Trump wants to hurry crypto legislation, issues own memecoin

President makes good on crypto commitments on day-one of new Administration

Life

US President Donald Trump is making good on his commitment to cryptocurrency with the launch of his own memecoin: Official Trump.

At time of writing the coin is worth $53.5 billion, though it is nothing more than a souvenir for Trump fans. A single Official Trump was worth $73.43 at launch but its value slumped within hours, resting at $53.54 this morning – a decline of $26%. Only 20% of the digital coins are sold, while the rest will remain in Trump’s hands for three years.

Not to be outdone, First Lady Melania Trump launched her own memecoin, Melania, today with a valuation of $1.5 billion, each coin selling for just under $10. Ivanka and Barron Trump also launched memecoins with less success.

It might seem like fun but potential investors have been warned against buying in to the memcoin craze.

“This is a revival of the meme coin trend we saw in 2021 and 2022, where many young, inexperienced investors got burned by extreme volatility,” said Nigel Green, CEO of financial advisor de Vere Group. “Without doubt, investors will get burned by this frenzy too.

“Let’s be very clear: this is more gambling than investing. If you’re considering getting involved, you need to have a sound, diversified, long-term plan in place first.”

Green likened the phenomenon to gambling, explaining that many day traders are likely piling in with hopes of capitalising on fear of missing out. 

“They’re mostly not buying because they think the coin has inherent value,” he said. “They’re buying because they hope others will drive the price higher, allowing them to sell at a profit.”

Trump is due to sign several executive orders later this week, including the order to reform Securities & Exchange Commission (SEC) accounting rules, better known as SAB 121, making it easier for banks to hold third-party cryptocurrency.

Trump also wants to end Operation Choke Point 2.0, so named because bank regulators have often made things extra difficult for crypto companies.

Under The Biden Administrators, regulators cracked down on crypto companies, suing exchanges Coinbase, Binance, Kraken and dozens of others in federal courts.

It does not appear that Trump wants to immediately implement a strategic crypto reserve either, as Coinbase and others have promoted. There are too many risks associated with that.

Nevertheless, the crypto market is reacting positively to the news. Bitcoin’s share price has already risen well above $100,000.

Emerce

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