Earlier this week, Representative Brad Sherman claimed that TikTok’s Chinese owners planned to buy $300 million worth of Official Trump (TRUMP) memecoins. He said this move amounted to a hidden bribe for former President Donald Trump.
Sherman tied the claim to reports about a firm called GD Culture Group. The allegation spread quickly and fueled fresh debate about TikTok’s U S ties and the world of crypto politics.
TikTok’s Swift Rebuttal
The official TikTok Policy account jumped into the fray on Thursday. It stated that Sherman’s claim was false and irresponsible. The post noted that Sherman’s recent letter did not support his assertion.
TikTok emphasised that it has no plans to invest in any memecoins. The platform urged critics to check the facts before making public statements.
Executive Order Context
These events come just after President Trump granted TikTok a 90‑day extension to find a U S buyer. This marked the third delay in the ongoing review of national security concerns over ByteDance’s Chinese ownership.
The extension expires in mid-September of this year. Lawmakers on both sides of the aisle have pressed for a sale or ban to protect user data and limit foreign control.
GD Culture Group’s Role
Sherman based his claims partly on news about GD Culture Group. This Nasdaq‑listed company creates AI‑driven content for TikTok but has no formal links to ByteDance.
In May, GD Culture said it would invest $300 million into both TRUMP and Bitcoin. Critics point out that GD Culture’s announcement is not the same as a move by TikTok itself. The firm’s plans reflect its own business goals, not those of the social media platform.
Political Backlash
Online, many questioned Sherman’s credibility and accused him of pushing political narratives. Some users noted that creating a cryptocurrency always carries development and liquidity costs. They argued it is impossible to mint a memecoin for zero cost.
Others defended TikTok’s denial, calling Sherman’s claims untrustworthy. The debate highlights how quickly unverified reports can shape public opinion.
Trump’s Crypto Venture Scaled Back
In a related development, the Trump family has quietly cut its stake in its primary crypto venture, World Liberty Financial. Public filings show that DT Marks DEFI LLC, the parent company, reduced its ownership from 60% to around 40% in the past 11 days.
This move suggests a shift in the family’s approach to digital assets. It also raises questions about the long‑term plans for the World Liberty token.
Implications for Crypto and Politics
The uproar over the memecoin claim underscores how politics and cryptocurrency often collide. Memecoins thrive on hype and online trends.
When political figures become involved, the stakes rise further. Platforms like TikTok face pressure to clarify any ties to token projects. At the same time, lawmakers push for oversight to prevent foreign influence and unfair market moves.
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