Trump’s Meme Coin Sparks Crypto Ethics Concerns

Days before his inauguration, President Donald Trump launched $TRUMP and $MELANIA meme coins, promising safeguards like a three-year unlocking schedule for majority holders. Despite this, Trump Organization affiliates control 80% of the tokens, raising ethical concerns about personal enrichment. The Trump Org reportedly earned $58 million in trading fees on launch day.

While meme coins are often associated with scams like rug pulls, the $TRUMP coin’s rapid price surge from $6.50 to $75 was followed by a sharp decline to below $40. Critics fear Trump’s dabbling in meme coins undermines his promise to legitimize crypto and distracts from serious regulatory reforms.

Ethics watchdog Walter Shaub decried the potential conflict of interest, calling it a blow to government ethics. Crypto experts like Gareth Rhodes argue that such projects risk alienating the broader crypto community unless they become more inclusive.

The open nature of blockchain allows for rampant meme coin creation—40,000-50,000 new coins daily—fueled by speculative hype. Regulators, including the New York State Department of Financial Services, have warned of their exceptional fraud risks.

Industry leaders, however, remain optimistic that the Trump administration could bring long-needed regulatory clarity to the $3.5 trillion crypto market. While some see Trump’s meme coin launch as an embarrassment, they view it as a trade-off for moving past the restrictive oversight of former SEC Chair Gary Gensler. Still, skepticism lingers over the president’s intentions and the impact on crypto’s reputation.

Source: CNN News