The price of Bitcoin and other digital assets has risen since Trump won the US election. The lavish “Crypto Ball” before Trump’s inauguration sold thousands of dollars in tickets. Now, the mood is sour.
President Donald Trump’s goodwill in the cryptocurrency industry took a hit after he and his wife launched meme coins — a move critics say looks like an inappropriate cash grab that undermines efforts to legitimize digital assets.
The industry, which felt unfairly targeted by the Biden administration and spent heavily to help Trump win, is eager to help the new president make cryptocurrencies a bigger part of mainstream financial systems. Trump has promised a lighter regulatory touch and selected pro-crypto officials to fill key government positions.
The price of Bitcoin and other digital assets has risen since Trump’s victory. The lavish “Crypto Ball” concert, which included a performance by rapper Snoop Dogg, which was held on the Friday before Trump’s inauguration, sold tickets for thousands of dollars.
But while the party was going on, Trump announced on social media that he was offering his own cryptocurrency in the form of a meme coin. The move dampened the mood of many in the cryptocurrency community.
“I was really upset when I saw that,” said Tom Schmidt, a partner at crypto venture capital firm Dragonfly. “It felt very brave and cheap.”
Some crypto fans even joked on social media that they miss Gary Gensler, the recently departed SEC Chairman who was seen as the Biden administration’s main crypto opponent thanks to the SEC’s tough enforcement actions against cryptocurrency companies. encrypted.
Memes are among the wildest and unregulated corners of the cryptocurrency world. These products often start out as a joke with no real value, but their prices can rise if enough people are willing to buy them. Popular meme coins include Dogecoin, which represents a dog, and Fartcoin. Scammers have tried to raise the prices of some cryptocurrencies before offering them to unsavvy investors.
Some cryptocurrency enthusiasts applauded the release of the Trump meme coin, and enthusiastic buyers drove the price of the coin to more than $70 (€68) each. The price dropped significantly on Sunday after First Lady Melania Trump announced the launch of her own digital currency, which also saw an initial spike in price followed by a significant decline. As of Tuesday afternoon, the Trump meme was trading at around $45 (€44) while the Melania meme was trading at around $4.
Trump named SEC Commissioner Mark Ueda as acting head of the agency on Tuesday and Ueda quickly announced that he would launch a new cryptocurrency task force to put the SEC on a “reasonable regulatory path.” Trump has promised to create a US stock of bitcoin and enact industry-friendly rules that make it easier for cryptocurrency companies to access the broader financial market.
But by associating himself so closely with memes, some crypto fans worry that Trump will hurt his ability to enact reforms.
“Right now, on the cusp of liberalizing some cryptocurrency regulations in this country, the main thing people are thinking about crypto is: ‘Oh, it’s just a casino for these meme coins,’” said Nick Carter, a Trump supporter and associate. Cryptocurrencies Castle Island Ventures “It does the opposite of what we’re told is true, it makes it seem not serious at all.”
The sale of Trump memes was organized by CIC Digital, an affiliate of the Trump Organization. In promoting the meme, Trump told his supporters: “Enjoy!” The website selling the tokens says they are intended as an expression of support and not an investment opportunity. The coin’s website said 200 million Trump coins are currently available, with plans to issue 1 billion over the next three years.
The Trump family company recently issued an ethics agreement prohibiting Trump from making “day-to-day” decisions at the Trump Organization during his presidency and limiting financial information about the company that is shared with him.
The president and first lady weren’t the only ones promoting new cryptocurrencies around the inauguration. Lorenzo Sewell, the Michigan pastor who delivered a spirited inauguration prayer Monday, announced the release of a new coin bearing his name, which he said will be used to benefit his church.
“I want you to do me a favor now, I want you to go buy an official Lorenzo Sewell coin,” Sewell said in a video post on social media.
