24th January 2025 – (New York) U.S. President Donald Trump’s recent foray into the cryptocurrency market with the launch of a meme-coin called TRUMP has drawn sharp criticism from industry insiders, especially after he admitted to knowing “not much” about the digital currency. The coin debuted on his social media accounts ahead of his inauguration, and while it initially surged to a value of $75, it has since declined to approximately $39.
Critics argue that Trump’s casual approach to the cryptocurrency space undermines its legitimacy. Danny Scott, CEO of CoinCorner, stated, “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.” This sentiment was echoed following Trump’s remarks about the coin’s financial success, where he downplayed its billions raised as “peanuts” compared to the wealth of tech billionaires present at a nearby press conference.
Meme-coins, often characterised by their speculative nature and lack of substantive utility, have become a controversial trend in the cryptocurrency landscape. Although Trump previously profited from a series of non-fungible tokens (NFTs) featuring himself in superhero poses, the launch of the TRUMP coin has elicited widespread concern among crypto enthusiasts.
Some analysts suggest that Trump’s involvement may signal a broader acceptance of cryptocurrency as a tool for capital formation. Jeff Dorman from investing firm Arca remarked that the TRUMP token might inspire other entities to explore similar ventures. However, the prevailing view within the crypto community remains sceptical, with many awaiting concrete policy proposals to support the industry.
Despite Trump’s earlier promises to make the US the “crypto capital of the planet,” his administration has yet to issue any executive orders or mention cryptocurrency in official communications since his inauguration. The TRUMP coin is currently ranked as the 25th most valuable cryptocurrency, holding a market cap of approximately $8 billion, with Trump and his team reportedly owning 80% of the total supply.
Crypto researchers at K33 have described the tokenomics of the TRUMP coin as “horrendous,” cautioning that while the substantial ownership stake protects investors from immediate market shocks, it raises questions about long-term viability. The launch also follows Melania Trump’s introduction of her own meme-coin, which has seen a significant decline in value since its debut.
Industry experts like Dan Hughes from Radix express concern that the celebrity-driven nature of such launches could overshadow genuine market value creation. Grzegorz Drozdz, a market analyst at Conotoxia, added that the timing of these launches during the presidential inauguration may raise ethical questions and undermine the dignity of the presidency.
