President Donald Trump’s standing in the cryptocurrency world has taken a hit after he and First Lady Melania Trump introduced meme coins. Critics have labelled the move as a cash grab that undermines efforts to bring legitimacy to digital currencies.
The crypto industry, which felt targeted under the Biden administration and heavily supported Trump’s campaign, had high hopes for his presidency. Trump pledged to ease regulations and appointed pro-crypto officials to key roles, fuelling optimism for integrating crypto into mainstream financial systems. Bitcoin and other digital assets surged after his election victory, and a luxurious “Crypto Ball” ahead of his inauguration drew big names like Snoop Dogg, with tickets selling for thousands of dollars.
However, during the celebrations, Trump announced his own cryptocurrency—a meme coin—on social media. The announcement left many in the crypto community disappointed.
“I really was kind of bummed out when I saw it,” a partner at Dragonfly, a crypto venture firm, said. “It just felt very grifty and cheap.”
Some even joked online that they missed Gary Gensler, the former SEC chairman known for his tough stance on crypto regulation.
Meme coins represent one of the more speculative and chaotic corners of the crypto world. Often created as jokes with no inherent value, their prices can skyrocket if enough people invest in them; examples include Dogecoin and Fartcoin. Unfortunately, scammers frequently exploit these coins by inflating their value before selling them off to unsuspecting buyers.
Despite scepticism, some embraced Trump’s meme coin launch, driving its price above $70 initially. However, the value dropped sharply after Melania Trump introduced her own meme coin. Her coin also saw an initial price spike before falling significantly. By Tuesday afternoon, Trump’s coin was trading at about $45, while Melania’s was valued at $4.
On Tuesday, Trump appointed SEC Commissioner Mark Uyeda as acting chief of the agency. Uyeda quickly announced plans for a new crypto task force to help create a “sensible regulatory path.” Trump has also promised to build a U.S. bitcoin reserve and implement crypto-friendly policies to help companies access broader financial markets.
Still, some worry that Trump’s association with meme coins could hurt his ability to push meaningful reforms.
The sale of Trump meme coins is managed by CIC Digital, an affiliate of the Trump Organization. Promoting the tokens with the slogan “Have Fun!” the website clarifies that they are meant as symbols of support rather than investment opportunities. Currently, 200 million coins are available for purchase, with plans to release 1 billion over three years.
The Trump Organization recently released an ethics agreement restricting Trump from daily decision-making while in office and limiting his access to financial information about the business.