President-elect Donald Trump and his family have launched a new cryptocurrency token called $Trump, which features an image of Trump inspired by the July assassination attempt in Butler, Pennsylvania.
The venture, disclosed just days before Trump’s second inauguration, sent the crypto market into a frenzy but also raised ethical concerns among experts and people who see it as an effort to profit from the position that he’s about to occupy again, as the New York Times reports.
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The $Trump token is sold by CIC Digital LLCa subsidiary of the Trump Organization, with the slogan “Join the Trump Community.” This is history in the making! » According to the website selling the tokens, CIC Digital and its subsidiaries own 80% of the token supply, which will be released gradually over the next three years.
Concerns about the launch
Ethics lawyers condemned the move, with Adav Noti, executive director of the Campaign Legal Center, saying: “This literally amounts to cashing in on the presidency by creating a financial instrument for people to transfer money to the president’s family.” president in relation to his office. is beyond unprecedented.
Eric Trump, who helps run the Trump Organization’s business operations, defended the company, saying: “I am extremely proud of what we continue to accomplish in crypto. $Trump is currently the hottest digital meme in the world. This is just the beginning. »
However, some in the cryptocurrency industry have criticized the token, with Nick Tomaino, a cryptocurrency venture capitalist and former Coinbase executive, writing on social media: “Trump owns 80% of it and plans to launch within hours before the inauguration is predatory and many will likely be harmed. by this.”
The general public has also raised questions about the launch, especially given its timing. People accused Trump of using his future position as president for personal gain. “These blatant attacks are sickening,” one person said.
“Dropping TRUMP’s memecoin 2 days before he becomes president is a bad deal,” said a person identified as “Coffeezilla” on X.
User X called “crypto King” asked: How is this legal? How is this appropriate as president? I feel like it’s a shame for Republicans, for MAGA and for the presidency.”
The value of the $Trump token rose from $7 to nearly $30 within hours of its launch, suggesting a fully diluted value of $30 billion. The company’s website includes disclaimers limiting buyers’ ability to bring class action lawsuits and warning about the volatility of cryptocurrency markets.
Trump has announced plans to appoint regulators who would lift restrictions on the sale of new tokens and ties between cryptocurrency companies and other more traditional financial businesses, in contrast to efforts by President Joe-era regulators Biden to tightly regulate the sector.
