Donald Trump has returned to the White House under a cloud of controversy after launching a multi-billion dollar cryptocurrency project that includes personal currencies, such as TRUMP and $MELANIA.
Speaking to reporters on Tuesday, President Donald Trump spoke briefly about the Trump meme coin, which debuted on January 17, just days before his inauguration.
“I don’t know much about it except that I shot it,” Trump said. “I heard it was very successful. I didn’t check.”
The move has sparked some cryptocurrency supporters who see the development as a game-changer for the industry.
“The fact that the president is doing this lends a kind of legitimacy to this space, and I think it just means that the industry is moving forward in a way that it hasn’t in the last 10 years,” said Paul Howard, a senior director at Standard & Poor’s. Cryptocurrency market maker Wincent
However, ethics officials and presidential experts largely condemned the move, citing a conflict of interest that could damage public confidence in the presidency.
“There is a huge and shameful conflict of interest regarding his family company profiting from his cryptocurrency policies,” said James Thurber, founder and former director of the Center for Congressional and Presidential Studies.
Thurber added that Trump “does not appear to be concerned about the public interest regarding cryptocurrency.”
“He appears to be profit-driven and wants to be a major part of the billionaire class in the United States.”
The coins debuted just days before Trump’s inauguration, with $TRUMP launching on Friday and $MELANIA following on Sunday.
$TRUMP Prepared to Help Prez Profit from Cryptocurrencies: Ethics Experts
Walter Shaub, former director of the US Office of Government Ethics, criticized Trump’s actions as a fundamental threat to ethical governance.
“America voted for corruption, and Trump is wasting no time making that happen,” said Walter Shaub, former director of the US Office of Government Ethics, who served under former Presidents Barack Obama and Trump.
“What was once a government ethics programme, shaped partly by laws and partly by norms, has become a burning hole,” he added.
Much of the concern stems from the intertwined interests of the Trump administration and his business ventures.
CIC Digital LLC, an affiliate of the Trump Organization, and Fight Fight Fight LLC, owned by CIC Digital, collectively own 80% of the tokens, meaning Trump-linked companies could have earned $8 billion worth of cryptocurrencies during Weekend. .
Likewise, $MELANIA is offered by MKT World LLC, a company Melania Trump founded in 2021.
Critics argue that this setup allows the Trump family to simultaneously profit from industries they regulate, with potential national security implications.
The Securities and Exchange Commission (SEC) on Tuesday took its first step toward reducing regulatory barriers for the cryptocurrency industry by launching a “Cryptocurrency Task Force” to create a clear and comprehensive regulatory framework for cryptocurrency assets.
Legal repercussions looming for the TRUMP meme coin?
Legal experts expect lawsuits on the horizon.
Preston Byrne, a lawyer who focuses on cryptocurrencies, predicted a 90% chance of legal action within two weeks, citing the potential for financial losses and regulatory scrutiny.
Despite the initial market boom, with the TRUMP memecoin reaching a market cap of $13 billion during its peak over the weekend, both tokens have been extremely volatile since then.
Trump’s market capitalization has fallen to approximately $8 billion, with the token currently trading at around $42.
Additionally, watchdog groups like the Project on Government Oversight have raised alarms about the lack of oversight in Trump’s cryptocurrency projects.
“Beyond being a blatant financial conflict of interest, this deepens Trump’s involvement in a sector that carries significant national security risks,” said Danielle Bryan, the group’s executive director.
Nick Carter, a prominent cryptocurrency investor, highlighted another risk: foreign influence. “Personalized meme currencies open the door for foreign actors, including sanctioned individuals, to gain influence over American leaders,” he said.
Democratic lawmakers, including Rep. Maxine Waters, called for more transparency and accountability.
“Anyone globally, even individuals sanctioned by the United States, can now trade and profit from Trump dollars through unregulated platforms,” Waters warned.
Mimecoins: fad or financial risk?
While cryptocurrencies like TRUMP and $MELANIA are marketed as fun, non-investment-grade assets, their high volatility and speculative nature have critics concerned.
Carol Alexander, a professor of finance at the University of Sussex, likened coins to tokens that rise and fall with public sentiment.
However, even fans acknowledge the risks.
Both tokens lost value during Trump’s inauguration events, although their combined value remained above $9 billion.
Such dramatic fluctuations underscore the risky nature of cryptocurrencies as financial assets.
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