Meme coins, like, totally making bank for President Donald Trump’s fam biz, ya know? The Trump-branded digital tokens are all the rage, part of the Trump Organization’s big move into cryptocurrency. Managed by Mr. Trump’s sons, who he owns most of the company with, these coins are the real deal now, even though Mr. Trump used to diss cryptocurrency, but now he’s all about it, go figure.
Before Mr. Trump’s Jan. 20 inauguration, he started pushing two meme coins, $TRUMP and $MELANIA, to his loyal peeps. $TRUMP’s value shot up to $14 billion right out the gate, but now it’s sitting pretty at around $2 billion. The token got a boost recently when it was announced that the top 220 holders would get a dinner invite with the president at Trump National Golf Club in Virginia on May 22. The top 25 even get to attend a “Private VIP Reception” with Mr. Trump. Fancy, huh?
Critics, mainly Democrats, are throwing shade at the Trump fam for their crypto ventures, saying they’re just selling access to the prez and cashing in on the presidency. Sens. Jeff Merkley and Chuck Schumer even dropped some legislation on May 6 to stop the prez, veep, admin peeps, Congress members, and their fams from playing the crypto game.
Not really sure why this matters, but top investors in $TRUMP are gonna have dinner with the prez. Some peeps say it’s all good, no laws broken, while Dems are calling out the Trump fam’s crypto biz as “profoundly corrupt.”
Some non-American $TRUMP holders are trying to snag a dinner with the prez, raising concerns about foreign influence and how the guest list will be checked. The organizers, Fight Fight Fight LLC, say background checks are a must. Foreigners can’t donate to U.S. elections, so that’s a no-go.
In a sit-down with NBC News’ “Meet The Press,” Mr. Trump claimed he ain’t cashing in on his fam’s crypto biz. When asked if he’s making bank off his meme coin, he was all, “I haven’t even looked.” When pressed about Dems’ claims, he didn’t really address his fam’s role, but he did say the U.S. needs to “dominate” crypto to keep China in check.
Meme coins are basically digital tokens based on internet memes, not real money like Bitcoin. They’re marketed as collectibles, but also as risky investments. Their value can swing like crazy, even more than Bitcoin.
Dogecoin started as a meme coin that Elon Musk hyped up. Other coins feature cartoon characters or AI images. Millions of meme coins are made and traded each year.
How do meme coins rake in the dough? Coin issuers make money from sales and trading fees. Since they’re cheap to make, the profits can be huge. But lots of meme coins barely get traded at all.
Traders who got in early on $MELANIA made bank, scoring almost $100 million in profits, according to the Financial Times. Before Melania Trump announced the token on social media, a small group bought $2.6 million worth of coins. Most were sold within 12 hours.
$TRUMP was created by the Trump Org and a group in Wyoming called Celebration Cards LLC, but it’s unclear who owns it. The Trump entities have already made hundreds of millions from the token. They hold 80% of the 1 billion tokens, potentially worth billions. These tokens have a lockup period, so they can’t be sold right away.
Some ethical concerns with Mr. Trump’s coins? He already licenses books and sneakers that make bank for his political groups. Making money on the side as prez might seem sketchy, but no laws are being broken.
A private reception auction for the prez raises more ethical and legal red flags. The Constitution stops prez from taking foreign gifts. Mr. Trump was accused of this before, but the Supreme Court tossed the case after he left office. Even if all $TRUMP winners are Americans, the auction is giving access to the prez based on an asset from his fam’s company. Critics say it’s like “pay to play” corruption with untraceable digital cash.
Sen. Cynthia Lummis, a Trump and crypto supporter, is iffy about the auction. She thinks Congress should lay down the law on meme coins and digital assets. “This is the Wild West,” she told NBC News, “we need rules.”
The Trump fam also runs World Liberty Financial, a crypto company that launched last year with a currency called $WLFI. They just dropped a stablecoin, a digital currency tied to a regular one. An investment firm in the UAE scooped up $2 billion in the stablecoin to invest in a crypto firm that paid a $4 billion fine for breaking U.S. laws.
Dems aren’t happy about this. They wrote to the ethics office, warning that World Liberty Financial could be a front for foreign bribes. Eric Trump, pushing World Liberty Financial in the UAE, says he ain’t working with his dad. “No conflicts here,” he told Bloomberg TV.
Mr. Trump is in charge of agencies that regulate finance, including crypto. His peeps are way more chill about the industry than Biden’s crew. The SEC axed its crypto enforcement program and dropped lawsuits against big crypto players. The SEC chair, Paul Atkins, is pro-crypto and has ties to the industry.
The DOJ issued a rule that could help crypto. Prosecutors won’t go after digital currency crimes unless they’re tied to shady orgs, drug cartels, or terrorists.
Congress is hashing out rules for stablecoins, a win for the crypto world, which throws cash at politicians. The Senate Banking Committee greenlit the GENIUS Act, which sets rules for stablecoin issuers.
Calls are coming in to beef up the anti-corruption parts of the bill after the Trump fam’s stablecoin moves. Senators Merkley and Schumer’s legislation will get its own vote before the GENIUS Act. But it probs won’t go far without some Republican love.
And that’s the scoop on the Trump fam’s crypto hustle. Who knew meme coins could cause so much drama?
