Trump-branded meme coins become a profitable new business for President Donald Trump's family company

Meme coins have become a profitable new business for President Donald Trump's family company. The Trump-branded digital tokens are part of a broader push by the Trump Organization – which is managed by Mr. Trump's sons, and in which the president holds a majority ownership stake – into cryptocurrency, a form of digital money that Mr. Trump once derided but now embraces.

A new family business venture has seen President Donald Trump’s family company become a top investor in a meme coin that is offering a May 22 dinner with the president to the top 220 token holders.

The Trump-branded digital tokens are part of a broader push by the Trump Organization – which is managed by Mr. Trump’s sons, and in which the president holds a majority ownership stake – into cryptocurrency, a form of digital money that Mr. Trump once derided but now embraces.

Ahead of his Jan. 20 inauguration, Mr. Trump began promoting two meme coins, $TRUMP and $MELANIA, to his supporters. $TRUMP’s market value spiked after its launch to $14 billion. It is now valued around $2 billion.

The token got a boost late last month when it was announced that the top 220 holders of the coin, in value, would be invited to a May 22 dinner at Trump National Golf Club in Virginia, with the top 25 also invited to a “Private VIP Reception” with Mr. Trump.

The move has sparked ethical concerns, with the president’s critics saying he is profiting from his presidency, while defenders say he is breaking no law and that the event is being organized by a Trump-affiliated entity, not the White House.

Democrats have slammed the Trump family’s various crypto ventures as selling access to and profiting from the presidency. Sens. Jeff Merkley and Chuck Schumer proposed legislation on May 6 to bar the president, vice president, administration officials, members of Congress, and their families from issuing or sponsoring crypto coins and currencies.

“Currently, people who wish to cultivate influence with the president can enrich him personally by buying cryptocurrency he owns or controls,” said Sen. Merkley. “This is a profoundly corrupt scheme. It endangers our national security and erodes public trust in government. Let’s end this corruption immediately.”

Non-American holders of $TRUMP appear to be among those in the running to win dinner with the president, according to an analysis by Bloomberg, raising concerns about foreign influence – as well as how invitees will be vetted. The organizers, a Trump-affiliated entity called Fight Fight Fight LLC, said that a background check would be mandatory. Foreigners are legally barred from donating to U.S. election campaigns and candidates.

In a recent interview with NBC News’ “Meet The Press,” Mr. Trump claimed he wasn’t profiting from his family’s crypto businesses. Asked if he had made money from his meme coin, he said “I haven’t even looked.” Last Sunday, asked about Democratic lawmakers’ accusations, he said that the U.S. needs to “dominate” crypto so that China doesn't, but didn't speak to his family's involvement.

What is a meme coin?

Meme coins are digital tokens that are closely linked to a particular online meme, community, or group. Unlike cryptocurrencies such as Bitcoin, meme coins aren’t forms of money and are marketed as collectibles, similar to baseball cards, that are traded within a dedicated community. But they also double as speculative investments. Their value is highly volatile, even compared to Bitcoin.

Dogecoin began as a meme coin that Elon Musk referenced with the creation of the Department of Government Efficiency, or DOGE. Other coins feature cartoon characters or AI-generated images. Millions of meme coins are created and traded every year.

How do meme coins generate profits?

Coin issuers earn money on sales and from trading fees. Since they cost virtually nothing to issue, the upside can be substantial, though most meme coins are thinly traded or not at all.

More controversially, speculators who get early access to meme coins that soar in value can sell at higher prices, typically before coins plunge in value. Unlike stocks or other securities, meme coins aren’t regulated and issuers don't have to provide disclosures to buyers. Critics say this allows for market manipulation by insiders who can time their buying and selling.

Traders who bought $MELANIA in the minutes before it was first promoted on social media earned nearly $100 million in profits, according to an analysis by the Financial Times. In the minutes before Melania Trump formally announced the token’s launch on Truth Social on Jan. 19, a small group of traders bought $2.6 million worth of coins. Most were then sold within 12 hours.

The creators of $TRUMP include the Trump Organization and a Wyoming-based group called Celebration Cards LLC, whose ownership is opaque. The Trump-related entities are estimated to have already earned hundreds of millions of dollars from the sale and trading of the token. The entities also hold 80% of the 1 billion tokens that are being created, a holding potentially worth billions of dollars. These tokens are subject to