Trump Memecoins Ignite Fear Of Investor Fallout In Crypto Circles

Source Bitcoinist

Trump-themed meme coins might have excited some investors with its emergence but several executives of crypto firms think otherwise, worrying that the Trump tokens could do more harm than good to the industry.

Cryptocurrency executives fear that the $TRUMP and $MELANIA tokens could create a backlash from traders and damage the reputation of the whole cryptocurrency sector.

Questioning The Launching Of The Coins

The introduction of the meme coins did not sit well with some cryptocurrency executives who believed that tokens could be a conflict of interest after Donald Trump assumed the US presidency on January 20.

Crypto venture capital firm Castle Island Ventures founding partner Nic Carter said that he disagrees with the president venturing into the crypto space while running the country.

“Call me old-fashioned but I think presidents should focus on running the country and not launching scam tokens,” Carter said.

According to Gabor Gurbacs, the founder of PointsVille and former head of digital asset strategy at investment firm VanEck, the meme coins “cost the US, the presidency and his family a lot of credibility.”

Trump, Melania-Based Tokens

Days before the inauguration of the 47th US President, Trump made an unprecedented move of introducing the meme coins $TRUMP and $MELANIA, which both became an overnight hit among crypto investors.

Data showed that the meme coins reached a staggering $14,5 billion over the weekend while the Melania-themed token made about $3 billion.

“The Trump Memes are intended to function as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$TRUMP’,” the website of the Trump-theme tokens stated.

However, many stakeholders of the crypto industry worry that the Trump-based tokens could tarnish the reputation of the meme coin sector, a segment of the crypto space that is trying to regain investors’ trust after incidents of fraud and collapse.

Concerns On Memecoins

According to a CNN news report, the decentralized nature of the blockchain has made it easy for developers to launch a new token, “run up the price and walk away with impunity.”

Data showed that new memecoins being developed every day usually range from 40,000 to 50,000 with a total market value of about $100 billion.

People acquire meme coins for novelty, which has the same risk as if individuals would play a casino slot machine.

Crypto firm Department of XYZ general partner Matthew Homer blamed the fraud risks in the crypto space on the lack of regulatory clarity about digital assets, an issue Trump pledged to address during his administration.

Featured image from WIRED, chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Dogecoin Crash Signal Flashes: Analyst Warns Of A Potential 40% DropDogecoin (DOGE) holders have been put on alert by crypto analyst Ali Martinez (@ali_charts), who shared a chart on Monday highlighting a noteworthy technical setup. According to Martinez, the Market
Author  NewsBTC
21 hours ago
Dogecoin (DOGE) holders have been put on alert by crypto analyst Ali Martinez (@ali_charts), who shared a chart on Monday highlighting a noteworthy technical setup. According to Martinez, the Market
placeholder
Bitcoin Faces Persistent Resistance at $100K, Analyst Eyes Next StepWeeks after hitting an all-time high above $109,000, Bitcoin’s price remains under pressure. It is currently trading below the $100,000 mark, an 11.4% decrease from its peak. The crypto asset’s
Author  NewsBTC
5 hours ago
Weeks after hitting an all-time high above $109,000, Bitcoin’s price remains under pressure. It is currently trading below the $100,000 mark, an 11.4% decrease from its peak. The crypto asset’s
placeholder
Amazon, Microsoft, Alphabet, and Meta Just Gave Nvidia Great News. But Does That Make The Stock A Buy Before Feb. 26?The stock market appears to be in the middle of quite the storm as of late. In the final days of January, a Chinese start-up called DeepSeek sent shock waves around the world after
Author  The Motley Fool
5 hours ago
The stock market appears to be in the middle of quite the storm as of late. In the final days of January, a Chinese start-up called DeepSeek sent shock waves around the world after
placeholder
XRP slides below $2.72 as Elon Musk's DOGE shift focus to SECRipple's XRP saw a 4% decline in the early Asian session on Tuesday following an announcement that the Department of Government Efficiency (DOGE) is targeting the Securities and Exchange Commission (SEC) as the next agency to face its examination process.
Author  FXStreet
3 hours ago
Ripple's XRP saw a 4% decline in the early Asian session on Tuesday following an announcement that the Department of Government Efficiency (DOGE) is targeting the Securities and Exchange Commission (SEC) as the next agency to face its examination process.
placeholder
XRP Price Pump To $3.35 On The Horizon With Bullish Cup And Handle Pattern FormationThe XRP price is getting ready for a significant pump, as a new Cup and Handle pattern has just formed on its chart. A crypto analyst who identified the pattern has released an analysis, predicting that XRP could rise to $3.35, marking a new local high for the cryptocurrency. Cup And Handle Pattern To Trigger […]
Author  Bitcoinist
3 hours ago
The XRP price is getting ready for a significant pump, as a new Cup and Handle pattern has just formed on its chart. A crypto analyst who identified the pattern has released an analysis, predicting that XRP could rise to $3.35, marking a new local high for the cryptocurrency. Cup And Handle Pattern To Trigger […]
goTop
quote