Just days before Donald Trump was sworn in as the 47th President of the United States, he and his wife, Melania Trump, launched their own cryptocurrencies, setting off a wave of ethical concerns among analysts and critics.
Donald Trump introduced his cryptocurrency, $TRUMP, on Saturday, followed by Melania Trump’s launch of $MELANIA on Sunday. Both coins quickly gained traction, with $TRUMP reaching a market value of $11 billion on Monday morning before settling at $8 billion. Meanwhile, $MELANIA peaked at $1.7 billion but later dropped to $1 billion.
The coins are described on their respective websites as symbols of support for the Trumps’ ideals, disclaiming any association with investments or securities.
Critics and crypto analysts are raising alarm bells about the ethical implications of a sitting U.S. president profiting from speculative financial markets.
“Should public figures, especially those with such political clout, wield this kind of sway in speculative markets? That’s a question regulators are unlikely to ignore,” said Justin D’Anethan, an independent crypto analyst.
Former White House communications director Anthony Scaramucci took to social media to voice his criticism:
“Now anyone in the world can essentially deposit money into the bank account of the President of the USA with a couple of clicks. Every favor—geopolitical, corporate, or personal—is now on sale, right out in the open,” he wrote.
Once a vocal skeptic of cryptocurrencies, calling Bitcoin a “scam” in 2021, Trump has since embraced the digital asset space. During his campaign, he signaled plans to establish a strategic bitcoin reserve and roll back crypto regulations, earning strong support from industry leaders and companies like Ripple and Coinbase, which contributed to his inaugural fund.
Barry Schwartz, chief investment officer at Baskin Wealth Management in Toronto, noted that the Trump coins could bolster Bitcoin’s value:
“It’s certain that Trump wants to start some kind of bitcoin strategic reserve. That, along with crypto being a key part of his agenda, explains why Bitcoin is climbing.”
Bitcoin surged to a record high following Trump’s election victory and ahead of his inauguration, with prices jumping over 10% in January alone. Observers attribute the rally to Trump’s pro-crypto stance and speculation that he will declare cryptocurrency a “national priority” via executive order.
Trump’s appointment of venture capitalist David O. Sacks as the country’s first “crypto czar” further signals his administration’s intent to integrate digital assets into the national economic agenda.
While the launches of $TRUMP and $MELANIA have generated significant buzz, they have also reignited debates about presidential profiteering and the ethical boundaries of leveraging public office for financial gain.
As Trump’s presidency begins, his ties to the burgeoning crypto market are likely to face intense scrutiny, both from regulators and the public.