Key Takeaways:
- The price of $TRUMP memecoin surged after U.S. President Donald Trump called it the “Greatest” in a Truth Social post. The Solana meme coin rose by 11% to a 24-hour peak of $12.25 before retreating.
- The $TRUMP coin was launched ahead of Trump’s inauguration in January and experienced tremendous growth through his endorsement. The token recorded an ATH of $73.5 and a market cap of $12 billion, becoming one of the most successful crypto launches of all time.
- The President’s promotion of the meme coin, in which his company has an 80% stake, has resulted in a massive controversy, with experts criticizing the billionaire for using public office for personal financial gain.
- Last week, Trump addressed the Blockworks Digital Asset Summit conference in New York via video where he vowed to make America the global crypto capital and a Bitcoin superpower. He has called on Congress to pass pro-crypto legislation to advance growth in the industry.
Late Sunday, U.S. President Donald Trump directly endorsed his memecoin, Official Trump ($TRUMP), in a Truth Social post. As a result, the Solana-based cryptocurrency, in which the President’s affiliated company has an 80% ownership stake, experienced a surge in trading volume, with its price rocketing before retreating in the hours following the post.
$TRUMP Coin Gains $100 Million Following Trump’s Truth Social Media Post
Trump called the token “The Greatest of them all” in the post, which coincided with an 11% price surge that saw $TRUMP go from $10.91 to briefly top at $12.25 before experiencing significant volatility. While the memecoin gained around $100 million in market capitalization over the past 24 hours, it remains 84% below its all-time high of $73.3 during its launch in early January, ahead of Trump’s inauguration as the 47th U.S. President.
According to data provided by the GeckoTerminal, his post sent trading volumes for the token spiking to their highest levels since early March as traders rushed to capitalize on the President’s promotion.
The launch of $TRUMP, alongside the less-successful debut of the $MELANIA meme coin, styled after Trump’s wife, divided opinions with the crypto community criticizing the President for “shilling” his supporters for financial gain while his political opponents introduced a bill aiming to block public servants and their families from issuing or sponsoring securities and cryptocurrencies.
President’s Promotion of Personal Crypto Projects Stems Controversy
While the Trump meme coin’s official website states that it is not intended to be an investment opportunity, its value proposition appears to be integrated with the President’s personal brand and ongoing promotion through his social media posts. This unprecedented development of a sitting U.S. President directly promoting a cryptocurrency that benefits a business his family is personally invested in has drawn scrutiny from ethics watchdogs and industry observers.
Speaking to crypto news outlet Decrypt, Andrew Rossow, a digital media attorney, and CEO of global brand impact consulting firm AR Media, said that Trump’s actions have set a dangerous precedent for leveraging public office for personal financial gain.
He cited three high constitutional risks of these activities, with the first – the Emoluments Clauses (Article 1, Sec. 9) – prohibiting a sitting president from receiving financial benefits from domestic entities or foreign governments without congressional approval. He noted that the meme coin’s ownership structure allows “foreign actors” to purchase it anonymously, potentially violating the Emolument Clauses by enabling indirect financial gains or “undue foreign influence” over U.S. policy.
Rossow further cited the Separation of Powers (Article II, Sec. 3), which requires the President to “faithfully execute laws”. He said that Trump’s endorsement of the Official Trump token, a financial product with ties to his personal wealth, undermined regulatory agencies such as the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC), thereby eroding trust in impartial governance.
Moreover, he argued that under the provisions for the Equal Protection and Due Process in the Fifth Amendment, the President’s preferential treatment for his meme coin over other digital assets risks creating an uneven playing field in the crypto market, disadvantaging competitors.
According to the project’s official documentation, CIC Digital LLC and Fight Fight Fight LLC, subsidiaries of the Trump Organization, collectively control 80% of the $TRUMP coin’s total supply. These companies stand to benefit financially from increased trading activity and price appreciation.
World Liberty Financial, DeFi Project Tied To Trump Raises $550 Million Through $WLFI Token Sales
Last Monday, World Liberty Financial, a decentralized finance (DeFi) company associated with the Trump family, announced that it had completed its second round of sales for the platform’s native governance token, WLFI. The company’s accounting reported that it raised $550 million through the two token sale rounds.
While Trump is not an active member of World Liberty Financial, he is entitled to the project’s revenues as a promoter. According to its “Gold Paper”, Trump and his business partners at DT Marks DEFI LLC are set to receive 75% of net revenues earned by the project, including through WLFI tokens, minus the operating expenses. Trump and his associates will receive $390 million as payment for promoting the project and allowing it to use his brand.
When the Ethereum-based DeFi platform first launched token sales in October, it struggled to attract investors. According to Dune Analytics, on the eve of the 2024 election on November 5, World Liberty Financial had sold less than $15 million worth of WLFI tokens, which was a fraction of the project’s goal of raising $300 million in sales.
However, Trump’s victory resulted in the project enjoying a sharp spike in interest, with Tron blockchain founder Justin Sun announcing the purchase of millions of dollars worth of WLFI, shortly before joining as an advisor.
Meanwhile, the President has vowed to make America the “undisputed Bitcoin superpower and crypto capital of the world”. His remarks during a video appearance made at the Blockworks Digital Asset Summit conference in New York on Thursday. The 3-minute long statement marked the first time ever that a sitting president addressed a crypto conference.
During his statement, Trump reiterated that he’s called on Congress to pass his administration’s “landmark legislation” to create simple, common-sense rules for stablecoins. He also said that both small and large-scale institutions will be “liberated” to innovate and participate in “one of the most exciting technological revolutions in modern history.”
A Senate subcommittee voted to pass the Genius Act, which would create provisions addressing reserve requirements, transparency, and licensing for stablecoin issuers in the country. The proposed legislation to regulate dollar-backed cryptocurrencies has received strong bipartisan support and is expected to receive a full vote on the Senate floor by the end of April.
Earlier this month, Trump signed a historic executive order establishing the Strategic Bitcoin Reserve and Digital Asset Stockpile. The EO directs capitalizing the crypto assets in the custody of various federal agencies as part of criminal investigations for the reserve and requested the Commerce and Treasury departments to draw up plans to purchase additional Bitcoin (BTC) without any incremental costs on the taxpayer.
At the time of writing, Official Trump ($TRUMP) is trading at $11.89 – up 9% over the past 24 hours.