Trump’s Embrace of Sour Coin Vibes in the Crypto Industry

President Donald Trump’s goodwill in the cryptocurrency industry took a hit after he launched it with his wife. coins — a move that critics say looks like an unseemly cash grab that undermines efforts to legitimize digital assets.

The industry, which felt unfairly targeted by the Biden administration and spent a lot to help Trump win, is looking forward to the new president’s help in making crypto a bigger part of mainstream financial systems. Trump promised lighter regulation and chose pro-crypto officials for key government positions.

The price of bitcoin and other digital assets has soared since Trump’s victory. A lavish “Crypto Ball” Friday before Trump’s inauguration sold tickets for thousands of dollars and featured a performance by rapper Snoop Dogg.

But as that party continued, Trump announced on social media that he was offering his own cryptocurrency in the form of a coin. This move dampened the mood of many in the crypto community.

“I was definitely a little disappointed when I saw it,” said Tom Schmidt, a partner at crypto venture capital firm Dragonfly. “It was just very grimy and cheap.”

Some crypto fans even joked on social media that they missed Gary Gensler, the recently departed chairman of the Securities and Exchange Commission who was seen as the Biden administration’s main crypto antagonist thanks to the enforcement actions aggressive SEC action against crypto companies.

Meme coins are among the wildest and least regulated corners of the crypto universe. They often start as a joke with no real value, but their price can skyrocket if enough people are willing to buy them. Popular meme coins include Dogecoin, whose mascot is a dog, and Fartcoin. Scammers attempted to drive up the price of certain coins before selling them to unsuspecting investors.

Some crypto enthusiasts welcomed the release of the Trump meme coin and enthusiastic buyers drove the coin’s price to over $70 each. The price fell dramatically on Sunday after First Lady Melania Trump announced the launch of her own coin, which also saw an initial price rise followed by a sharp decline. As of Tuesday afternoon, Trump’s meme coin was trading at around $45, while Melania’s meme coin was at around $4.

Trump named SEC Commissioner Mark Uyeda as acting head of the agency on Tuesday, and Uyeda quickly announced he was launching a new crypto task force to put the SEC on a “reasonable regulatory path.” Trump promised to create a US bitcoin stockpile and enact industry friendly rules that make it easier for crypto companies to access the broader financial market.

But by associating himself so closely with meme coins, some crypto fans fear Trump could harm his ability to implement reforms.

“Now, about to get some liberalization of crypto regulations in this country, the main thing people think about crypto is, ‘Oh, it’s just a casino for these meme coins,’” ​​a said Trump supporter and partner Nic Carter. to crypto investment firm Castle Island Ventures. “It does the opposite of validating us, it makes it seem like it’s completely unserious.”

The Trump meme coin sale was organized by CIC Digital, a subsidiary of the Trump Organization. While promoting the meme piece, Trump told his supporters to “Have fun! » The website selling the tokens says they are intended as a show of support and not an investment opportunity. The coin’s website states that 200 million Trump coins are currently available, with plans to issue 1 billion over the next three years.

The Trump family business recently released a ethical agreement it prohibits Trump from making “day-to-day” decisions at the Trump Organization while he is president and limits financial information about companies shared with him.

The president and first lady weren’t the only ones promoting new cryptocurrencies at the inauguration. Lorenzo Sewell, the Michigan pastor who delivered a spirited inaugural invocation Monday, announced the launch of a new play bearing his name, which he said would be used to benefit his church.

“I need you to do me a favor right now, I need you to buy the official Lorenzo Sewell piece,” Sewell said in a video post on social media.