Trump’s new meme sparks outrage in crypto world

US President Donald Trump has been criticized for launching a meme saying he “doesn't know anything” about cryptocurrencies.

The digital coin named Trump appeared on his social media accounts ahead of Monday's inauguration and quickly became one of the most valuable crypto coins. The value of one coin peaked at $75 during the day but fell to $39 as a result.

But the launch of the so-called Meme-Coin – a cryptocurrency with no utility other than entertainment or speculation – was widely criticized by industry insiders.

Concorner CEO Danny Scott said: “Trump doesn’t know my opinion about coins and I think he’s making a mockery of the industry. It’s a stunt.”

The latest drop in value came after Trump told reporters: “Other than launching it, other than the fact that it was very successful, I don't know much about it.”

When he was told that his coin had raised him billions of dollars, he shot down “billions of dollars – that's peanuts for these guys,” pointing to the tech billionaire's attendance at a press conference about AI.

Meme coins are often used by speculators to make money or allow fans to lend their support to celebrities or moments in internet culture.

This is not the first time Trump has sold crypto products. He made millions by launching a series of NFTs in various superhero poses from 2022.

Some industry analysts say the president having his own meme coin shows others should follow.

Jeff Dorman of investment firm Arca announced online: “The Trump Token has just sent a signal to every company, city, university and personal brand in Crypto that it can now be used as a capital formation and customer bootstrapping mechanism.”

However, the overall sentiment appears to be negative toward the president's meme coin.

Many in the cryptocurrency world are waiting for Trump’s endorsement of the campaign to hopefully help boost the industry in the United States. People like Danny Scott want to see focused government programs, especially around Bitcoin.

On Thursday, the president took the first step toward fulfilling those promises by signing an executive order establishing a working group to explore changes to cryptocurrency regulations and potentially create a national cryptocurrency inventory.

Last year, Trump promised Bitcoin fans that he would make the United States the “crypto capital of the earth.” Days into his term, the president has not issued an executive order involving cryptocurrencies, nor has he mentioned it in a speech.

According to the website CoinMarketCap, Trump Coin is now the 25th most valuable crypto token, worth approximately $8 billion.

Trump and the team behind him own 80% of the coin, so in theory if they sell their shares and the price stays the same, they will make billions.

Crypto researchers at K33 describe this setup as obsolete for similar tokens.

K33 analyst David Zimmerman said: “There's no sugarcoating this – these token people are terrible for memes.”

However, K33 analysts admitted that the remaining 80% of coins cannot be dumped on the open market, so investors are partially protected from the price shock.

There are thousands of cryptocurrency coins and anyone can create one.

First Lady Melania Trump launched her own meme on the eve of the inauguration, and the coin is worth $700 million since it dropped to $2.70 from $13.

However, many memes have resulted in huge losses for those who invested in them.

Dan Hughes from cryptocurrency firm Radix believes memes started by the president and his wife undermine positivity in the industry.

He said: “This pattern of celebrity-driven tokens launching, especially starting with political figures, may signal a trend in the cryptocurrency market where influence and liquidity manipulation may obscure fundamental value. 's creation.

Others in the cryptocurrency world believe that making money by launching memes is harmful.

“During the presidential inauguration, these coins introduce concerns about potential conflicts of interest and could undermine the dignity of the president and first lady,” said Grzegorz Drozdz, a market analyst at investment firm Conotoxia.