US President Donald Trump has faced criticism for introducing a meme-coin despite claiming he "doesn't know much" about cryptocurrency.
The digital coin named TRUMP appeared on his social media accounts prior to his inauguration on Monday, swiftly becoming one of the most valuable crypto coins. Initially reaching $75 per coin, its value has since dropped to $39.
However, the release of this so-called meme-coin, a cryptocurrency primarily used for entertainment or speculation, has garnered disapproval from industry experts.
"He is making a mockery of the industry by launching this coin," stated Danny Scott, CEO of CoinCorner.
After stating he had limited knowledge about the coin, Trump later downplayed its success, mentioning it had generated billions, considering it insignificant compared to tech billionaires. Meme-coins serve as a financial tool for speculators or a means for supporters to express loyalty to a celebrity or internet trend.
This isn't Trump's first involvement in crypto ventures; he previously profited from selling NFTs depicting him as a superhero in 2022.
Although some analysts view Trump's meme-coin as a signal for others to follow suit, the overall response towards the president's coin remains negative.
Many in the crypto community await Trump's fulfillment of pledges to bolster the industry in the US, especially concerning Bitcoin.
Despite Trump's promises to position the US as the leading "crypto capital," the lack of executive orders or public mentions about cryptocurrency during his term have raised skepticism within the industry.
With a value of approximately $8 billion, the TRUMP coin ranks 25th among cryptocurrencies, owned predominantly by Trump and his team. This ownership structure has drawn criticism from crypto researchers for its outdated tokenomics.
While critics argue that the proliferation of meme-coins by political figures like the Trumps erodes the industry's credibility, there are contrasting views on the potential implications.
The introduction of such coins during the presidential inauguration has sparked concerns about conflicts of interest and the perceived devaluation of the presidential and first lady's image, as stated by market analyst Grzegorz Drozdz from investment firm Conotoxia.