In a stunning turn of events, former U.S. President Donald Trump’s foray into the world of cryptocurrencies has sparked a firestorm of criticism from an unlikely source: his own supporters within the crypto industry. The launch of the TRUMP coin, a memecoin unveiled on the eve of his 2025 inauguration, has drawn sharp rebukes over potential conflicts of interest, troubling token distribution, and the perceived undermining of the sector’s credibility.
A Tale of Two Tokens: TRUMP and MELANIA
The TRUMP coin burst onto the scene on January 17th, surging from $7 to a staggering $75 within a mere 24 hours before settling at $38. Hot on its heels came MELANIA, a token endorsed by First Lady Melania Trump, which struggled to gain traction, peaking briefly at $14 before plummeting below $4.
While the volatile trajectories of these tokens may have minted some overnight millionaires, they have also drawn the ire of industry insiders who fear the potential for conflicts of interest and the reinforcement of a get-rich-quick perception that could undermine the sector’s credibility.
Crypto Insiders Sound the Alarm
Leading the charge of critics is Anthony Scaramucci, a former White House communications director turned crypto advocate, who took to X (formerly Twitter) to voice his apprehensions:
The most perilous aspect of Trump coin for the nation is what follows. Now, anyone globally can effectively deposit money into the bank account of the President of the United States with just a few clicks. Every favor—be it geopolitical, corporate, or personal—is now openly for sale.
Anthony Scaramucci
Gabor Gurbacs, founder of digital asset firm Pointsville, echoed these sentiments, posting on X: “Trump needs to dismiss his crypto advisors, from top to bottom.” Even vocal Trump supporter Nic Carter, a general partner at a crypto investment firm, pulled no punches in his assessment, telling Politico: “It’s absolutely preposterous that he would do this. They’re plumbing new depths of idiocy with the memecoin launch.”
Distribution Concerns and Pump-and-Dump Fears
Beyond the potential for conflicts of interest, specific concerns have been raised about the token distribution of these coins. A staggering 80% of TRUMP tokens are concentrated in a small number of blockchain addresses controlled by CNC Digital, the firm behind the coin’s launch. Such concentration is a hallmark of potential “pump-and-dump” schemes, where insiders inflate a token’s value before selling off their holdings, leaving other investors holding the bag.
While there’s no evidence that Trump’s team plans to “dump” its tokens, and the distribution at least matches what was outlined on TRUMP’s official website, the same transparency does not apply to MELANIA. According to blockchain analytics firm Bubblemaps, a whopping 89% of MELANIA tokens are controlled by insiders, and the on-chain supply does not match the official distribution breakdown on the token’s website.
TRUMP could have been a statement from President Trump saying, ‘I endorse crypto.’ Melania launching her tokens feels like they just want to make as much money as they can on this, and then forget about it. It gives this a different flavor.
Nicolas Vaiman, CEO of Bubblemaps
A Pattern of Controversial Crypto Moves
This is not the first time the crypto community has questioned Trump’s forays into the industry. The August launch of World Liberty Financial (WLFI), a lending platform backed by the Trump family, drew similar backlash over token presales and the involvement of questionable characters on the project’s team.
The potential for conflicts of interest was again apparent when Tron blockchain founder Justin Sun, who previously faced fraud charges from the SEC, became WLFI’s largest investor with a $30 million token purchase. Days later, Donald Trump Jr. announced that WLFI would acquire some of Tron’s TRX tokens for its treasury, further muddying the waters.
The Fallout and the Future
As the dust settles on the launch of TRUMP and MELANIA, the crypto community is left grappling with the implications of the Trump family’s controversial entrance into the space. While some may have hoped that the former president’s endorsement would lend legitimacy to the industry, the reality has proven far more complex.
With concerns mounting over potential conflicts of interest, troubling token distribution, and the perceived undermining of the sector’s credibility, it remains to be seen how this saga will unfold. One thing, however, is certain: the Trump family’s contentious crypto foray has sparked a heated debate that is far from over.
