President-elect Donald Trump has launched two cryptocurrency meme coins, $MELANIA and $TRUMP, just days before taking office. The coins are trading on the Solana blockchain and have already seen significant price swings. While some in the crypto industry have expressed enthusiasm for Trump’s promise to be a crypto-friendly president, ethics experts and critics are raising concerns about potential conflicts of interest.
Melania Trump launched her own cryptocurrency, $MELANIA, on social media over the weekend, which led to a decline in the value of Trump’s coin, $TRUMP. However, the latter has since recovered some losses and is currently trading around $60. The launch of these meme coins comes at a time when Trump will have significant influence over how the federal government regulates cryptocurrency.
Ethics experts are warning that Trump’s personal involvement in launching these coins could lead to conflicts of interest, particularly given his promise to be more crypto-friendly. “It’s very dangerous to have the people who are supposed to oversee regulating financial instruments investing in them at the same time,” said Richard Painter, a law professor at the University of Minnesota.
The launch of these meme coins has also raised questions about the role of government ethics. While executive branch employees must follow conflict of interest laws, the president and vice president are not subject to the same rules. This could lead to concerns that Trump is using his position to enrich himself or his team.
The Trump Organization has announced that Trump will not be involved in managing his real estate and branding empire during his first term in office, but some critics argue that this is insufficient to address potential conflicts of interest. Anthony Scaramucci, a former Trump official turned critic, said that the “most dangerous thing” about the Trump coin is that anyone can now deposit money into the president’s bank account with just a few clicks.
The launch of these meme coins has also sparked debate in the crypto industry. Some have expressed support for Trump’s promise to be more crypto-friendly, while others are concerned about the timing and potential conflicts of interest. The value of these coins is highly volatile and subject to speculation, making it essential to carefully consider their implications before investing.
Source: https://edition.cnn.com/2025/01/20/tech/meme-coins-donald-melania-trump-intl-hnk/index.html