On the eve of her husband’s presidential inauguration, Melania Trump introduced her own cryptocurrency on Sunday, a move that follows the launch of Donald Trump’s digital coin the previous day. These developments have sparked ethical debates among observers within the cryptocurrency sphere.
“The Official Melania Meme has arrived! You can now acquire $MELANIA,” the soon-to-be former first lady announced on X.
Donald Trump’s meme coin, $TRUMP, which featured imagery related to his attempted assassination in July, was released on Saturday.
According to data from CoinMarketCap, the $TRUMP coin’s market capitalization surged to almost $11 billion USD on Monday morning. This surge could potentially boost Trump’s net worth by billions, though it later declined to $8 billion in the afternoon. $MELANIA, in comparison, had a market value of $1.7 billion just prior to the inauguration. Later dropping to $1 billion.
Information on the official website reveals that CIC Digital, a business connected to Trump, and another entity called Fight, Fight, Fight, collectively possess about 80% of the Trump coin’s tokens. The site clarifies that the coins “represent support for and engagement with the principles and beliefs associated with the ‘$TRUMP’ symbol” and should not be viewed as an investment or security.
The launch of these cryptocurrencies has generated both surprise and concern, even among those involved in the digital currency sector. Some critics have accused the Trumps of exploiting his presidential role once again to create a potentially profitable business from which he and his family stand to gain.
“While it might be tempting to dismiss this as simply another Trump spectacle, the introduction of the official Trump token unlocks a multitude of ethical and regulatory questions,” stated Justin D’Anethan, an independent cryptocurrency analyst based in Hong Kong.
He continued, “Should public figures, particularly those holding significant political influence, exert this level of control within speculative markets? This is a question that regulators are unlikely to disregard.”
Anthony Scaramucci, former White House communications director under Trump and now a frequent critic, also expressed strong disapproval on X.
“Now, anyone globally can essentially deposit funds into the President of the USA’s bank account with just a few clicks. Every favor—geopolitical, corporate, or personal—is now openly available for purchase,” he posted.
Front BurnerHow Trump is fueling a crypto boom
Once a crypto skeptic, U.S. President-elect Donald Trump has experienced a change of heart over the past year, especially after millions of dollars from the cryptocurrency industry flowed into his campaign. Now, as he embraces the online currency and even appoints a crypto czar, the price of Bitcoin and other popular tokens are reaching new heights. Even meme coins are seeing a boost.
But what happens if the volatile crypto market sees another crash like it did in 2022? Jacob Silverman, tech journalist and host of CBC’s The Naked Emperor, joins us to talk about why there’s so much crypto hype right now and what’s at stake if the boom goes bust.
For transcripts of Front Burner, please visit: https://www.cbc.ca/radio/frontburner/transcripts [https://www.cbc.ca/radio/frontburner/transcripts]
Trump’s Growing Support for Cryptocurrencies
Cryptocurrencies represent a form of digital currency that enables online transactions, while meme coins are a specific type of crypto, characterized by their volatility and driven by internet trends and humor.
Bitcoin, a widely used cryptocurrency, experienced a surge following Trump’s election victory. It again rallied to record levels leading up to his inauguration, increasing by over 10% within the month.
According to Barry Schwartz, Chief Investment Officer at Baskin Wealth Management in Toronto, the Trump coins “could potentially strengthen Bitcoin’s value because its supply is limited.” Bitcoin has a fixed maximum supply of 21 million units.
“It seems likely that Trump aims to establish some kind of Bitcoin strategic reserve, indicating that crypto is a part of his policy agenda. This could be a contributing factor to Bitcoin’s ongoing rise.”
The incoming president has openly supported cryptocurrencies, even suggesting a strategic Bitcoin reserve during his campaign. Many in the crypto community are hopeful that he will ease regulations impacting the developing industry.
Trump appointed David O. Sacks, a venture capitalist, as the country’s inaugural “crypto czar” and became the first presidential candidate to accept crypto donations for his campaign.
According to reports from Bloomberg, Trump is considering using an executive order to designate cryptocurrency as a “national priority” after his inauguration on Monday. He also enjoys significant backing from the industry, with crypto firms like Ripple, Robinhood, and Coinbase contributing to his inaugural fund.
However, the president-elect has not always been in favor of digital assets. He previously labeled Bitcoin a “scam” in 2021, claiming it was competing with and negatively impacting the strength of the U.S. dollar.