President-elect Donald Trump and his family launched a new cryptocurrency token called $Trump, which features an image of Trump inspired by the July assassination attempt in Butler, Pennsylvania.
The venture, disclosed just days before Trump’s second inauguration, sent the crypto market into a frenzy, but has also raised ethical concerns among experts and people who see it as an effort to profit from the upcoming office. to occupy again, as reported by the New York Times.
The $Trump token is being sold by CIC Digital LLCan affiliate of the Trump Organization, with the slogan “Join the Trump Community. This is history in the making!” According to the website that sells the tokens, CIC Digital and its affiliates own 80% of the token supply, which will be released gradually over the next three years.
Launch concerns
Ethics lawyers have condemned the move, with Adav Noti, executive director of Marketing Campaign Authorized Middle, saying: “It is literally cashing in on the presidency: creating a financial instrument for people to transfer money to the president’s family in connection with with his office. It is beyond unprecedented.”
Eric Trump, who helps manage the Trump Organization’s business operations, defended the company, saying: “I am extremely proud of what we continue to accomplish in crypto. $Trump is currently the most fashionable digital meme in the world. “This is just the beginning.”
However, some in the cryptocurrency industry have criticized the token, with Nick Tomaino, a crypto venture capitalist and former Coinbase executive, writing on social media: “Trump owns 80% and is scheduling the launch hours before the inauguration is predatory and many will probably be harmed.” for it.”
The general public has also raised doubts about the release, especially considering its timing. People accused Trump of using his future position as president for profit. “The blatant scam is disgusting,” one person said.
“Dropping the TRUMP memecoin 2 days before becoming president is a nasty job,” said a person identified as “Coffeezilla” on X.
An X user named “crypto King” said: How is this legal? How is this appropriate as a president? “I feel like this is a disgrace to Republicans, MAGA, and the presidency.”
The value of the $Trump token rose from $7 to nearly $30 within hours of its launch, suggesting a fully diluted value of $30 billion. The company’s website includes disclaimers that limit buyers’ ability to file class action lawsuits and warn about the volatility of cryptocurrency markets.
Trump has announced his intention to appoint regulators who will lift restrictions on the sale of new tokens and ties between cryptocurrency companies and other more traditional financial companies, in contrast to efforts by regulators under President Joe Biden to strictly regulate the industry.
