22nd January 2025 – (Washington) President Donald Trump’s recent foray into meme coins alongside his wife has sparked controversy within the cryptocurrency industry, with critics viewing the move as a questionable cash grab that detracts from efforts to legitimise digital assets.
Despite the industry’s anticipation of a more crypto-friendly stance under the new administration, following Trump’s promises of lighter regulations and the appointment of pro-crypto officials, the launch of meme coins by the Trumps has raised concerns among industry insiders.
The announcement of Trump’s personal cryptocurrency on social media during a high-profile event dampened the excitement within the crypto community. Tom Schmidt, a partner at the crypto venture capital firm Dragonfly, expressed disappointment, describing the move as “grifty and cheap.”
Meme coins, known for their unregulated nature and speculative value, often originate as jokes without inherent worth but can experience price surges based on market demand. Notable meme coins like Dogecoin and Fartcoin exemplify this trend. The launch of the Trump meme coin initially garnered attention and saw a spike in value, reaching above $70 per coin. However, the price plummeted following the unveiling of Melania Trump’s meme coin, which also experienced a similar price fluctuation.
Trump’s appointment of SEC Commissioner Mark Uyeda as the agency’s acting chief and the establishment of a new crypto task force signal his intent to navigate the SEC towards a “sensible regulatory path” in the crypto landscape. Trump’s commitment to creating a U.S. Bitcoin stockpile and implementing industry-friendly regulations aims to facilitate broader market access for crypto companies.
However, some crypto enthusiasts are apprehensive that Trump’s association with meme coins could undermine his reform efforts within the industry. Nic Carter, a partner at Castle Island Ventures and a Trump supporter, expressed concerns that the focus on meme coins might detract from serious discussions around crypto regulation, potentially damaging the industry’s credibility.
The sale of Trump meme coins was orchestrated by CIC Digital, an affiliate of the Trump Organisation, with Trump urging supporters to “Have Fun!” The tokens are positioned as expressions of support rather than investment opportunities, with plans to release a total of 1 billion coins over the next three years.
