Experts Concerned About Conflicts of Interest as Melania Trump Unveils Meme Coin

Melania Trump has launched her own meme coin, mirroring her husband Donald Trump’s actions. This move has sparked discussions about potential conflicts of interest, especially as the incoming administration prepares to relax regulations surrounding digital assets.

Trump’s decision to unveil a digital token, $Trump, just before his inauguration raised concerns among ethics experts. The value of $Trump skyrocketed, tripling to over $70 shortly after its launch, giving it a market capitalization of more than $14 billion. However, Melania’s competing token, $Melania, soon diverted some investor attention, affecting $Trump’s gains.

Cryptos have rallied since Trump’s election win, reflecting his pro-deregulation stance. Bitcoin, the most recognized cryptocurrency, hit a new high of $109,240, climbing over 5%. Dogecoin, famously endorsed by Elon Musk, also increased by nearly 5%, while Ether rose 3.5% to reach $3,384.

President Trump celebrated his token’s launch on social media, urging his followers to join his “special Trump Community” and purchase $Trump. According to its official website, CIC Digital LLC, a Trump-owned firm, controls 80% of the coin’s supply. The launch created significant market movement, as traders sold other assets to invest in $Trump, propelling it into the top twenty cryptos.

Similarly, Melania’s announcement of $Melania caused shifts in the market. Investors began trading $Trump for her newly released coin. Following the launch of $Melania, $Trump’s value temporarily dropped by over 50% to $30 but later stabilized around $64. Meanwhile, $Melania’s market cap surged to approximately $13 billion.

Meme coins, including $Trump and $Melania, are digital currencies inspired by internet trends. They are prone to extreme price volatility and often lack intrinsic utility. Traders liken them to gambling or purchasing lottery tickets.

Despite their high nominal values, the actual monetary realization from selling these tokens could significantly impact their prices. However, these coins could generate substantial revenue for Trump-linked companies as restrictions on sales are lifted within the next year.

Melania’s meme coin is promoted by her company, MKT World LLC. The company plans to allow coin sales after a 30-day lock-up period. Supporters of the Trump coins view them as symbols of the administration’s commitment to a crypto-friendly environment, contrasting with the previous administration’s stance.

Still, the launches have raised ethical questions about potential personal profits tied to political influence. Trump previously generated millions through the sale of NFT trading cards during his campaign. His sons, Donald Jr. and Eric, also launched a crypto venture, WLF, in 2024, intensifying scrutiny over conflicts of interest.

Both the $Trump and $Melania websites emphasize that their tokens are meant as expressions of support and not as investment opportunities. They include disclaimers clarifying that the coins are unrelated to political campaigns or governmental entities.

The entire crypto industry, including leading firms like Riot Platforms (NASDAQ: RIOT), will be watching to see how the Trump family navigates the conflict of interest minefield that is brewing around them.

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