Trump’s Meme-Coin Sparks Anger in Crypto World
US President Donald Trump has sparked controversy by launching a meme-coin called TRUMP just days before his inauguration. Despite its initial surge to $75 per coin, the value has since dropped to $39, prompting criticism from crypto experts and industry insiders.
Criticism of TRUMP Meme-Coin
Many see the launch as a publicity stunt, with Danny Scott, CEO of CoinCorner, stating:
“Trump’s comments about not knowing much about the coin back up my opinion that he is making a mockery of the industry.”
Meme-coins—cryptocurrencies created for fun or speculation—often lack intrinsic value or practical utility. While the TRUMP coin raised billions, Trump’s downplaying of its success has added fuel to the fire.
Mixed Reactions from the Crypto Industry
While some analysts, such as Jeff Dorman from Arca, view the launch as a sign that brands and organizations might embrace crypto, others remain skeptical.
Dan Hughes from Radix criticized the move, saying:
“Celebrity-driven token launches degrade the industry’s credibility and shift focus from meaningful innovation.”
Meanwhile, David Zimmerman of K33 Research criticized the tokenomics of TRUMP coin, stating that its structure favors the creators, who own 80% of the tokens, over investors.
Trump’s Crypto Promises Remain Unfulfilled
During his campaign, Trump vowed to make the US the “crypto capital of the planet,” appealing to Bitcoin supporters. However, just days into his term, there have been no significant executive orders or policy changes to support cryptocurrency development.
On Thursday, Trump signed an Executive Order to establish a working group exploring crypto regulations and a national crypto stockpile.
The Rise of Meme-Coins: A Concerning Trend?
Trump isn’t the only one entering the meme-coin space. First Lady Melania Trump launched her own coin, which has dropped in value significantly since its launch, now sitting at $2.70 per coin with a total market value of $700m.
Critics argue that these celebrity-driven launches undermine the industry’s integrity. Grzegorz Drozdz from Conotoxia highlighted concerns:
“These launches raise ethical questions and risk tarnishing the presidency with conflicts of interest.”
The Current State of TRUMP Coin
Despite the backlash, TRUMP coin remains the 25th most valuable cryptocurrency, with a market valuation of approximately $8 billion, according to CoinMarketCap.
However, its long-term viability is uncertain as the crypto world continues to question its purpose beyond speculation.
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For more on the cryptocurrency debate, visit BBC News.
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