US President Donald Trump has found himself at the center of criticism yet again, this time for launching a cryptocurrency meme-coin dubbed “TRUMP.” Despite its rapid initial success, the coin’s introduction has drawn ire from crypto industry insiders, who view it as a publicity stunt undermining the credibility of the digital asset ecosystem.
The digital coin, which surfaced on Trump’s social media accounts ahead of his inauguration, skyrocketed in value, reaching $75 per coin on its first day. However, the price has since plummeted to $39. The TRUMP token, described as a meme-coin with no functional utility beyond speculative trading or fan support, has been accused of trivializing the serious potential of blockchain technology.
Danny Scott, CEO of CoinCorner, expressed dismay over the launch, stating, “Trump’s comments about not knowing much about the coin back up my opinion that he is making a mockery of the industry. It’s a stunt.” Scott’s concerns were amplified after Trump casually dismissed the coin’s multibillion-dollar fundraising success, calling it “peanuts” in comparison to tech billionaires’ fortunes.
Many cryptocurrency analysts have voiced concerns about the ethical and structural issues surrounding TRUMP token. Researchers at K33 described its tokenomics—where Trump and his team retain 80% of the coins—as outdated and detrimental for investors. David Zimmerman, a K33 analyst, remarked, “There’s no sugar-coating this – these tokenomics are horrendous for a meme-coin.” Although the setup shields investors from sudden price shocks by limiting market dumping, the heavy concentration of tokens in the hands of Trump’s team raises fears of undue influence and manipulation.
Dan Hughes from crypto firm Radix warned of the dangers posed by celebrity-driven token launches, particularly from high-profile political figures. “This pattern of celebrity-driven token launches, especially from political figures, marks a concerning trend in crypto markets where influence and liquidity manipulation could overshadow fundamental value creation,” Hughes explained.
Critics have also highlighted potential conflicts of interest arising from the coin’s launch. Grzegorz Drozdz, a market analyst at Conotoxia, suggested that launching meme-coins during the presidential inauguration undermines the dignity of the president and raises ethical concerns. “These initiatives degrade the image of cryptocurrency, turning it into a tool for quick profit rather than fostering innovation and inclusion,” Drozdz stated.
Adding to the controversy, First Lady Melania Trump also launched her own meme-coin on the eve of the inauguration. Initially valued at $13 per coin, it has since slumped to $2.70, with a market value of $700 million. Such ventures have led to broader skepticism about the role of meme-coins in crypto markets, especially when tied to influential figures.
Despite widespread criticism, some view TRUMP token as a potential catalyst for innovation in the crypto space. Jeff Dorman from investment firm Arca sees the coin as a signal for broader adoption of crypto as a capital-raising mechanism. “TRUMP token just signaled to every company, municipality, university, and individual brand that crypto can now be used as a capital formation and customer bootstrapping mechanism,” Dorman posted online.
Still, the overall sentiment remains negative. Many crypto enthusiasts and industry leaders are awaiting concrete action from the Trump administration to fulfill campaign promises of making the US the “crypto capital of the planet.” Thus far, no executive orders or significant initiatives have been introduced, leaving skeptics questioning the administration’s commitment to meaningful crypto development.
The introduction of meme-coins like TRUMP and the First Lady’s token has spotlighted the volatility and speculative nature of such assets. While they offer opportunities for quick gains, they also risk undermining the foundational principles of blockchain technology—transparency, decentralization, and equitable access. As more celebrities and political figures enter the crypto space, the industry faces a critical juncture: Will it prioritize genuine innovation or succumb to the allure of short-term profits?
For now, the TRUMP token’s rapid rise and fall serve as a cautionary tale, sparking necessary debate about the future of cryptocurrency and its role in society.
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