"Trump coin" causes controversy as it explodes in the cryptocurrency market.

Ethical experts and industry insiders say that US President Donald Trump recently launched a cryptocurrency shortly before his inauguration, sparking new concerns about conflicts of interest. Trump promised to hand over the management of his assets to his children, but because cryptocurrencies can quickly attract billions of dollars in speculative funds and have almost no transparency, this has raised particular concerns. The companies behind the "meme coin" "$TRUMP" and "$MELANIA" (named after First Lady Melania Trump) state that these tokens are not investments or securities, but rather "supported expressions." Prior to these tokens, Trump-branded non-fungible tokens, sneakers, and even a Bible have been introduced to the market. Ethical advisors and industry experts say this investment is different because the Trump administration will be regulating an industry in which he holds a stake through the new tokens, and any value of the tokens could be said to be closely related to his presidential position. The company behind the Trump tokens, a subsidiary of the Trump Organization called CIC Digital LLC and Fight Fight Fight LLC, collectively hold 80% of the tokens, meaning businesses related to Trump could have gained $8 billion worth of cryptocurrency over the weekend. Danielle Brian, head of the oversight organization Project On Government Oversight, says that considering the industry's lack of regulation, Trump's foray into the cryptocurrency sector is concerning. She adds, "Beyond the obvious economic conflicts of interest that come with representing the President...this deepens his entanglement with a world that poses genuine national security concerns." The Trump office did not respond to requests for comment. Renowned cryptocurrency investor Nick Carter said on social media that the creation of personal meme coins "opens the door to foreign buyers trying to influence our leaders in secrecy." Some US Democratic lawmakers also expressed concerns about national security issues and conflicts of interest. Maxine Waters, chief Democrat on the House Financial Services Committee, wrote, "Anyone around the world, including individuals sanctioned by the US or banned from our capital markets, can now trade Trump tokens on various unregulated platforms and profit from them." Meme coins typically refer to small, highly volatile cryptocurrencies named after internet jokes or trends. While supporters hope these tokens will rise in value as memes spread, most tokens hold little to no value. The two websites for the Trump tokens avoid using the term cryptocurrency and instead refer to them as "fungible crypto assets," marketing them as memes. Carol Alexander, a finance professor at the University of Sussex, says that the Trump and Melania tokens are more like fan tokens that became popular in 2021, possibly serving as a gauge of the couple's popularity. On Monday, the cryptocurrency market was active as investors anticipated Trump's cryptocurrency-friendly policies, leading Bitcoin to reach a historic high. Some say Trump tokens are changing the game. Paul Howard, a senior executive at cryptocurrency market maker Wincent, said, "The President's move is bringing a certain legitimacy to this field, and I believe that means the industry is evolving in ways never seen over the past 10 years."