Trump and Melania's Meme Coins Draw Skepticism from Investors
President Donald Trump and First Lady Melania Trump's official meme coins have sparked skepticism among prominent investors.
Warning from Short Seller
Carson Block, founder of Muddy Waters Capital, advises against shorting meme tokens due to their speculative nature and lack of intrinsic value. He believes they serve as indicators of liquidity and speculative frenzy.
Market Performance
The Trump official meme token (TRUMP-OFFICIAL-USD) reached a high of $73 but currently trades around $27. The Melania meme coin (MELANIA-OFFICIAL-USD) peaked at $5 but has since dropped to $2.30.
Trump's Involvement
Trump has expressed limited knowledge of the tokens and stated that he has not monitored their performance.
Investor Criticism
* David Einhorn warns against the hype surrounding meme coins, referring to the "Fartcoin" stage of the market cycle.
* Anthony Scaramucci suggests that retail investors may experience losses due to volatile price swings.
Industry Backlash
Crypto advocates express concern that the meme tokens hinder the industry's pursuit of legitimacy and credibility.
Disclosure and Disclaimer
The official websites for both coins state that they are not investment opportunities or securities.