worth $300 million.

In a statement posted on X, the official TikTok Policy account refuted Sherman's claims, stating that the allegations were "patently false and irresponsible" and did not accurately reflect a letter signed by Sherman last month. The statement also emphasized that the owners of TikTok have never made any purchases of the TRUMP memecoin.

Sherman's remarks came amidst news that Trump had signed another executive order to delay the ban or sale of TikTok. This latest delay marked the third postponement, giving TikTok another 90 days to find a buyer or face a ban in the US. Sherman argued that US laws allow only one single extension, suggesting that Trump's failure to enforce the ban against TikTok is illegal.

Sherman's allegations were apparently based on reports about GD Culture Group, a TikTok-connected firm, announcing plans to buy $300 million of Trump memecoin and Bitcoin in May. However, GD Culture Group has no known formal ties to TikTok or its parent firm, ByteDance. The company produces artificial intelligence-enhanced content on TikTok as one of its main operations.

Sherman's allegations have sparked a mix of reactions from the online community. While some commentators were skeptical of TikTok's denial, many refuted Sherman's claims, labeling them as untrustworthy. Others also expressed doubts about the feasibility of creating a cryptocurrency at no cost, as Sherman had alleged.

Sherman has long been known for his anti-crypto positions, calling for a blanket ban on crypto in 2019. His hostile stance on crypto is primarily centered around cryptocurrencies' potential to displace the US dollar. In contrast, the Trump administration has taken a completely opposite approach on crypto, pledging to promote US dollar-pegged stablecoins as part of the US strategy to strengthen the US dollar’s sovereignty.

The controversy surrounding Trump and TikTok highlights the complex interplay between politics and cryptocurrencies. As more political figures and public officials enter the cryptocurrency space, debates and controversies about the role of digital currencies in society are likely to increase. TikTok's denial of the allegations is a clear attempt to distance itself from the controversy and to protect its reputation, especially as it continues to expand its user base and explore new business opportunities.