Trump's New TRUMP Meme Coin Promises Big Returns, But Raises Ethical Concerns

An extravagant dinner arranged by President Donald Trump for leading investors in his TRUMP meme coin has stirred controversy

An extravagant dinner arranged by former President Donald Trump for leading investors in his namesake meme coin has sparked controversy after guests collectively spent $148 million to attend the event, while the token's value continues to decline.

The gala, held on May 24th at the Mar-a-Lago resort in Florida, was part of an initiative by Trump to launch his own stablecoin, which he unveiled earlier this year in partnership with the Trump Organization and the FTX-backed DeFi platform, Unstoppable Domains.

The event, which was attended by crypto executives such as Unstoppable Domains' Sandy Carter, influencers, and former NBA star Lamar Odom, who used the platform to endorse Trump as "the greatest president" while promoting his own token, $ODOM, began with a lavish cocktail hour.

Guests were then treated to a lavish meal, though investor Nicholas Pinto, 25, was less than impressed with the culinary offerings.

"The food sucked. We were only offered water or Trump's wine, and my glass was filled just once," he said.

During his 23-minute appearance, Trump, who is running for president again in 2024, touched upon familiar themes, such as the "deep state" and the "fake news media." He also spoke about his vision for a new financial system powered by blockchain technology.

"We're going to have the greatest economic system that's ever been known, and it's going to be a system where people can participate fully and fairly," Trump said.

He then departed via helicopter without greeting guests or posing for photos with contest winners, as promised by event organizers.

Security measures also drew criticism, with Pinto noting that phones were largely unrestricted throughout the evening and supervision dissolved quickly after Trump's exit.

"It was like a mob boss's party in the best way possible," he said.

The event's opulence—Pinto observed at least 16 guests wearing Richard Mille watches—contrasted with a subdued mood as attendees monitored the token's falling value on their devices.

"Everyone was in a bad mood after the token started tanking," he added.

The gala's fallout extended to Capitol Hill, where Senate Democrats proposed legislation to ban presidents and other senior officials from profiting from crypto ventures while in office.

This proposal, which was co-led by Senate Banking Chairman, Democrat Tim Kaine, and Senator Jeff Merkley (D-Ore.), is a direct challenge to Trump's USD1 stablecoin project.

"This administration-by-an-oligarch model is dangerous for our democracy and divides our nation," Merkley stated during a press conference.

"We need to create a system where presidents are serving the people, not their own personal financial interests or the interests of campaign donors."

Bipartisan efforts to pass the GENIUS Act, a stablecoin regulation bill, also faced disruption after Senator Josh Hawley (R-Mo.) added a contentious amendment capping credit card late fees, potentially affecting banking sector support for the legislation.

Major U.S. banks, including JPMorgan and Bank of America, are reportedly exploring the creation of a unified digital dollar, but progress depends on regulatory clarity, which is now jeopardised by political wrangling.

Trump's use of the presidential seal during his speech, which is prohibited under federal law as it implies government endorsement of the token, has also brought legal scrutiny.

The White House distanced itself from the event, with press secretary Karoline Leavitt stating that Trump attended "in his personal capacity." However, critics argue that the line between his political and commercial interests remains blurred.

"He's holding forth in the MAGA hat and with the presidential seal on his podium, and yet he's talking about his new private token and touting his family's new DeFi project," said one critic.

"It's a blatant violation of federal law and campaign finance rules."

A blockchain analysis revealed that the majority of the top TRUMP token holders utilised foreign exchanges, such as Bittrex Global and Coinswiss, which are typically inaccessible to U.S. users.

Among the attendees was Chinese crypto mogul Justin Sun, who is currently facing paused SEC fraud charges. Sun, who holds $22 million in TRUMP tokens, was the third-largest holder of the token as of May 24th.

Outside the venue, demonstrators, including Senator Merkley, gathered to protest against "crypto corruption" and urge lawmakers to pass legislation limiting politicians' ability to exploit cryptocurrency for personal gain.

The protesters, who were organized by the anti-corruption group CREW, also distributed fliers warning guests about the potential for a pyramid scheme and highlighting the involvement of Trump's family members in the token project.

Despite boasting an impressive start with over $324 million in trading fees collected since its debut in January, the TRUMP token has encountered difficulties in recent months, with its price plummeting rapidly