Alan Suderman, AP Business Writer
President Donald Trump’s goodwill in the cryptocurrency industry has been tarnished after he and his wife launched a meme coin. Critics say the move looks like an unseemly cash grab that undermines efforts to legalize digital assets.
The industry feels unfairly targeted by the Biden administration, which has spent millions to help Trump win, and is hoping to support the new president in making cryptocurrencies a bigger part of the mainstream financial system. I long for it. President Trump has promised to ease regulations and appointed pro-cryptocurrency bureaucrats to key government positions.
The price of Bitcoin and other digital assets has soared since President Trump won. Tickets sold for thousands of dollars at the extravagant Crypto Ball held Friday ahead of President Trump’s inauguration, which featured a performance by rapper Snoop Dogg.
But while that party was underway, Trump announced on social media that he would be offering his own cryptocurrency in the form of meme coins. This move soured the mood of many in the cryptocurrency community.
“I was really disappointed when I saw this,” said Tom Schmidt, a partner at crypto venture capital firm Dragonfly. “It felt very creepy and cheap.”
Some crypto enthusiasts are considering recently departed Securities and Exchange Commission Chairman Gary Gensler, who was considered the Biden administration’s main crypto adversary, due to the SEC’s aggressive enforcement actions against crypto companies. Some people joked on social media that they were nostalgic.
Meme coins are some of the wildest and most unregulated in the world of cryptocurrencies. It often starts out as a joke with no real value, but the price can skyrocket if enough people want to buy it. Popular meme coins include Dogecoin and Fartcoin, whose mascot is a dog. Scammers tried to inflate the price of certain meme coins and then dump them on uninformed investors.
Some crypto enthusiasts welcomed the release of the Trump Meme Coin, and eager buyers drove the price of the coin to more than $70 each. Prices fell dramatically on Sunday after first lady Melania Trump announced the launch of her meme coin, which also saw an initial price spike before falling significantly. As of Tuesday afternoon, Trump’s meme coin was trading at about $45, while Melania’s meme coin was trading at about $4.
President Trump on Tuesday appointed Mark Ueda as Acting SEC Director, and Ueda announced that he would immediately create a new Cryptocurrency Task Force to lead the SEC on a “smart regulatory path.” President Trump has promised to create a U.S. Bitcoin stockpile and enact industry-friendly rules that will make it easier for crypto companies to access broader financial markets.
But some crypto enthusiasts worry that Trump’s close association with meme coins is undermining his ability to enact reforms.
“Right now, as we’re starting to see some degree of liberalization of crypto regulation in this country, the main thing people are thinking about cryptocurrencies is, ‘Oh, this is just a casino for meme coins.’ said Trump supporter and partner Nick Carter. At virtual currency investment company Castle Island Ventures. “It goes against the grain of legitimizing us and makes us look completely disingenuous.”
The Trump Meme Coin sale was organized by CIC Digital, an affiliate of the Trump Organization. While promoting the meme coin, President Trump told his supporters, “Have fun!” The website selling the tokens says the tokens are intended as an expression of support and not as an investment opportunity. According to the coin’s website, 200 million Trump meme coins are currently available, with 1 billion planned to be issued over the next three years.
The Trump family’s businesses recently announced an ethics agreement that prohibits Trump from making “day-to-day” decisions at the Trump Organization while he is president and limits the financial information it shares about its businesses with Trump.
The president and first lady weren’t the only ones promoting new cryptocurrencies before and after the inauguration. Michigan pastor Lorenzo Sewell, who delivered a lively inaugural prayer Monday, announced the issuance of a new coin bearing his name, which he said will be used for the benefit of the church.
“I have a request for you right now: please go buy an official Lorenzo Sewell coin,” Sewell said in a video post on social media.
First published: January 22, 2025, 12:45 PM EST
