Trump's meme coin venture sparks backlash

Cryptocurrencies launched by Donald and Melania Trump have sparked a backlash from digital currency advocates and renewed allegations of using the presidency for profit.

The new digital tokens are "meme coins," designed to capitalize on viral trends or public figures without any real economic or transactional value.

These coins are purely speculative, with buyers essentially betting on their worth based on popularity.

Melania Trump introduced the $Melania coin the night before her husband’s presidential inauguration on Monday, while Donald Trump launched the $Donald coin the day prior.

The value of these coins has fluctuated significantly since their launch, with the $Trump coin currently valued at around $40 each, giving it an overall market value of approximately $9 billion.

U.S. President Donald Trump and first lady Melania Trump attend the Commander in Chief Ball in honor of his inauguration in Washington, U.S., January 20, 2025.Reuetrs

Around 200 million of these tokens have been issued, with plans to create 800 million more, all minted by Trump and his associates, potentially leading to a windfall worth billions.

"This memecoin represents the worst of crypto," said Rep. Maxine Waters, a Democratic congresswoman and member of the U.S. House Financial Services Committee.

"Trump has created a way to circumvent national security and anti-corruption laws, allowing interested parties to anonymously transfer money to him and his inner circle."

Websites for both coins include disclaimers stating they are not investment opportunities or securities.

Critics within the cryptocurrency industry argue that Trump's move damages the sector’s reputation as it works to recover from previous scandals and bankruptcies.

"Trump coin is stupid and embarrassing," crypto entrepreneur Erik Voorhees wrote on X. "Some in the crypto world are reacting with horror," said Molly White, a crypto skeptic.

"While they hoped Trump’s administration would be crypto-friendly, they didn’t anticipate the Trump family embracing some of the ecosystem’s worst aspects to enrich themselves."

Kevin Boon, president of Mysten Labs, cautioned that politically linked meme coins "are dangerous because they cause polarization; people can lose a lot of money."

However, some figures in the industry defend celebrity meme coins as harmless entertainment.

"The buzz underlines the playful and experimental nature of the crypto universe," said Mike Cahill, chief of blockchain firm Douro Labs.

"We as an industry shouldn't take ourselves too seriously. While some may see this as trivializing the industry, meme coins have become a gateway for broader awareness of digital assets."