Critics believe this is a problematic gamble for the incoming president.
Source: bitcoinist
Translation: Blockchain Knight
On the eve of officially becoming the 47th president of the United States, Trump stirred new waves in the crypto asset space. He launched a controversial memecoin named after himself.
The memecoin, called TRUMP, launched on January 17, has sparked extensive discussion and is currently facing backlash from critics who argue that this is a problematic gamble for the incoming president.
As everyone anticipates Trump's takeover of the White House, the elected president of the United States surprised the crypto asset community by launching his own memecoin on the Solana blockchain.
This move has triggered a storm of criticism, questioning the ethics of a U.S. president launching his own memecoin.
Popular YouTuber Stephen Findeisen believes that it is inappropriate to launch a memecoin just days before Trump is set to appoint a new chair of the U.S. Securities and Exchange Commission (SEC). Some of the comments include:
"Launching a memecoin two days before Trump takes office is inappropriate."
"The new SEC/DOJ guarantees there will be no prosecutions."
"80% of the tokens will belong to insiders during the presidential term."
"Most of the people losing money will be MAGA supporters, who are not natives of crypto assets."
Other critics question Trump's new venture, arguing that it blurs the lines between government and business in some way.
Even Trump's former aide Anthony Scaramucci criticized the new memecoin, calling it a form of "corruption," and believes that the Trump memecoin could have adverse effects on the broader digital asset market.
Adav Noti, executive director of the Campaign Legal Center, accused Trump of using the presidency for personal gain, stating that the "Trump memecoin" could be seen as a profit-seeking endeavor.
Reports indicate that about 80% of the tokens will be allocated to individuals within the incoming president's circle.
Noti pointed out: "This is simply using the presidency to cash out, creating a financial instrument that allows people to transfer money to the president's family related to the presidency. This is unprecedented."
Some individuals in the crypto asset industry are also skeptical about this new memecoin, viewing it as a "dirty" tactic.
Former Coinbase executive Nick Tomaino stated in a post: "Trump owning 80% of the shares and launching it just hours before the inauguration is predatory, and many people could be harmed as a result."
Analysts noted that Trump's new token reached a market cap of $400 million in just 15 minutes, and that the memecoin also pushed Solana's native token SOL to a historic high of $267.
Moreover, the deployment of the new Trump memecoin website is almost identical to his previous NFT website.
The same Cloudflare settings, the same Heroku deployment, the same SSL certificate issuer. The HTML structure is very similar to the previous one.
Market observers reported that the value of the memecoin nearly reached $35 before stabilizing around $29, adding that some crypto asset traders recorded profits.
Reports indicate that one investor made between $50,000 and $1.1 million within a few hours.
However, considering that only 20% of the 1 billion TRUMP tokens are in circulation, it is still too early to judge the future trajectory of this token. The remaining 80% of the tokens will be issued over the next three years.
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