Bitcoin fans were hoping for something other than a clown show of meme coins.
Crypto Fans Thought Trump Would Bring Legitimacy
The Wall Street Journal reports Crypto Thought Trump Would Bring It Legitimacy. Then He Launched a Meme Coin.
The crypto industry eagerly awaited Donald Trump’s return to the White House. Now, it’s reeling after the president and first lady launched a pair of meme coins.
Dubbed $TRUMP and $MELANIA, the tokens have no economic purpose—their value is largely based on the popularity of internet memes. The market cap of the president’s coin has soared to $7.8 billion since Friday night’s launch, while the first lady’s token is worth about $800 million, according to CoinMarketCap.
By selling coins known for their speculative nature and extreme volatility, the president has undermined the credibility that the industry has worked hard to build in recent years, some crypto executives and investors say.
They also point to the brazen conflict of interest: Trump benefits directly from the sale of the tokens while setting the policy that affects how markets are valued and regulated.
Even the most ardent Trump supporters reached a breaking point when the $MELANIA token launched less than 48 hours after the rollout of her husband’s coin.
Ryan Selkis, the former chief executive of crypto research firm Messari and a vocal supporter of Trump, urged the president to fire the adviser who recommended going forward with the launch of the second coin.
“1. They don’t know what they’re doing. 2. They cost you a lot of $ and goodwill. 3. They don’t have your interests in mind,” said Selkis in a social-media post shortly after the $MELANIA token launch.
Some crypto enthusiasts questioned if the coins were a scam and if Trump’s accounts had been hacked. The mechanisms on the token reminded some of a rug pull, crypto parlance for a project that is launched and quickly abandoned, leaving investors with steep losses.
One point of criticism: 80% of the $TRUMP token’s supply is owned by Fight Fight Fight and CIC Digital, an affiliate of the Trump Organization, according to the website associated with the token. The terms and conditions of both $TRUMP and $MELANIA bar buyers from joining class-action lawsuits against the project and indemnify the project against any claims.
In launching the tokens, Trump has waded into a longstanding divide in the world of crypto: staid technology enthusiasts who see crypto as a means of financial inclusion and innovation versus speculative investors who see it as a means to monetize brands, memes and ideas.
The backlash over the Trump meme coins reached beyond the crypto industry. Michael Gayed, a portfolio manager and market analyst who publishes the Lead-Lag Report, posted criticism of the coin on X that drew support within the crypto community.
“There’s a general level of disgust,” said Gayed. “I do believe this puts into question some of Trump’s credibility when we have a president-elect enrich himself just before inauguration and make a mockery of an entire ecosystem.
“To me, it’s a glaringly obvious top signal,” said Quinn Thompson, founder of crypto hedge fund Lekker Capital. “Everyone’s extremely exuberant with high animal spirits.”
Down 50% Since Weekend Peak
Forbes reports Trump and Melania Meme Coins Down 50% Since Weekend Peak
Trump announced the launch of his meme coin in a Truth Social post on Friday night, saying: “My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING!” The token’s price surged overnight and had more than tripled by Saturday morning before hitting an all-time high of $75 on Sunday. The coin’s website says 200 million tokens were made available at launch and overall supply will slowly grow to a billion tokens over the next three years. The unreleased 800 million tokens are currently being held by Trump Organization affiliate CIC Digital LLC and Fight Fight Fight LLC—which was incorporated in Delaware on January 7.
The first lady announced the launch of her coin on Sunday afternoon. The $MELANIA meme coin was being distributed by MKT World, a Florida company incorporated by Melania Trump in 2021. According to the coin’s website, the first lady’s team has reserved 35% of the token’s supply—which will remain locked for the first 30 days. Like the $TRUMP coin website, the $MELANIA purchase page also includes a disclaimer stating the tokens are “digital collectibles intended to function as an expression of support for and engagement with the values embodied by the symbol MELANIA. and the associated artwork.” The note then adds that the meme coins are not intended to be “an investment opportunity, investment contract, or security of any type.”
Price Action
- The OFFICIAL TRUMP token or $TRUMP, fell to $37.85 on Tuesday morning—down around 50% from Sunday’s peak of around $75.
- The selloff has slashed $TRUMP to $7.56 billion—down from more than $15 billion on Sunday—although it remains the 25th most valuable crypto token in the market.
- The price of the first lady’s “Official Melania Meme” or $MELANIA token stood at $4.31 on Tuesday—down nearly 70% from its peak of $13.70 on Monday.
- The $MELANIA meme coin’s market cap has fallen below $900 million, a steep drop from the $2 billion mark it breached on Monday—hours after its launch.
The maximum supply of Bitcoin is 21 million. The maximum supply of $Trump is 1 billion, of which 800 million is held by a Trump organization affiliate.
I have no idea if this is a top, nor does anyone else. But I do know a conflict of interest, sheetshow when I see one.
Disgust is not the right word. This is a sheetshow * two.