The Trumps are launching their own cryptocurrency ahead of the inauguration, setting off ethics alarms
Melania Trump launched her own cryptocurrency on Sunday ahead of her husband’s presidential inauguration, just a day after his own coin was launched — moves that are raising ethical concerns among crypto industry watchers.
“The official Melania meme is live! Now you can buy $MELANIA,” the new first lady wrote on X.
Donald Trump launched his own meme coin, $TRUMP, on Saturdaymarked with images of his assassination attempt in July.
The $TRUMP coin jumped to nearly $11 billion in market value Monday morning, according to crypto data platform CoinMarketCap, potentially inflating his net worth by billions — though that figure dropped to $8 billion later in the afternoon. $MELANIA, on the other hand, had a market value of 1.7 billion dollars a few hours before the inauguration, which later fell to 1 billion dollars.
About 80 percent of Trump coin tokens are owned by CIC Digital, a subsidiary of Trump’s business, and another entity called Fight, Fight, Fight, according to its website. It says the coins are “an expression of support and engagement with the ideals and beliefs embodied in the ‘$TRUMP’ symbol,” and are not an investment or security.
The coin launch has sparked surprise and concern even among those in the cryptocurrency industry, some of whom have criticized the Trumps for capitalizing on his presidency again by launching a lucrative business product from which he and his family can profit.
“While it’s tempting to dismiss this as just another Trump spectacle, the launch of an official Trump token opens a Pandora’s box of ethical and regulatory issues,” said Justin D’Anethan, an independent crypto analyst based in Hong Kong.
“Should public figures, especially those with that kind of political influence, have that kind of influence in speculative markets? That’s a question that regulators are unlikely to ignore,” he said.
Anthony Scaramucci, Trump’s former White House communications director and now frequent critic, too blew up the move on X.
“Now virtually anyone in the world can deposit money into the bank account of the President of the United States with a few clicks. Every service – geopolitical, corporate or personal – is now for sale, out in the open,” he wrote.
Front burner25:51How Trump Fuels the Crypto Boom
Once a crypto-skeptic, US President-elect Donald Trump has changed his mind over the past year. Especially after millions of dollars from the cryptocurrency industry poured into his campaign. Now, as it embraces the internet currency, even setting up a crypto czar, the price of Bitcoin and other popular tokens is reaching new heights. Even memecoins are seeing an increase. But what happens if the volatile crypto market experiences another crash like it did in 2022? Jacob Silverman, tech journalist and host of CBC’s The Naked Emperor, joins us to discuss why there’s so much hype for crypto right now and what’s at stake if the boom goes bust. For Front Burner transcripts, visit: https://www.cbc.ca/radio/frontburner/transcripts [https://www.cbc.ca/radio/frontburner/transcripts]
Trump is an enthusiastic supporter of crypto
Cryptocurrencies are a type of digital money that can be used to pay for things in the online world, and meme coins — often unstable — are a type of cryptocurrency that is usually started by internet pranks.
Bitcoin, one of the most popular cryptocurrencies, surged after Trump’s election victory. It rose again to a record high ahead of his inauguration, after jumping more than 10 percent so far this month.
Trump coins “may actually strengthen the value of bitcoin, because they are in limited supply,” said Barry Schwartz, chief investment officer at Baskin Wealth Management in Toronto. Bitcoin was created with 21 million cap in place.
“It’s certain that Trump wants to start some sort of strategic bitcoin reserve and that crypto is part of his agenda. So there’s a reason why bitcoin continues to rise.”
The future president has been an enthusiastic supporter of cryptocurrency, announcing on the campaign trail that he would launch a strategic bitcoin reserve, and many who work in the cryptocurrency hope that restore regulations emerging industries.
Trump appointed venture capitalist David O. Sacks as the nation’s first crypto czar and became the first presidential candidate to accept crypto as a valid form of campaign donation.
Bloomberg reports that Trump could use an executive order to classify cryptocurrency as a “national priority” after his inauguration on Monday. It also has strong industry support, with crypto companies like Ripple, Robinhood and Coinbase after donating to its inaugural fund.
But the president-elect hasn’t always warmed to the digital asset: Trump called bitcoin a “fraud” in 2021, complaining that it competes with the U.S. dollar and affects the value of the U.S. dollar.
