Trump’s New Meme-Coin TRUMP Sparks Outrage in Crypto Community

Donald Trump faces criticism over his new meme-coin, TRUMP, launched before his inauguration. Industry insiders deem it a mockery of the crypto sphere, noting the coin’s quick rise and fall in value and calling out potential conflicts of interest. Many are concerned about the implications of celebrity-led token launches, including that of Melania Trump, as they believe it undermines the industry’s integrity.

US President Donald Trump is facing backlash after introducing a new meme-coin called TRUMP just before his inauguration. While reportedly claiming to be clueless about cryptocurrency, the digital token shot up to $75 shortly after launch, later dropping to around $39. Critics in the crypto community, including industry figures, are quick to denounce the coin as a stunt rather than a serious endeavor.

Danny Scott, CEO of CoinCorner, expressed strong skepticism towards the coin, saying, “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.” Trump’s comments only added fuel to the fire when he shrugged off the coin’s earnings, stating, “several billion – that’s peanuts for these guys,” referencing tech billionaires during a press briefing.

Meme-coins are mostly used by speculators or fans to poke fun at cultural moments, and it’s not Trump’s first venture into crypto products; back in 2022, he made waves with NFTs featuring superhero artwork. In the view of some analysts, his move into meme-coins could inspire similar efforts elsewhere, a sentiment expressed by Jeff Dorman from investing firm Arca who believes the TRUMP token signals broader acceptance of crypto as a financial mechanism.

Still, the overall reception has been mixed, with many in the crypto world looking for Trump to follow through on his campaign promises to support the industry. Last year, he vowed to transform the US into “the crypto capital of the planet,” but so far, concrete actions from the White House on this front have been virtually non-existent.

The TRUMP coin sits at 25th in crypto rankings with an estimated market value of around $8 billion. The Trump team holds a staggering 80% of the coins, raising concerns about the impact if they sell at current prices. David Zimmerman, an analyst at K33, pointedly commented, “There’s no sugar-coating this – these tokenomics are horrendous for a meme-coin,” highlighting potential issues.

Interestingly, Melania Trump also entered the fray, launching her own meme-coin just before the inauguration, which has since dipped sharply from $13 to $2.70. Some experts worry that these politically-tied token launches may cheapen the industry. Dan Hughes from Radix noted this could lead to disturbing outcomes, alerting investors to potential conflicts of interest.

Grzegorz Drozdz, a market analyst, expressed greater concern, stating, “The introduction of these coins during the presidential inauguration raises concerns about potential conflicts of interest and may undermine the dignity of the president and the first lady.” Many industry voices echo similar sentiments, anticipating that the fallout from these celebrity-driven launches might overshadow the fundamental values that should drive the crypto market.

In short, Trump’s introduction of the TRUMP meme-coin has stirred considerable controversy in the cryptocurrency community, drawing skepticism from industry experts concerned about its lack of utility and potential conflicts of interest. The overwhelming criticism, combined with a mixed market reception, serves as a reminder of the complex relationship between celebrity and cryptocurrency, raising questions about the integrity of both. As analysts and insiders await any real reforms, the launch of these meme-coins by political figures may have deeper implications for the crypto landscape moving forward.

Original Source: www.bbc.co.uk