Emily Walker
The emergence of Trump-themed meme coins has sparked some excitement among investors, yet many leaders in the cryptocurrency field express concern. They believe these tokens may bring more problems than benefits, potentially harming the entire industry.
Executives worry that tokens like $TRUMP and $MELANIA could provoke a negative response among traders and adversely impact the reputation of cryptocurrencies as a whole.
Concerns About Coin Launches
The launch of these meme coins has raised eyebrows among some in the crypto sector, with critics suggesting it could represent a conflict of interests for Donald Trump, especially following his inauguration on January 20.
Nic Carter, a founding partner at Castle Island Ventures, expressed his disapproval stating that it is inappropriate for a president to engage in the cryptocurrency market while governing the nation.
“Call me old-fashioned but I think presidents should focus on running the country and not launching scam tokens,” Carter remarked.
Call me old fashioned but I think presidents should focus on running the country and not launching scam tokens
— nic golden age carter (@nic__carter) January 20, 2025
Gabor Gurbacs, the founder of PointsVille and a former head of digital asset strategy at VanEck, stated these meme coins “cost the US, the presidency and his family a lot of credibility.”
Trump needs to fire his crypto advisors, from top to bottom and replace with people who know what they are doing. The memecoins cost the US, the presidency and his family a lot of credibility and the consequences haven’t even started.
— Gabor Gurbacs (@gaborgurbacs) January 20, 2025
Introduction of Trump and Melania Tokens
In a surprising move just days before the inauguration of the 47th US President, Trump launched meme coins $TRUMP and $MELANIA, which became popular among crypto enthusiasts almost instantly.
These meme coins reportedly achieved a remarkable market cap of $14.5 billion within one weekend, while the Melania-themed coin alone garnered around $3 billion.
The tokens are described on their website as expressions of support for the ideals symbolized by ‘$TRUMP’.
Nevertheless, many crypto stakeholders are concerned that these Trump-related tokens could harm the reputation of the meme coin market, which has been striving to regain trust after previous instances of fraud and failure.
Concerns Regarding Meme Coins
An article from CNN highlights how the decentralized nature of blockchain facilitates the creation of new tokens, allowing developers to inflate prices and exit without repercussions.
Each day, between 40,000 to 50,000 new memecoins are created, amassing a collective market value of around $100 billion.
People tend to buy meme coins out of novelty, with risks comparable to gambling in casinos.
Matthew Homer, a general partner at crypto firm Department of XYZ, attributed the fraudulent risks in the crypto realm to the unclear regulations regarding digital assets—a situation that Trump promised to rectify during his presidency.
Featured image from WIRED, chart from TradingView