In the days leading up to President Trump’s inauguration, he and his family launched a new memecoin, much to the concern of some in the crypto industry.
While it’s no secret that President Donald Trump and his administration are expected to offer an easier time for crypto companies over the next four years, some within the sector are concerned about the new president’s personal stake. As of November 2024, President Trump owned $9 million worth of crypto and, just days before Mr Trump’s inauguration, the Trump family launched a new cryptocurrency product.
The fresh memecoin, $TRUMP, sparked alarm and criticism from some crypto investors and industry representatives in Washington, with fears that the new coin could add weight to criticism that the crypto sector is rife with fraud and corruption.
Memecoin described as “new depths of idiocy”
“It’s absolutely preposterous that he would do this,” said Nic Carter, founding partner at the crypto investment firm Castle Island Ventures and a self-proclaimed “avowed and explicit” Trump supporter, as reported by Politico. “They’re plumbing new depths of idiocy with the memecoin launch.”
The new product highlights that President Trump and his family are willing to take on new business opportunities, even while he is in office. The president could directly benefit from crypto-friendly policies from his own administration or a GOP-controlled Congress, leaving the industry open to criticism.
This goes against earlier promises from Mr Trump ahead of his first term that there would be “no new deals” while he was in office. This comes after the Trump family opened World Liberty Financial, a family-owned company led by the president’s eldest sons, Donald Trump Jr. and Eric Trump. With regards to $TRUMP, 80% of the memecoin is thought to be owned by the Trump family.
While Mr Trump could stand to benefit from the move, pro-crypto policies and laws were already on the way long before its launch.
Featured image: Midjourney
