Days before his inauguration, Donald Trump launched a cryptocurrency token named after himself, sparking outrage and controversy. The move has drawn heavy criticism from various corners, raising serious ethical questions.
A President’s Meme Coin?
The TRUMP meme coin, launched on the Solana blockchain, immediately became a lightning rod for criticism. Many questioned the appropriateness of a president-elect launching a cryptocurrency so close to assuming office.
Popular YouTuber Coffeezilla highlighted concerns about the timing, noting the upcoming appointment of a new SEC chair and suggesting the launch might be designed to avoid future legal repercussions. He tweeted: “Dropping TRUMP memecoin 2 days before becoming president is nasty work. New SEC/DOJ guarantees no prosecution.” He also pointed out that 80% of the tokens are vested to insiders during
the presidency, suggesting potential conflicts of interest.
Anthony Scaramucci, a former Trump aide, called the venture “Idi Amin level corruption,” expressing worry about its negative impact on the broader crypto market.
Accusations of Profiteering
Campaign Legal Center executive director Adav Noti accused Trump of using the presidency for personal profit, describing the coin as a “profiteering effort.” He highlighted that 80% of the tokens are slated for distribution to Trump’s inner circle, stating to the New York Times that it’s “literally cashing in on the presidency.” Other crypto industry figures echoed similar sentiments, calling the launch “predatory.”
A Meteoric Rise, Despite the Backlash
Despite the intense criticism, the TRUMP coin experienced a phenomenal initial surge. Within minutes of its launch, it reached a $400 million market capitalization, even briefly pushing Solana’s native token, SOL, to a record high. Some investors reported massive gains, with one reportedly making between $50,000 and $1.1 million in a matter of hours.
However, only 20% of the total 1 billion TRUMP coins are currently in circulation. The remaining 80% will be released over the next three years, leaving the long-term future of the coin uncertain. The rapid initial success, however, is overshadowed by the ethical concerns and potential for future market volatility.
