United States President Donald Trump’s controversial cryptocurrency ($TRUMP) that has been dubbed as a memecoin experienced a dramatic price surge following his announcement of exclusive events for its largest investors, highlighting the growing intersection of politics and digital assets in his administration.
The $TRUMP memecoin, which launched shortly before the president’s January 20th inauguration, saw its value skyrocket by over 70% after announcing two high-profile events exclusively for its top holders.
According to the official $Trump website, the 220 largest investors will receive what it describes as “the most EXCLUSIVE INVITATION in the world” – a private gala dinner with President Trump scheduled for May 22nd at Trump National Golf Club in Washington DC.
Adding to the allure, the top 25 coin holders will be granted access to “an ultra-exclusive private VIP reception with the President,” creating a tiered system of access based on cryptocurrency investment levels. This unprecedented offering marks the first time a sitting US president has directly tied personal access to cryptocurrency holdings.
Despite the recent price surge, the token remains well below its January peak of approximately $74. Currently, the total market value of all circulating $Trump tokens stands at around $2.5 billion, cementing its position as the 25th most valuable cryptocurrency according to CoinMarketCap.
Criticism And Ethical Concerns
The president’s involvement with the cryptocurrency has drawn sharp criticism from industry experts and ethics watchdogs alike. Danny Scott, CEO of CoinCorner, characterized the initiative as “a stunt,” questioning the president’s understanding of the technology after Trump told reporters: “I don’t know much about it other than I launched it, other than it was very successful.”
When informed that his coin had raised several billion dollars, Trump downplayed the figure, remarking that it was “peanuts” compared to the wealth of tech billionaires present at an AI press conference.
Market analysts have also raised serious concerns about the token’s structure. David Zimmerman, an analyst at crypto research firm K33, described the tokenomics as “horrendous for a meme-coin,” pointing to the fact that Trump and the team behind the coin control approximately 80% of the total supply.
This arrangement theoretically allows them to profit enormously if they were to liquidate their holdings, though K33 acknowledges that mechanisms are in place to partially shield investors from immediate price shocks.
Grzegorz Drozdz, market analyst at investment firm Conotoxia, expressed concern that “the introduction of these coins during the presidential inauguration raises concerns about potential conflicts of interest and may undermine the dignity of the president.”
Trump’s Crypto Agenda
Despite criticism, Trump has enthusiastically embraced cryptocurrency since returning to office, branding himself the “crypto president.” During his campaign, he promised Bitcoin supporters he would make the United States the “crypto capital of the planet,” though concrete policy actions were initially slow to materialize in the early days of his administration.
More recently, Trump has begun implementing his crypto agenda through executive orders. He established a presidential working group tasked with proposing new cryptocurrency laws and regulations. Additionally, he ordered the creation of a Strategic Bitcoin Reserve and a Digital Asset Stockpile, which will include various digital currencies confiscated by the federal government through criminal or civil proceedings.
Some industry analysts view the president’s embrace of cryptocurrency as potentially beneficial for the sector. Jeff Dorman from investment firm Arca suggested that the “TRUMP token just signaled to every company, municipality, university & individual brand that crypto can now be used as a capital formation and customer bootstrapping mechanism.”
However, many crypto enthusiasts are awaiting more substantive policy changes rather than promotional activities. Dan Hughes from crypto firm Radix expressed concern that “this pattern of celebrity-driven token launches, particularly from political figures, potentially marks a concerning trend in crypto markets where influence and liquidity manipulation could overshadow fundamental value creation.”
