Buyer's remorse? Maybe? Crypto Executives Fear Investor Backlash Over Trump Memecoins.
$TRUMP was launched by the president on Friday evening in the US and was followed on Sunday by $MELANIA. The total nominal value of both tokens initially surged over the weekend, with the president’s reaching $14.5bn and Melania’s hitting nearly $3bn.
“Call me old fashioned but I think presidents should focus on running the country,” said Nic Carter, founding partner at crypto venture capital firm Castle Island Ventures and a Trump supporter.
“Not to mention the obvious [conflict of interest] given the fact that Trump can set crypto policy,” he added. (...)
Memecoins have no cash flow, business model or practical use underpinning their valuations. Their value is derived from their popularity, which is often as fleeting as the memes they represent. (...)
The Trumps’ coin launches come after the president lent his enthusiastic support for crypto during his election campaign. He promised a more industry-friendly regime for companies, after executives faced a regulatory crackdown under the Biden administration. (...)
“This meme coin represents the worst of crypto,” said Maxine Waters, Democrat congresswoman and member of the US House Financial Services Committee. “Trump has created a way to circumvent national security and anti-corruption laws, allowing interested parties to anonymously transfer money to him and his inner circle.”
“His economic interest is for sale,” said Oskar Åslund, chief strategy officer at AKJ, a crypto hedge fund brokerage. “There are no checks and balances here.” (...)
The world’s most popular memecoins are tokens that refer to viral internet moments and characters — such as Dogecoin, representing a Shibu Inu dog; Pepe, representing a comic green frog; and Fartcoin. (...)
Following Trump’s lead, Lorenzo Sewell, a Detroit pastor who spoke during the president’s inauguration, announced the launch of his own memecoin later that day.
“I need you to do me a favour and go and get that coin in order for us to accomplish the vision that God has called us to do on earth,” he said in a video online. (...) [ed. hallelujah!]
In an apparent attempt to stave off potential lawsuits, terms listed on the Trump memecoin website state that users “agree that you will not bring, join or participate in any class action lawsuit as to any claim, dispute or controversy that you may have”.
by Nikou Asgari/Arjun Neil Alim/Stephen Morris, Financial Times | Read more:
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[ed. Lol. Priorities! I wasn't familiar with memecoins until today but got a good laugh anyway. I suspect the gullible will get hit over and over again until the well runs dry (if ever). Credit where credit is due though, they really hit the ground running. See also: Crypto Thought Trump Would Bring It Legitimacy. Then He Launched a Meme Coin. (Wall Street Journal):]
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Meme coins are still the wild west of crypto, operating largely without regulation. Even the most ardent Trump supporters reached a breaking point when the $MELANIA token launched less than 48 hours after the rollout of her husband’s coin. (...)
After the stunning collapse of the FTX exchange in 2022, the crypto industry made big inroads in rebuilding its brand and reputation. It emerged as one of the biggest spenders of the election cycle by donating $170 million to a trio of super PACs to elect friendly lawmakers.
After the stunning collapse of the FTX exchange in 2022, the crypto industry made big inroads in rebuilding its brand and reputation. It emerged as one of the biggest spenders of the election cycle by donating $170 million to a trio of super PACs to elect friendly lawmakers.
Some crypto enthusiasts questioned if the coins were a scam and if Trump’s accounts had been hacked. The mechanisms on the token reminded some of a rug pull, crypto parlance for a project that is launched and quickly abandoned, leaving investors with steep losses. (...)
The backlash over the Trump meme coins reached beyond the crypto industry. Michael Gayed, a portfolio manager and market analyst who publishes the Lead-Lag Report, posted criticism of the coin on X that drew support within the crypto community.
The backlash over the Trump meme coins reached beyond the crypto industry. Michael Gayed, a portfolio manager and market analyst who publishes the Lead-Lag Report, posted criticism of the coin on X that drew support within the crypto community.
“There’s a general level of disgust,” said Gayed. “I do believe this puts into question some of Trump’s credibility when we have a president-elect enrich himself just before inauguration and make a mockery of an entire ecosystem.” [ed. Oh man, too much.. emphasis added for additional hilarity value!]
