Trump's $TRUMP Token Stuns Crypto Industry, Raises Ethical Concerns

Crypto industry heavyweights were expecting the new republican US Administration to take the digital asset sector seriously. So, their outrage at Donald Trump and Melania's new memecoins was understandable.

The crypto industry’s bigwigs were expecting the new Republican US Administration to take the digital asset sector seriously.

So, their fury at Donald Trump and Melania’s new memecoins was palpable.

On Friday, the president introduced the “Trump” token, and Melania Trump began her “Melania” campaign on Sunday.

The value of the trump memecoin peaked at $15 billion and then dropped to below $8 billion briefly when Melania’s token grabbed some attention.

Controversy dogs the memecoin sector, which is home to dogecoin and other joke tokens with little intrinsic value and high volatility.

This plays into the narrative that the emerging industry is too risky and trivial for serious investors.

Memecoins are based on fleeting social media trends that arrive and depart just as quickly. Trump team says $Trump coin is a ‘meme, not security.’

Trump's $Trump coin had sparked a crypto frenzy ahead of his inauguration, but the project claims it's just a "meme."

Announced on Friday by the man himself, the memecoin is designed to celebrate “winning” the election. Bitcoin hit a new all-time high on Monday, hours before Trump's inauguration. But the rally was short-lived.

As Trump's speech ended without mention of crypto or a strategic bitcoin reserve, the PG token pulled back sharply to $100,500, a 6 percent intraday decline, and trades above $102,000 at present.

The broader market mirrored Bitcoin's volatility.

Tokens like $Trump and $Melania, which had been riding the wave of political fervor, nosedived by over 20 percent.

Some execs believe the memecoin volatility will hinder rather than help the industry's efforts to rehabilitate its reputation.

Trump's memecoin also sparked scrutiny of his financial dealings.

Government watchdogs wasted no time in describing Trump's memecoin as his latest unethical move and an attempt to cash in on his place on the world stage.

Other groups that voiced their concerns include the non-profit campaign Legal Center and the Washington-based Citizens for Responsible Ethics, which unsuccessfully sued Trump in his first term for violating constitutional prohibitions on foreign gifts and compensation.

According to Danielle Brian, who leads the nonpartisan government oversight project, memecoins are usually not connected to any real-world enterprise, making them risky for investors but highly rewarding for their creators.

“Any effort the Trump Organization was making to demonstrate they were concerned about potential conflicts, specifically where it comes to foreign governments — this seems to entirely undermine it,” said Brian.

(With inputs from the agencies)