When Donald Trump claimed the presidency in November, numerous crypto enthusiasts rejoiced, encouraged by his pledges to favor deregulation and recognize crypto entrepreneurs. Just days before his inauguration, prominent figures in the cryptocurrency industry convened in Washington for the Crypto Ball, reveling in their newfound status as insiders in the capital.
However, during the festivities, Trump surprised nearly everyone by announcing the launch of a new cryptocurrency named TRUMP. This digital asset, categorized as a meme coin, lacks intrinsic value and instead sees its price fluctuate based on market activity. Trump’s supporters and opportunistic day traders have generated billions in trading volume, fueled by loyalty, excitement, and the allure of quick profits. The coin’s creators—affiliated companies of the Trump organization—have reportedly seen billions in hypothetical earnings. The day after its debut, Melania Trump introduced her own meme coin, which also experienced wild price swings. As of Wednesday, TRUMP ranked as the 25th most valuable cryptocurrency globally, according to CoinMarketCap, with a price hovering around $43, which was a significant drop from its peak of $75.
Read More: What Trump’s Win Means for Crypto.
The emergence of Trump’s meme coins has drawn considerable attention to the crypto space, inviting many newcomers. For some, these coins signify Trump’s dedication to the cryptocurrency realm and its expansion. Yet, many in the crypto community reacted with disdain, viewing it as a blatant cash grab and a means for Trump to profit from his supporters. With Trump’s team controlling at least 80% of the token’s supply, they possess significant authority over its market value. Although they cannot liquidate their holdings for several months, such actions could potentially decimate the market, causing losses for everyday investors.
Crypto veterans express concern that these tokens might increase public skepticism toward an industry already rife with scams and dishonest participants. “The crypto sector has empowered someone whose initial action is to exploit the potential for corruption within crypto,” states Angela Walch, a researcher and writer focused on cryptocurrency. “That’s just embarrassing.”
Trump has minimized his involvement in the coin’s creation, stating at a press conference on January 21: “I don’t know much about it aside from the fact that I launched it.” The Trump Organization did not respond promptly to requests for comment, and a White House press representative declined to comment.
However, lawmakers and legal experts are voicing ethical and geopolitical worries regarding these tokens, asserting that they could serve as conduits for bribery and conflicts of interest. “These coins provide a means for him to gain financial advantages from foreign adversaries, prioritizing his personal interests to the detriment of Americans,” remarks Puja Ohlhaver, a lawyer connected with Harvard’s Allen Lab for Democracy Renovation.
What are meme coins?
TRUMP and MELANIA are examples of meme coins: cryptocurrencies created by entrepreneurs through coding deployed on a blockchain. Their value primarily derives from public belief and market demand. To generate buzz, the teams behind these coins frequently leverage popular memes that can easily spread across social media. The idea is that if memes can drive culture, creativity, and even ideologies, they should hold financial value as well.
Dogecoin and Shiba Inu are notable examples, with Dogecoin particularly influenced by Elon Musk’s tweets, which have caused significant price surges. The absence of intrinsic value renders meme coins particularly volatile and speculative, appealing to some investors who hope to capitalize on timing. Conversely, purchasing at market peaks can lead to rapid losses. Additionally, meme coins have been linked to alleged scams, resulting in significant investor losses.
Trump supporters have historically utilized memes as marketing tools. During his presidential campaign, a group of content creators inundated social media with pro-Trump meme material. Last summer, unofficial Trump-themed meme coins such as Pepe (TRUMP) and Maga People Token (PEOPLE) fluctuated in value, with some bettors viewing them as indicators of his electoral chances.
Trump also has a track record of leveraging crypto for profit. He began selling NFT trading cards in 2022, reportedly earning millions from them, as indicated by financial disclosure records. In September, he introduced World Liberty Financial, a cryptocurrency platform that has yet to launch. As of 2025, meme coins remain a quick way for aspiring crypto entrepreneurs to generate income.
TRUMP begins trading
On January 18, just two days before his inauguration, Trump unveiled his token through CIC Digital LLC, a Trump Organization affiliate, amidst the ongoing Crypto Ball. This unexpected move took the industry by surprise. Nick O’Neill, a crypto entrepreneur attending the event featuring Snoop Dogg and Speaker Mike Johnson, shared a video on X noting that very few attendees were aware of the token’s launch.
The following day, there was a frenzy of buying and selling, leading to numerous consequences. The Solana blockchain supporting the token and Coinbase, the exchange for trading the coin, encountered significant transaction delays. “We did not anticipate this level of demand,” tweeted Coinbase CEO Brian Armstrong.
Within a day, the team overseeing the token, led by CIC Digital, reported holdings worth approximately $51 billion on paper. (This figure is somewhat illusory, as attempting to cash out would cause the price to decline.) On the same day, Melania Trump launched her meme coin, MELANIA, which subsequently caused TRUMP’s market cap to drop by billions as traders shifted their investments. Following MELANIA’s release, TRUMP plummeted from over $70 to around $45 in just an hour. A counterfeit BARRON memecoin, unrelated to Trump’s youngest son, also briefly reached a $460 million market cap before crashing by 95%.
Some of Trump’s most ardent crypto supporters accused him of exploitative behavior regarding the coin’s launch. The essence of crypto lies in decentralization; however, Trump’s team wields control over at least 80% of the TRUMP token’s supply. Another blockchain analytics firm, Bubblemaps, discovered that 89% of MELANIA’s tokens were concentrated in a single wallet. Conor Gregor, a Coinbase executive, reported that Trump’s team accumulated $58 million solely from trading fees.
“Trump’s credibility has been utterly compromised,” remarked investment manager Michael A. Gayed. Anthony Scaramucci, Trump’s former communications director and a crypto advocate, stated: “No one can genuinely believe this is beneficial for our society.”
“There’s considerable introspection occurring in the industry currently,” observes Walch. “Sure, we gained power, but did it serve any of the original purposes we aimed to fulfill?”
Ethical and national security concerns
Critics beyond the crypto sphere have raised ethical issues. Trump is now directly involved in an industry he is tasked with regulating. (The affiliated companies claim that Trump tokens “are not investments or securities but rather an ‘expression of support.’”) Detractors argue that Trump’s financial gains from crypto might deter him from enforcing regulations that could significantly impact the value of his tokens. Representative Ro Khanna, a California Democrat and a notable crypto advocate, suggested on X that “Elected officials must be legally prohibited from holding meme coins.”
Some observers express concern that these tokens could pose a national security risk, as they allow foreign actors to acquire substantial amounts of the token, potentially influencing Trump’s decisions. These agents might purchase tokens to gain favor or threaten to sell them, which could lead to a plummet in the token’s price. Using cryptographic methods, they might even hide their identities from everyone except Trump, asserts Ohlhaver from the Allen Lab.
The Emoluments Clauses of the Constitution were designed to prevent such conflicts of interest, prohibiting a President from using their office to enrich themselves. Historically, gift-giving was a common corrupt practice among European leaders and diplomats. Some argue that since Trump’s token launch occurred before his inauguration, he was acting as a private individual. “It’s simpler for them to launch these BEFORE he officially becomes President,” commented crypto journalist Zack Guzmán on X. “Claiming Trump is profiting from the presidency and violating the Emoluments Clause would have been much easier if it hadn’t been.”
Nonetheless, Ohlhaver contends that as long as Trump retains ownership of the tokens, a significant conflict of interest exists. “He still possesses tokens that would increase in value if a foreign adversary artificially inflates them,” she states. Ohlhaver also believes that Trump’s meme coin undermines public comprehension of money itself. “In an age of social media and global networks, it’s alarmingly easy to exploit your influence to create a new form of currency and give it legitimacy,” she explains. “It’s crucial to safeguard our national public goods and ensure they serve our collective interests, rather than the narrow interests of a privileged few benefiting at the expense of the broader population.”
Andrew R. Chow’s book on crypto and Sam Bankman-Fried, Cryptomania, was released in August.
