When Donald Trump was elected president in November, many in the cryptocurrency community celebrated, inspired by his promises of deregulation and support for crypto innovators. Just prior to his inauguration, key players in the crypto world gathered in Washington for the Crypto Ball, reveling in their newfound influence within the political landscape.

Amidst the festivities, Trump made a surprising announcement: he was launching a new cryptocurrency called TRUMP. This digital asset, classified as a meme coin, lacks real value and experiences price fluctuations based purely on market dynamics. Supporters of Trump and opportunistic traders have generated billions in trading volume, driven by loyalty, excitement, and the promise of quick returns. The creators of the coin—companies linked to the Trump organization—are reportedly reaping billions in theoretical profits. Following its launch, Melania Trump also introduced her own meme coin, which displayed erratic price movements. By Wednesday, TRUMP had climbed to the 25th position in the global cryptocurrency rankings, according to CoinMarketCap, trading at around $43, a notable decline from its peak of $75.

Read More: What Trump’s Win Means for Crypto.

The launch of Trump’s meme coins has sparked significant interest in the cryptocurrency sector, drawing in a wave of newcomers. For some, these coins reflect Trump’s commitment to the growth of cryptocurrency. However, many in the crypto community have reacted negatively, perceiving it as a blatant attempt to profit from his supporters. With Trump’s team holding over 80% of the total token supply, they have substantial control over its market value. While they are unable to sell their holdings for several months, such actions could potentially devastate the market, resulting in losses for ordinary investors.

Veterans of the crypto realm are worried that these tokens might foster public skepticism towards an already problematic industry filled with scams and unscrupulous actors. Angela Walch, a researcher and writer focused on cryptocurrency, expressed concern: “The crypto sector has enabled someone whose primary action is to exploit the potential for corruption within the space. That’s just embarrassing.”

Trump has downplayed his role in the coin’s creation, stating during a press conference on January 21: “I don’t know much about it beyond the fact that I launched it.” The Trump Organization did not immediately respond to requests for comment, and a White House spokesperson declined to provide a statement.

Nevertheless, lawmakers and legal analysts are expressing ethical and geopolitical concerns regarding these tokens, claiming they could facilitate bribery and create conflicts of interest. “These coins offer a way for him to secure financial benefits from foreign adversaries, placing his personal interests above those of Americans,” commented Puja Ohlhaver, a lawyer affiliated with Harvard’s Allen Lab for Democracy Renovation.

What are meme coins?

TRUMP and MELANIA are prime examples of meme coins: cryptocurrencies developed by entrepreneurs using code on a blockchain. Their value largely hinges on public perception and market demand. To create excitement, the teams behind these coins often leverage popular memes that spread rapidly across social media. The premise is that if memes can influence culture, creativity, and ideologies, they should also hold financial worth.

Notable examples include Dogecoin and Shiba Inu, with Dogecoin experiencing significant price spikes due to tweets from Elon Musk. The lack of intrinsic value makes meme coins especially volatile and speculative, attracting some investors eager to capitalize on timing. However, buying at market highs can lead to swift losses. Moreover, meme coins have been associated with alleged scams, resulting in considerable investor setbacks.

Historically, Trump supporters have utilized memes as effective marketing tools. During his presidential campaign, a group of content creators flooded social media with pro-Trump memes. Last summer, unofficial Trump-themed meme coins such as Pepe (TRUMP) and Maga People Token (PEOPLE) experienced volatility, with some bettors interpreting them as indicators of his electoral prospects.

Trump also has a history of using crypto for profit. He began selling NFT trading cards in 2022, reportedly earning millions from them, as revealed in financial disclosures. In September, he launched World Liberty Financial, a cryptocurrency platform that has yet to be operational. As of 2025, meme coins continue to present a quick avenue for aspiring crypto entrepreneurs to generate revenue.

TRUMP starts trading

On January 18, just two days prior to his inauguration, Trump announced his token through CIC Digital LLC, a subsidiary of the Trump Organization, during the ongoing Crypto Ball. This unexpected revelation shocked the industry. Nick O’Neill, a crypto entrepreneur present at the event featuring Snoop Dogg and Speaker Mike Johnson, shared a video on X, noting that few attendees were aware of the token’s introduction.

The following day, an intense buying and selling frenzy ensued, resulting in significant consequences. The Solana blockchain supporting the token and Coinbase, the platform for trading it, faced notable transaction delays. “We did not expect this level of demand,” tweeted Coinbase CEO Brian Armstrong.

Within 24 hours, the team managing the token, led by CIC Digital, reported paper holdings worth around $51 billion. (This number is somewhat misleading, as attempting to cash out would likely drive the price down.) On the same day, Melania Trump launched her meme coin, MELANIA, which resulted in a significant decline in TRUMP’s market cap as traders redirected their investments. Following MELANIA’s launch, TRUMP’s value plummeted from over $70 to about $45 within just an hour. A counterfeit BARRON meme coin, unconnected to Trump’s youngest son, also briefly reached a market cap of $460 million before crashing by 95%.

Some of Trump’s most dedicated crypto supporters accused him of exploitative practices regarding the coin’s launch. The fundamental principle of crypto is decentralization; however, Trump’s team controls over 80% of the TRUMP token’s supply. Another blockchain analytics firm, Bubblemaps, found that 89% of MELANIA’s tokens were concentrated in a single wallet. Conor Gregor, a Coinbase executive, noted that Trump’s team generated $58 million solely from trading fees.

“Trump’s credibility has been completely undermined,” stated investment manager Michael A. Gayed. Anthony Scaramucci, Trump’s former communications director and a crypto proponent, remarked: “No one can genuinely believe this is beneficial for our society.”

“There’s significant self-reflection happening in the industry at the moment,” Walch observes. “Yes, we gained influence, but did it really serve the original goals we set out to achieve?”

Ethical and national security issues

Critics from outside the crypto community have raised ethical concerns. Trump is now directly engaged in a sector he oversees as a regulator. (The companies associated with him argue that Trump tokens “are not investments or securities but merely an expression of support.”) Opponents argue that Trump’s financial gains from cryptocurrency could compromise his ability to enforce regulations that might significantly affect the value of his tokens. Representative Ro Khanna, a California Democrat and prominent crypto advocate, suggested on X that “Elected officials should be legally barred from holding meme coins.”

Some observers worry that these tokens could pose a national security risk, as they provide foreign entities with the opportunity to acquire large amounts of the token, potentially swaying Trump’s decision-making. These actors might purchase tokens to gain favor or threaten to sell them, which could result in a sharp decline in the token’s value. By employing cryptographic methods, they could even conceal their identities from everyone except Trump, as Ohlhaver from the Allen Lab asserts.

The Emoluments Clauses in the Constitution were established to prevent such conflicts of interest, prohibiting a President from leveraging their office for personal enrichment. Historically, gift-giving was a common corrupt practice among European leaders and diplomats. Some argue that since Trump’s token launch occurred before his inauguration, he was acting as a private citizen. “It’s easier for them to launch these BEFORE he officially takes office,” commented crypto journalist Zack Guzmán on X. “Claiming Trump is profiting from the presidency and violating the Emoluments Clause would have been much simpler if it hadn’t been.”

Nonetheless, Ohlhaver argues that as long as Trump retains ownership of the tokens, a substantial conflict of interest remains. “He still owns tokens that would appreciate in value if a foreign adversary artificially inflates them,” she asserts. Ohlhaver also believes that Trump’s meme coin undermines public understanding of currency itself. “In today’s social media-driven world, it’s alarmingly easy to exploit one’s influence to create a new form of currency and legitimize it,” she explains. “It’s vital to protect our national public goods and ensure they serve the interests of the collective, rather than merely benefiting a select few at the expense of the broader population.”

Andrew R. Chow’s book on cryptocurrency and Sam Bankman-Fried, Cryptomania, was published in August.