President Trump's Crypto Launch Raises Conflict-of-Interest Concerns
U.S. President Donald Trump's launch of a crypto token prior to his inauguration has sparked ethical concerns among experts. The token's ability to attract speculative investments and its potential to link Trump's presidency with its value are raising red flags.
The "meme coins" $TRUMP and $MELANIA, introduced by companies affiliated with the Trump Organization, are marketed as expressions of support rather than investments. However, ethics advisors and industry experts argue that this is different from previous Trump-branded ventures as his administration will regulate the industry in which he now holds a stake.
The companies behind the Trump token collectively own 80% of the tokens, raising concerns that Trump-linked businesses could have gained significant crypto value. Danielle Brian, head of Project On Government Oversight, emphasized the conflict of interest and potential national security implications given the industry's loose oversight.
Crypto investor Nic Carter pointed out the potential for secretive foreign buyers to influence leaders through such tokens. Democratic lawmakers echo these worries, highlighting the accessibility of unregulated platforms that allow even sanctioned individuals to trade in $TRUMP.
Meme coins are typically volatile and have limited value. However, the Trump tokens' websites avoid the term cryptocurrency, referring to them as "fungible crypto assets" and memes.
Finance professor Carol Alexander suggests that the Trump and Melania tokens may function as fan tokens, reflecting support for the couple. Despite Trump's absence of commentary, industry figures like Paul Howard of crypto market-maker Wincent see his involvement as a legitimizing force for the industry.