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The recent launch of the $TRUMP and $MELANIA tokens by Donald Trump and his wife Melania has sparked reactions worldwide. While these tokens are worth billions, ethical experts and analysts have raised concerns about potential conflicts of interest and legal risks.
Launch of the $TRUMP and $MELANIA Tokens
A few days before his inauguration, Trump introduced the $TRUMP token, followed by the $MELANIA token. Together, these memecoins have an estimated market capitalization exceeding $9 billion. Both tokens are primarily managed by pro-Trump organizations such as CIC Digital and Fight, Fight, Fight.
According to documents, 80% of the tokens remain under the control of these organizations, raising questions about transparency and the true purpose of the coins. The $TRUMP token initially experienced a rapid price surge but fell by 15% during the inauguration. Despite this, the token remains a popular choice among investors.
The chart shows TRUMP/USDT and MELANIA/USDT experiencing a sharp decline, with MELANIA dropping over 50% and TRUMP following a similar bearish trend. Both assets appear to be in a consolidation phase, struggling to regain upward momentum.
Criticism from Ethical Experts
Former ethics advisors and experts have harshly criticized the launch of the tokens. Norman Eisen, a former advisor under President Obama, called it one of the greatest conflicts of interest in modern presidential history.
“Trump is in a position to both regulate and profit from this market. This is an unprecedented and dangerous situation,” Eisen stated.
Similarly, James Thurber, founder of the Center for Congressional and Presidential Studies, expressed concerns about the lack of transparency, stating:
“Trump appears to be more motivated by profit than by public interest.”
Legal Risks and Warnings
Cryptocurrency expert Preston Byrne predicts that a lawsuit against the $TRUMP token will be filed within weeks. Byrne referred to these tokens as “legal minefields” due to their association with a sitting president and the potential financial harm to investors.
Billionaire investor Mark Cuban, an outspoken Trump critic, called the situation “a disaster in the making”. He warned that the hype surrounding the tokens will likely harm many small investors.
Donald Trump in Trouble?
According to Gerald Connolly of the Democratic Party, Donald Trump’s activities in the crypto world conflict with his presidential duties. It increasingly appears that he is abusing his position for financial gain.
In Congress, concerns are growing not only about his memecoin $TRUMP but also about World Liberty Financial (WLF), the Trump family’s decentralized investment fund on Ethereum.
According to Connolly, Trump’s WLF is particularly problematic because Justin Sun, the founder of Tron, is its largest investor. Sun is a foreign entrepreneur who has repeatedly clashed with the U.S. Securities and Exchange Commission (SEC).
Lawmakers in Congress now fear potential foreign influence over Donald Trump’s policies, as Justin Sun is originally from China.
Sun invested $75 million in World Liberty Financial by purchasing the project’s token.
Trump Claims He Knows Nothing
Perhaps the most surprising moment came yesterday during an interview, where Trump admitted he knows little about his own memecoin. He even seemed unaware that the project had already generated billions of dollars for him.
“I don’t know where it is. I don’t know much about it other than I launched it, other than it was very successful,” Donald Trump said about his memecoin.
🚨 JUST IN: President Trump found out that he made several billions with his memecoin launch and said that it’s peanuts. pic.twitter.com/wlXv6xt6xW
— Cointelegraph (@Cointelegraph) January 21, 2025
Donald Trump truly remains the only president in the world from whom such things could be expected. It’s highly unlikely that Vladimir Putin or Xi Jinping will be launching their own memecoins anytime soon.
In that sense, Trump’s presidency is shaping up to be one of the most unusual yet—crypto and all.
Impact on the Crypto Market
The launch of these tokens coincided with a sharp surge in the crypto market, with Bitcoin surpassing $109,000. Analysts partially attribute this rally to speculation that Trump may establish a strategic Bitcoin reserve and loosen regulations on digital assets. However, this optimism is overshadowed by concerns about possible insider trading and the centralization of these tokens.
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