US President Donald Trump has commented on his new meme token for the first time. What did he say?
On Saturday night, Donald Trump launched his own crypto asset. We are talking about the TRUMP coin, which turned out to be the fastest-growing meme token in the history of the market. At its peak, the meme’s market capitalisation reached the level of $14.5 billion, placing the cryptocurrency in the top 15 coins in terms of market capitalisation. And while the emergence of TRUMP has proven to be an unequivocal success, the politician himself isn’t exactly following what’s happening with the token.
What Trump said about his meme token
While speaking to reporters, Trump was asked about his digital asset, which was launched over the weekend. Here’s the US president’s response.
I don’t know a lot of details about it except that I launched it. I’ve heard it’s very successful. I haven’t verified that yet.
The journalist noted that the meme token has generated billions of dollars since its launch. He could have been referring to trading volumes with the TRUMP coin, its market capitalisation or revenue for Trump’s team, which owns 80 percent of the crypto asset’s total supply.
In response, the US president decided to guffaw.
A few billion? That’s crumbs for these guys.
Thus Donald Trump referred to SoftBank CEO Masaeshi Son, OpenAI CEO Sam Altman and Oracle executive chairman Larry Ellison, who were in the room with him. The Associated Press noted that at the meeting, Trump discussed the Stargate joint venture from giants OpenAI, Oracle and SoftBank, which plans to invest up to $500 billion in artificial intelligence infrastructure.
The organisation will set up data centres in Texas. This location is also popular among Bitcoin miners because of the electricity available.
Prospects of cryptocurrencies in the United States against the background of Trump’s activity commented the head of Two Prim Digital Assets Alexander Blum. According to him, the president’s personal interest in what is happening in the coin market will contribute to the development of the blockchain asset industry in America – although not exactly in the right direction.
US President Donald Trump
Here’s an expert’s rejoinder, as quoted by The Block.
The incredible success of this project will surely reinforce Trump’s interest in the industry as he benefits from it personally. On the other hand, for those who want to wait for the transformation of the global financial system through cryptocurrencies, this move brings us closer to a cryptocurrency casino rather than real reform.
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How Trump’s meme token could hurt the cryptocurrency industry
TD Cowen analysts have also voiced concerns over the TRUMP crypto asset situation. They believe that what is happening with the US President’s meme token could complicate bipartisan efforts to approve legislation on cryptocurrency market structure. Still, investigations into the coin’s implications are sure to heighten tensions between the parties.
Here’s a rejoinder from a unit of researchers at a Washington, D.C.-based company led by Jarett Seiberg.
Democrats will demand details on whether foreign governments and businesses used token purchases to build relationships with the Trump team. This jeopardises the ability to advance the cryptocurrency law with the bipartisan support needed to pass it.
The law will be crucial to resolving the current legal uncertainties that prevent many investors from getting involved with digital assets. Therefore, TD Cowen experts are concerned about the Trump team’s decision to launch a relevant asset.
That is to say, in the future, the Democrats may look into the activity of TRUMP buyers, rate changes and the financial benefit in all this for the Trump family. At the same time, Republicans will predictably defend the new president.
We also do not expect the Trump family or the Trump administration to cooperate for any investigations initiated by Democrats.
In general, Democrats have already criticised the US President’s initiative. For example, Representative Maxine Waters of California, who is known to the crypto community for her archival photo with former FTX exchange chief Sam Bankman-Fried, expressed concern over the lack of transparency in the number of TRUMP buyers.
Photo of former FTX executive Sam Bankman-Fried (second from left) and Congresswoman Maxine Waters (third from left)
She said meme tokens “represent the worst of the cryptocurrency world and at the same time show why many regulators, supporters and politicians have long been concerned about what is happening.”
With his meme cryptocurrency, Trump has created a way to circumvent national security and anti-corruption laws by allowing interested parties to anonymously transfer money to him and his inner circle. Among the buyers could be large corporations and allied nations forced to show their “respect” for the president, as well as our adversaries in the form of Russia and China, who stand to benefit greatly from influencing Trump’s presidency.
This kind of theory sounds like an age old Democrat who doesn’t know much about crypto. Still, Trump’s team owns 80 per cent of all TRUMP coins, which will also be released in the future. Purchases of cryptocurrency by users from all over the world are able to lead to the growth of the asset’s rate, which will affect the overall earnings of the developers. However, the speech about direct transfers of funds to Trump and his colleagues is not even close, because such a thing would definitely be of interest to intelligence agencies and financial regulators.
The launch of Trump's meme token may indeed create certain problems for him in the future. However, it is probably not worth worrying about the emergence of an adequate regulatory framework for the cryptocurrency industry in the United States. Still, the launch of the SEC's crypto working group clearly shows the priorities of the new government.
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