‘Horrible look’: Crypto lobby stung by Trump’s ‘memecoin’ remark
Trump's memecoin has gained significant traction since its launch late Friday night. However, not all members of the crypto community are excited about it.
TroibNews 
In the final days before his swearing-in as the 47th president, President-elect Donald Trump and his family are set to introduce a new cryptocurrency product.
This move has raised concerns among some in the crypto community. While the digital assets sector stands to benefit from potential policy changes under a second Trump administration, his recent announcement regarding a memecoin—a cryptocurrency token without intrinsic value—is causing unease. Industry representatives fear that this memecoin could bolster accusations of fraud and consumer risk within the crypto space.
“It’s absolutely preposterous that he would do this,” said Nic Carter, a founding partner at Castle Island Ventures and a self-described “avowed and explicit” Trump supporter. “They’re plumbing new depths of idiocy with the memecoin launch.”
The decision to unveil a new crypto product days before taking office underscores the challenges Trump faces. Memecoins, a subset often dubbed “shitcoins,” encompass highly volatile and speculative assets, such as Dogecoin and Fartcoin. Losses incurred by investors could reflect poorly on Trump and the broader crypto industry.
The launch also indicates that Trump and his family are eager to pursue business opportunities that might benefit from favorable policies created by their own administration or a Republican-controlled Congress. During his first term, Trump had pledged no new deals while in office. Now, his sons, Donald Trump Jr. and Eric Trump, are establishing their own crypto venture, World Liberty Financial, which raised similar concerns among crypto advocates during the campaign.
According to its website, a Trump-owned company holds 80 percent of the memecoin’s total supply.
“It’s awful,” expressed one Washington lobbyist who spoke anonymously to address sensitive matters within the sector. “This is a horrible look for the industry already trying to make the case that we’re not a bunch of hucksters, scammers and fraudsters.”
The coin has already attracted criticism from Democrats. Rep. Sean Casten, a member of the House Financial Services Committee known for his skepticism towards crypto, stated that Trump “continues to make clear he will not let detriments to his supporters or ethics stand in the way of enriching himself."
Despite concerns about Trump’s new coin, many do not anticipate it will significantly hinder the crypto sector's expected policy gains. Trump has previously released other cryptocurrency products, and Republicans in Congress are enthusiastic about advancing regulatory reforms that could encourage industry growth.
Lawmakers and advocates in Washington are poised to implement significant measures that may enhance the legitimacy of crypto. Republicans are expected to establish new subcommittees and working groups focused on digital assets and have committed to passing legislation aimed at fostering a friendlier regulatory environment, which would protect firms from the enforcement actions they faced during the Biden administration.
Trump’s transition team did not return requests for comment on Sunday. Eric Trump promoted the coin on X, stating that he is “extremely proud of what we continue to accomplish in crypto.”
“We are just getting started!” he added.
The memecoin has gained significant traction since its debut late Friday night. By 6:15 p.m. ET on Sunday, the token had surged to $44.95, positioning it as the 24th most valuable token in the world, with a fully diluted market capitalization exceeding $45 billion, according to CoinGecko. Major crypto exchanges, including Coinbase and Binance, were already considering listing it, with Kraken having added the memecoin for trading the previous afternoon.
The Trump family’s expansion into memecoins escalated on Sunday when Melania Trump revealed her own token, named MELANIA. Shortly after its launch, Trump’s token experienced a decline in trading.
Memecoins have been a fixture in cryptocurrency markets for years, with Dogecoin being the most notable example. Initially launched as a joke, its popularity has swelled over time, often influenced by its most prominent backer, Elon Musk.
However, many other memecoins have failed to gain traction. The Securities and Exchange Commission has aggressively pursue legal actions against various prominent players in the crypto market but has largely avoided tackling the speculative area where memecoins operate, mainly due to uncertainties surrounding its regulatory jurisdiction, as noted by Marc Fagel, a former SEC official.
“Is [it] healthy to have so much money tied up in what are essentially pyramid schemes?” Fagel questioned. “Of course not. But what are the tools to prevent that? We don’t have a lot of legal tools to prevent people from doing things that are really dumb with their money.”
The sustainability of the Trump memecoin's rise remains uncertain.
Carter suggested it might endure longer than many other tokens due to Trump’s influence, drawing a parallel to shares of the president-elect’s social media company, Trump Media & Technology Group, which have similarly thrived despite uncertainties about its future. However, Carter cautioned, “at the end of the day, there’s no fundamentals to this thing.”
“It’s going to bite a lot of people in the ass — including people who believe in crypto,” warned a financial industry executive who spoke anonymously due to their lack of authorization for public comments. “But nothing ever seems to hurt him.”
Frederick R Cook contributed to this report for TROIB News
This move has raised concerns among some in the crypto community. While the digital assets sector stands to benefit from potential policy changes under a second Trump administration, his recent announcement regarding a memecoin—a cryptocurrency token without intrinsic value—is causing unease. Industry representatives fear that this memecoin could bolster accusations of fraud and consumer risk within the crypto space.
“It’s absolutely preposterous that he would do this,” said Nic Carter, a founding partner at Castle Island Ventures and a self-described “avowed and explicit” Trump supporter. “They’re plumbing new depths of idiocy with the memecoin launch.”
The decision to unveil a new crypto product days before taking office underscores the challenges Trump faces. Memecoins, a subset often dubbed “shitcoins,” encompass highly volatile and speculative assets, such as Dogecoin and Fartcoin. Losses incurred by investors could reflect poorly on Trump and the broader crypto industry.
The launch also indicates that Trump and his family are eager to pursue business opportunities that might benefit from favorable policies created by their own administration or a Republican-controlled Congress. During his first term, Trump had pledged no new deals while in office. Now, his sons, Donald Trump Jr. and Eric Trump, are establishing their own crypto venture, World Liberty Financial, which raised similar concerns among crypto advocates during the campaign.
According to its website, a Trump-owned company holds 80 percent of the memecoin’s total supply.
“It’s awful,” expressed one Washington lobbyist who spoke anonymously to address sensitive matters within the sector. “This is a horrible look for the industry already trying to make the case that we’re not a bunch of hucksters, scammers and fraudsters.”
The coin has already attracted criticism from Democrats. Rep. Sean Casten, a member of the House Financial Services Committee known for his skepticism towards crypto, stated that Trump “continues to make clear he will not let detriments to his supporters or ethics stand in the way of enriching himself."
Despite concerns about Trump’s new coin, many do not anticipate it will significantly hinder the crypto sector's expected policy gains. Trump has previously released other cryptocurrency products, and Republicans in Congress are enthusiastic about advancing regulatory reforms that could encourage industry growth.
Lawmakers and advocates in Washington are poised to implement significant measures that may enhance the legitimacy of crypto. Republicans are expected to establish new subcommittees and working groups focused on digital assets and have committed to passing legislation aimed at fostering a friendlier regulatory environment, which would protect firms from the enforcement actions they faced during the Biden administration.
Trump’s transition team did not return requests for comment on Sunday. Eric Trump promoted the coin on X, stating that he is “extremely proud of what we continue to accomplish in crypto.”
“We are just getting started!” he added.
The memecoin has gained significant traction since its debut late Friday night. By 6:15 p.m. ET on Sunday, the token had surged to $44.95, positioning it as the 24th most valuable token in the world, with a fully diluted market capitalization exceeding $45 billion, according to CoinGecko. Major crypto exchanges, including Coinbase and Binance, were already considering listing it, with Kraken having added the memecoin for trading the previous afternoon.
The Trump family’s expansion into memecoins escalated on Sunday when Melania Trump revealed her own token, named MELANIA. Shortly after its launch, Trump’s token experienced a decline in trading.
Memecoins have been a fixture in cryptocurrency markets for years, with Dogecoin being the most notable example. Initially launched as a joke, its popularity has swelled over time, often influenced by its most prominent backer, Elon Musk.
However, many other memecoins have failed to gain traction. The Securities and Exchange Commission has aggressively pursue legal actions against various prominent players in the crypto market but has largely avoided tackling the speculative area where memecoins operate, mainly due to uncertainties surrounding its regulatory jurisdiction, as noted by Marc Fagel, a former SEC official.
“Is [it] healthy to have so much money tied up in what are essentially pyramid schemes?” Fagel questioned. “Of course not. But what are the tools to prevent that? We don’t have a lot of legal tools to prevent people from doing things that are really dumb with their money.”
The sustainability of the Trump memecoin's rise remains uncertain.
Carter suggested it might endure longer than many other tokens due to Trump’s influence, drawing a parallel to shares of the president-elect’s social media company, Trump Media & Technology Group, which have similarly thrived despite uncertainties about its future. However, Carter cautioned, “at the end of the day, there’s no fundamentals to this thing.”
“It’s going to bite a lot of people in the ass — including people who believe in crypto,” warned a financial industry executive who spoke anonymously due to their lack of authorization for public comments. “But nothing ever seems to hurt him.”
Frederick R Cook contributed to this report for TROIB News
