The president has taken a bold step into the world of digital currency by launching a multibillion-dollar cryptocurrency meme coin called $TRUMP on Friday evening. Marketed as a way to "celebrate everything we stand for: WINNING!", the coin quickly gained attention with a market value soaring above $9 billion. However, concerns are mounting over potential conflicts of interest and the implications for U.S. policy.
The $TRUMP coin is predominantly owned by CIC Digital, an affiliate of Trump's business, holding 80% of the tokens. Another entity, Fight, Fight, Fight, also possesses a portion. Despite an initial surge over the weekend, the coin's value faded on Monday, coinciding with the president's inaugural ceremonies. Meanwhile, the president's wife, Melania, launched her own cryptocurrency meme coin called $MELANIA, offered by MKT World LLC, a firm she incorporated in 2021. Unfortunately, the Melania coin experienced a significant drop by a quarter on Monday.
The president has expressed an ambitious vision of transforming the U.S. into the crypto capital of the world and vows to support the cryptocurrency industry during his tenure. However, these actions have raised alarms among former government officials who view them as conflicts of interest. Walter Shaub remarked on the situation, stating:
"America voted for corruption, and Trump is wasting no time delivering it," – Walter Shaub
He further commented on the state of government ethics:
"What was once a government ethics program, made partly of laws and partly of norms, is a smoldering crater." – Walter Shaub
The White House has been approached for comments on the Trump coin, but no official statements have been released.
Cryptocurrency experts predict legal challenges as a result of these developments. Preston Byrne noted:
"Someone will lose money, some lawyer will come up with a theory and file." – Preston Byrne
Lawyer specializing in cryptocurrencies estimates a 90% chance of a civil lawsuit being filed within 14 days. This prediction comes amid speculation that the president's personal fortune, estimated at $6.7 billion by Forbes, could be inflated by the Trump coin.
The controversy does not stop at legal concerns. Prominent entrepreneur Mark Cuban voiced his skepticism:
"It's just a matter of time until a lot of people lose money from this," – Mark Cuban
He distinguished between traditional cryptocurrencies and the president's venture:
"I'm a crypto fan. This is not crypto any more than [infamous fraudster Bernie] Madoff was just buying and selling shares of stock." – Mark Cuban
James Thurber echoed concerns regarding conflicts of interest involving the president's family business benefiting from his cryptocurrency policies:
"There are shameful and major conflicts of interest with respect to his family business benefiting from his cryptocurrency policies," – James Thurber