Trump-themed meme coins might need 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 repute of the entire cryptocurrency sector.
Questioning The Launching Of The Coins
The introduction of the meme coins didn’t sit well with some cryptocurrency executives who believed that tokens might be a conflict of interest after Donald Trump assumed the US presidency on January 20.
Crypto enterprise 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 believe presidents should concentrate on running the country and never launching scam tokens,” Carter said.
Call me quaint but I believe presidents should concentrate on running the country and never launching scam tokens
— nic golden age carter (@nic__carter) January 20, 2025
Based on Gabor Gurbacs, the founding father of PointsVille and former head of digital asset strategy at investment firm VanEck, the meme coins “cost the US, the presidency and his family loads of credibility.”
Trump needs to fireside his crypto advisors, from top to bottom and replace with individuals who know what they’re doing. The memecoins cost the US, the presidency and his family loads of credibility and the results haven’t even began.
— Gabor Gurbacs (@gaborgurbacs) January 20, 2025
Trump, Melania-Based Tokens
Days before the inauguration of the forty seventh US President, Trump made an unprecedented move of introducing the meme coins $TRUMP and $MELANIA, which each became an overnight hit amongst crypto investors.
Data showed that the meme coins reached a staggering $14,5 billion over the weekend while the Melania-themed token made about $3 billion.
“The Trump Memes are intended to operate as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$TRUMP’,” the web site of the Trump-theme tokens stated.
Nonetheless, many stakeholders of the crypto industry worry that the Trump-based tokens could tarnish the repute of the meme coin sector, a segment of the crypto space that’s attempting to regain investors’ trust after incidents of fraud and collapse.
Concerns On Memecoins
Based on a CNN news report, the decentralized nature of the blockchain has made it easy for developers to launch a latest token, “run up the worth and walk away with impunity.”
Data showed that latest memecoins being developed each day normally range from 40,000 to 50,000 with a complete market value of about $100 billion.
People acquire meme coins for novelty, which has the identical risk as if individuals would play a casino slot machine.
Crypto firm Department of XYZ general partner Matthew Homer blamed the fraud risks within the crypto space on the dearth of regulatory clarity about digital assets, a difficulty Trump pledged to handle during his administration.
Featured image from WIRED, chart from TradingView