Washington (AFP) – Cryptocurrencies launched by Donald and Melania Trump have angered some digital currency advocates and sparked fresh allegations of leveraging the presidency for profit. The new electronic Trump currencies are “meme coins,” digital tokens designed to capitalize on the craze surrounding a personality or viral phenomenon. Such cryptocurrency has no economic or transactional utility and is considered a purely speculative asset, with buyers essentially betting on its worth.
Melania Trump launched an $Melania coin the night before her husband was inaugurated as US president on Monday. Donald Trump launched an $Donald coin a day earlier. The value of the coins has swung heavily since their launch, with the $Trump cryptocurrency valued at about $40 each, giving the total in circulation an overall value of about $9 billion. Some 200 million of these “tokens” have been dispensed, and there are plans to create 800 million more, all minted by Trump and his associates, with a potential windfall worth billions of dollars.
“This memecoin represents the worst of crypto,” said Maxine Waters, Democratic 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.” Websites for both coins carry disclaimers stating they are not investment opportunities or securities. Critics within the crypto industry say the Trumps’ schemes damage the sector’s reputation as it rebuilds after recent scandals and bankruptcies.
“Trump coin is stupid and embarrassing,” crypto entrepreneur Erik Voorhees wrote on X. “Some in the crypto world are reacting with horror,” said crypto skeptic Molly White. “While they hoped Trump’s administration would be crypto-friendly, they didn’t anticipate the Trump family would embrace some of the ecosystem’s worst aspects to enrich themselves.” Kevin Boon, president of Mysten Labs, warned that politically-linked meme coins “are dangerous because they cause polarization; people can lose a lot of money.”
However, some industry figures defend celebrity meme coins as harmless entertainment. The buzz “underlines the playful and experimental nature of the crypto universe,” said Mike Cahill, chief of blockchain firm Douro Labs. “We as an industry shouldn’t take ourselves too seriously,” Cahill said. “While some may see this as trivializing the industry, meme coins have become a gateway for broader awareness of digital assets.”
© 2024 AFP
