President Donald Trump’s goodwill in the cryptocurrency industry has taken a hit after he and his wife launched it meme coins – According to critics, it seems like an inappropriate income that undermines the effort to legitimize digital assets.
Industry, which felt unfairly targeted by the Biden administration spend a lot To help Trump win, he is eager for the new president’s support to make crypto a bigger part of mainstream financial systems. Trump has promised a lighter regulatory touch and has appointed crypto-friendly officials to top government posts.
The price of Bitcoin and other digital assets has soared since Trump won. Trump’s inauguration was preceded by a lavish “Crypto Ball” that sold tickets for thousands of dollars and featured a performance by rapper Snoop Dogg.
But with that party underway, Trump announced on social media that he was offering his own cryptocurrency in the form of a meme coin. The move dampened the mood of many in the crypto community.
“I was blown away when I saw it,” said Tom Schmidt, a partner at crypto venture capital firm Dragonfly. “It felt very honest and cheap.”
Some crypto-enthusiasts even joked on social media that they lost Gary Gensler, the chairman of the Securities and Exchange Commission who was seen as the main crypto antagonist of the Biden administration, thanks to the SEC’s aggressive enforcement against crypto companies.
Meme coins are among the wild and unregulated corners of the crypto universe. They often start as a joke with no real value, but the price can go up if enough people are willing to buy. Popular meme coins include Dogecoin, whose mascot is a dog, and Fartcoin. Fraudsters have tried to pump up the price of some meme coins before dumping them on unsuspecting investors.
Some crypto-enthusiasts applauded the release of the Trump meme coin and eager buyers pushed the price of the coin to over $70. The price dropped dramatically on Sunday after First Lady Melania Trump launched her own meme coin, which saw its initial price rise and fall sharply. As of Tuesday afternoon, the Trump meme coin was selling for about $45 and the Melania meme coin was about $4.
Trump named SEC Commissioner Mark Uyeda as acting head of the agency on Tuesday and Uyeda quickly announced that he would launch a new crypto task force to put the SEC on a “sensible regulatory path.” Trump has promised to create and enforce a US bitcoin repository industry friendly rules that make it easier for crypto companies to enter the broader financial market.
But by associating himself so closely with meme coins, some crypto enthusiasts worry that Trump is hurting his ability to enact reforms.
“Now, with the liberalization of crypto regulations in this country, the main thing people are thinking about crypto is, ‘Oh, it’s just a casino for these meme coins,'” said Nic Carter, a Trump supporter and partner at Castle Island. At the crypto investment firm Ventures. “It does the opposite of validating us, it makes it look completely unserious.”
The Trump meme coin sale was organized by CIC Digital, an affiliate of the Trump Organization. While promoting the meme coin, Trump told followers to “Have fun!” The website selling the tokens says they are meant as a statement of support and not as an investment opportunity. The coin’s website said 200 million Trump meme coins are available, with plans to issue 1 billion over the next three years.
The Trump family business recently fired him ethical agreement which prohibits him from making “day-to-day” decisions at the Trump Organization when he is president and limits financial information about the business shared with him.
The president and first lady weren’t the only ones promoting new cryptocurrencies around the inauguration. Lorenzo Sewell, the Michigan pastor who gave a lively opening address on Monday, announced the release of a new coin bearing his name, which he said would be used to benefit his church.
“I need you to do me a favor right now, I need you to go buy the official Lorenzo Sewell coin,” Sewell said in a video on social media.
