Trump-themed meme coins might have excited some investors with its emergence but several executives of crypto firms think otherwise, worrying that the Trump tokens could do more harm than good to the industry.
Cryptocurrency executives fear that the $TRUMP and $MELANIA tokens could create a backlash from traders and damage the reputation of the whole cryptocurrency sector.
Questioning The Launching Of The Coins
The introduction of the meme coins did not sit well with some cryptocurrency executives who believed that tokens could be a conflict of interest after Donald Trump assumed the US presidency on January 20.
Crypto venture capital firm Castle Island Ventures founding partner Nic Carter said that he disagrees with the president venturing into the crypto space while running the country.
“Call me old-fashioned but I think presidents should focus on running the country and not launching scam tokens,” Carter said.
Call me old fashioned but I think presidents should focus on running the country and not launching scam tokens
— nic golden age carter (@nic__carter) January 20, 2025
According to Gabor Gurbacs, the founder of PointsVille and former head of digital asset strategy at investment firm VanEck, the meme coins “cost the US, the presidency and his family a lot of credibility.”
Trump needs to fire his crypto advisors, from top to bottom and replace with people who know what they are doing. The memecoins cost the US, the presidency and his family a lot of credibility and the consequences haven’t even started.
— Gabor Gurbacs (@gaborgurbacs) January 20, 2025
Trump, Melania-Based Tokens
Days before the inauguration of the 47th US President, Trump made an unprecedented move of introducing the meme coins $TRUMP and $MELANIA, which both became an overnight hit among crypto investors.
Data showed that the meme coins reached a staggering $14,5 billion over the weekend while the Melania-themed token made about $3 billion.
“The Trump Memes are intended to function as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$TRUMP’,” the website of the Trump-theme tokens stated.
However, many stakeholders of the crypto industry worry that the Trump-based tokens could tarnish the reputation of the meme coin sector, a segment of the crypto space that is trying to regain investors’ trust after incidents of fraud and collapse.
Concerns On Memecoins
According to a CNN news report, the decentralized nature of the blockchain has made it easy for developers to launch a new token, “run up the price and walk away with impunity.”
Data showed that new memecoins being developed every day usually range from 40,000 to 50,000 with a total market value of about $100 billion.
People acquire meme coins for novelty, which has the same risk as if individuals would play a casino slot machine.
Crypto firm Department of XYZ general partner Matthew Homer blamed the fraud risks in the crypto space on the lack of regulatory clarity about digital assets, an issue Trump pledged to address during his administration.
Featured image from WIRED, chart from TradingView
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