Worries Mount with Trump’s Family Meme Coins

Crypto industry leaders are voicing serious concerns over the turmoil caused by the launch of TRUMP and MELANIA, two controversial meme coins introduced by Donald Trump and his wife just days before his inauguration.

Nic Carter for instance, founding partner of Castle Island Ventures, reportedly said:

“Call me old-fashioned, but I think presidents should focus on running the country.”

Even staunch Trump supporters, such as Nic, have flagged potential conflicts of interest, noting that the former president’s influence over crypto regulations could directly benefit his financial interests.

Initially valued at a combined $17.5 billion, the tokens have since plummeted by over 50%, leaving thousands of investors facing significant losses and fuelling debates about ethics, conflicts of interest, and the broader impact on the industry’s credibility.

According to CoinMarketCap, the bulk of trading for the 200 million TRUMP tokens took place on relatively obscure Asian exchanges such as BiKing, Gate.io, and Megabit.

As of now, TRUMP is trading at $36.35, down 16.35% in the past 24 hours.

A Silicon Valley investor at the World Economic Forum in Davos compared Trump and Elon Musk to historical figures Crassus and Caesar, suggesting that the meme coins exemplify the age-old practice of leveraging political influence for personal gain:

“We are seeing real ‘End of Empire’ stuff in the US.”

Approximately 80% of TRUMP tokens are controlled by CIC Digital—an entity linked to the Trump Organisation—and Fight Fight Fight LLC, another Trump-affiliated company.

Both firms stand to profit substantially from trading revenues and token sales, with insider holdings set to unlock gradually over the next three to twelve months.

World Liberty Financial Brought Into Question

US Representative Gerald Connolly is urging swift action to examine Trump’s financial ties to the crypto industry, raising concerns about potential conflicts of interest and ethical violations.

In a formal letter, Connolly called on the House Oversight and Government Reform Committee to investigate Trump’s involvement in cryptocurrency ventures, arguing that such activities could compromise presidential transparency and integrity.

Connolly's request specifically highlights Trump’s role in launching World Liberty Financial (WLF), a crypto project positioned as a reflection of his vision for financial independence.

Reports indicate that Justin Sun, the founder of Tron and a controversial figure currently under investigation by the US SEC for alleged securities fraud, has invested heavily in WLF.

Sun’s $30 million contribution to the platform reportedly enabled it to hit key revenue targets, potentially channeling funds directly to Trump and his family.

He wrote:

“The expanding scope of President Trump—and by extension The Trump Organization’s—financial entanglements and quid pro quo promises are troubling.”

Connolly insists that the Oversight Committee must scrutinise these ventures under the Presidential Ethics Reform Act, emphasizing that while WLF’s tokens do not promise legitimate financial returns, they could serve as a vehicle for individuals and foreign entities to gain influence with the Trump family.

Ethical Issues Run Rampant

A recent report highlights growing concerns among lawmakers and industry leaders over the controversial $TRUMP token, with critics warning it could bypass national security and anti-corruption laws while exposing retail investors to significant risks.

Representative Maxine Waters, a member of the House Financial Services Committee, cautioned that the token’s anonymous nature could facilitate untraceable financial transactions within Trump’s inner circle:

“This meme coin represents the worst of crypto.”

Oskar Åslund, chief strategy officer at AKJ, echoed these concerns, emphasizing the lack of investor protections and pointing out that the token’s terms prohibit class-action lawsuits:

“His economic interest is for sale. There are no checks and balances here.”

Anthony Scaramucci, founder of SkyBridge Capital and former White House communications director, warned that $TRUMP could hinder ongoing efforts to establish regulatory clarity for the crypto industry.

He said during a Davos panel:

“I believe it hurts the industry.”

Meanwhile, Serge-Raymond Nzabandora of Yield Guild Games criticised the token for diverting valuable resources and attention, noting the irony in Trump’s actions potentially undermining the very regulatory framework championed by former SEC chair Gary Gensler:

“The immediate effect has been draining liquidity and attention away from legitimate projects working on real use cases that the industry desperately needs to prove to the world in 2025.”

Adding to the controversy, REX Financial and Osprey Funds have filed with the SEC to launch an exchange-traded fund (ETF) centered on $TRUMP, aiming to make the token more accessible to investors.

However, the proposal has faced pushback, with Bloomberg Intelligence ETF analyst James Seyffart questioning the rationale behind creating an ETF for a token tied to a sitting president and launched only days ago.

He said:

“These are the first filings we’ve seen for memecoin ETFs in the US.”

Adding:

“I’m not sure even a libertarian-minded and Republican-controlled SEC will want to approve these products.”

Despite the scepticism, interest in crypto ETFs continues to grow, with over 30 filings currently under review, including funds focused on Solana and XRP.

ProShares and CoinShares are among those looking to capitalise on potential regulatory shifts under new SEC leadership.

According to James:

“These filings are a gamble.”

In a recent Bloomberg interview, Ark Invest CEO Cathie Wood weighed in on the $TRUMP token, calling it a meme coin but not “completely worthless.”

She stated:

“It may symbolize a new stage of the cryptocurrency revolution and have certain practicality in the future.”

While Wood has refrained from investing, sticking to Bitcoin, Ethereum, and Solana, her endorsement carries weight as an early and influential believer in cryptocurrency.

Trump Clueless About Details Surrounding His Own Meme Coin

When questioned about the $TRUMP token at a recent conference, President Trump seemed uncertain about its specifics:

“I don’t know where it is. I don’t know much about it other than I launched it, other than it was very successful.”

Meanwhile, Waters strongly criticised the meme coin, calling it “the worst of crypto.”

Waters said in a January 20 statement:

“Through his meme coin, 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.”

She warned that the token’s accessibility allows anyone—including individuals sanctioned by the US—to trade and potentially profit from it, raising serious concerns about regulatory oversight and national security risks.