Bloomberg: Trump's Actions Are Hurting the Crypto Industry

According to Bloomberg, meme coins associated with Donald Trump and his wife Melania are damaging the United States' credibility in global markets. Read Full Article at RT.com.

Bloomberg: Trump's Actions Are Hurting the Crypto Industry
Cryptocurrency industry leaders have criticized President-elect Donald Trump and his wife Melania for the couple's recent launch of highly volatile meme coins, according to a report from Bloomberg on Monday. Executives in the sector are concerned that these new tokens could harm global confidence in digital assets.

On Friday, just before his inauguration, Trump introduced his $TRUMP coin, which surged from $10 to $72 within hours before settling at $64. Shortly after, Melania Trump revealed her own meme coin, $MELANIA, which also saw a swift increase in value. However, the rise of $MELANIA coincided with a drop in $TRUMP, causing its price to plummet from over $75 to the low $40s.

This market activity has alarmed experienced crypto investors. “The launches are now clearly a blight that we will have to work to put behind us as builders,” remarked Rob Hadick, a general partner at Dragonfly Capital. Gabor Gurbacs, director of digital-asset strategy at investment firm VanEck, added, “The memecoins cost the US, the presidency and his family a lot of credibility,” calling for Trump to “fire his crypto advisors, from top to bottom and replace [them] with people who know what they are doing.”

Meme coins such as $TRUMP, $MELANIA, and DOGE are notorious for their extreme price swings and lack of fundamental value, making them speculative investments. Unlike stablecoins, which are tied to stable assets like the US dollar, meme coins often thrive on social media buzz.

While Trump previously labeled cryptocurrency a “scam,” he appears to have shifted his viewpoint, pledging last year to establish the US as the “crypto capital of the planet.” Despite facing criticism for his seemingly trivial approach to cryptocurrency, there are no US laws preventing a sitting or incoming president from launching their own digital asset.

Sophie Wagner contributed to this report for TROIB News