Ethics Experts Staggered by Trumps' Launch of Crypto Coins

Bitcoin hit a record high on Monday, but far greater attention now appears to be focused on new crypto coins launched by the US President-elect Donald Trump, and his family.

Trump’s meme coin, known as $TRUMP, soared on Monday to nearly $12 billion in market value – hours before his return to the White House.

Launched on Friday, the $Trump surged to $58.56 at 0820 GMT on Monday, giving it a market capitalisaton of about $11.7 billion, according to CoinMarketCap, which ranked it as the 18th biggest cryptocurrency. Its 24-hour trading volume reached $52.5 billion.

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An ad posted on X (formerly Twitter) for Donald Trump’s crypto coin $Trump, said to have shocked crypto enthusiasts.

Trump launched the digital token with branding including an image from his attempted assassination in July, expanding his cryptocurrency interests that already include World Liberty Financial.

Of the total number of tokens, 80% are owned by CIC Digital LLC, which is an affiliate of Trump’s business The Trump Organization, and another business called Fight Fight Fight LLC, the token’s website says.

Melania Trump launched her own cryptocurrency on Sunday, which was trading at around $12.03, with a market cap of $1.9 billion, at 0820 GMT, according to CoinMarketCap.

Bitcoin, meanwhile, hit at an all-time high of $109,071.86 in early European trading. The world’s largest cryptocurrency has surged more than 10% so far this month.

‘Explicit profiteering by an incoming president’

Even cryptocurrency community participants were surprised by the launch of Trump’s meme coin.

The New York Times said on Saturday ethics experts described the move “as a blatant effort to cash in on the office he is about to occupy again.”

It said the coins launched by Trump and his family were “immediately condemned by ethics lawyers who said they could not recall a more explicit profiteering effort by an incoming president.”

“It is literally cashing in on the presidency — creating a financial instrument so people can transfer money to the president’s family in connection with his office. It is beyond unprecedented,” it quoted Adav Noti, executive director of Campaign Legal Centre, a nonprofit ethics group, as saying.

Troy Miller, a writer with the Brave New Coin website, said the incoming president made a power play at the black-tie Crypto Ball on Friday that bordered on diabolical.

“During the height of this exclusive event, with crypto’s elite and Trump’s closest allies gathered under one roof, Trump pulled off a vicious move straight out of the Game of Thrones’ Red Wedding playbook. He launched $TRUMP, which skyrocketed to a staggering $15 billion valuation almost instantly, leaving the attendees blindsided.

“What was meant to be a celebration of unity and inclusion turned into a masterstroke of betrayal, as Trump flipped the script, unveiling the fastest-ever $15 billion memecoin — without letting anyone in the room know beforehand. It was a ruthless display of power, reminding everyone that the real game is his to command.”

‘A Pandora’s box of ethical questions’

Other commentators seemed less surprised or enthused.

“While it’s tempting to dismiss this as just another Trump spectacle, the launch of the official Trump token opens up a Pandora’s box of ethical and regulatory questions,” Justin D’Anethan, an independent crypto analyst based in Hong Kong, told Reuters.

While the coin represented a blending of the world of decentralised finance (DeFi) into the political arena, it also “blurs the lines between governance, profit, and influence,” D’Anethan said.

“Should public figures, especially those with such political clout, wield this kind of sway in speculative markets? That’s a question regulators are unlikely to ignore,” he said.

The Guardian noted that Trump’s meme coin website included a disclaimer stating: “Trump memes are intended to function as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$Trump’ and the associated artwork, and are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type.

“GetTrumpMemes.com is not political and has nothing to do with any political campaign or any political office or governmental agency.”

Melania Trump’s meme coin website had a similar disclaimer, it said.

Trump had promised to be a “crypto president”, and is expected to issue executive orders aimed at reducing crypto regulatory roadblocks and promoting widespread adoption of digital assets.

He is due to assume the presidency at noon ET (1700 GMT) on Monday.

The prospect of looser regulations around crypto policy has been met with fanfare by the industry and turbocharged a rally in bitcoin following Trump’s election victory in November.