US President Donald Trump faced criticism for introducing a meme-coin despite admitting he "doesn't know much" about cryptocurrency.
The digital coin, named TRUMP, debuted on his social media accounts before his inauguration on Monday and rapidly emerged as one of the most valuable crypto coins, reaching $75 per coin within a day before dropping to $39.
However, the release of the so-called meme-coin — a cryptocurrency mainly associated with amusement or speculation — garnered extensive disapproval from industry insiders.
Regarding Trump's lack of knowledge about the coin, Danny Scott, CEO of CoinCorner, expressed, "Trump's comments about not knowing much about the coin back up my opinion that he is making a mockery of the industry. It's a stunt."
Criticism escalated after Trump remarked to reporters, "I don't know much about it other than I launched it, other than it was very successful." He downplayed its profitability, stating, "several billion - that's peanuts for these guys" during a press conference on AI technology.
Meme-coins are frequently utilized by speculators for financial gain or to demonstrate support for a celebrity or internet phenomenon.
This is not Trump's initial involvement in crypto merchandise, having previously earned millions from releasing NFTs portraying him in superhero poses in 2022.
Despite some industry experts viewing the president's meme coin as an inspiration for others, the general sentiment remains critical.
Many in the crypto community are anticipating solid commitments from Trump towards boosting the US cryptocurrency sector, particularly concerning Bitcoin.
TRUMP coin has become the 25th most valuable crypto coin, valued at around $8 billion, with Trump and his team possessing 80% of the coins, potentially making billions if they sell their shares.
Critics at K33 perceive this setup as antiquated for similar tokens, with analyst David Zimmerman describing the tokenomics as "horrendous for a meme-coin."
Nonetheless, K33 acknowledges that the remaining 80% of coins cannot flood the market, shielding investors from drastic price fluctuations.
While numerous cryptocurrencies exist and can be created by anyone, the launch of meme-coins during the presidential inauguration has raised concerns regarding market manipulation and potential conflicts of interest.