Eric Trump has responded to the growing controversy surrounding the $TRUMP memecoin, a cryptocurrency launched by President-elect Donald Trump. The memecoin’s rapid rise and a whale trader’s $11.8 million profit have ignited widespread discussion about its ethical implications, especially as it coincides with Trump’s upcoming inauguration.
$TRUMP Memecoin’s Meteoric Rise
The $TRUMP token, launched late on a Friday, quickly became a focal point in the cryptocurrency world, with its market cap soaring to $5 billion by Saturday afternoon. Its price more than doubled to over $27 within just 24 hours of release, and trading volumes surpassed $11 billion. According to CoinGecko, the memecoin’s skyrocketing value has stirred up excitement among crypto enthusiasts, but also raised concerns from financial experts and critics.
The memecoin is primarily owned by CIC Digital LLC, a company linked to Donald Trump, which holds a significant 80% of the token’s supply. At the current market value, the token represents an estimated $20 billion in assets, prompting discussions about the intersection of Trump’s business ventures and his role as president-elect.
Whale Trader’s Profits and Market Volatility
A notable event occurred within hours of the launch when a whale trader reportedly purchased 860,895 $TRUMP tokens for $12 million at $13.94 per token. The trader then sold the holdings at $27.67, making an $11.8 million profit. This high level of volatility has sparked fears of market manipulation and potential harm to smaller investors entering at inflated prices.
Peter Schiff, a Bitcoin skeptic and economist, took to X to comment on the rapid rise of $TRUMP, highlighting that Bitcoin took four years to reach a $5 billion market cap, while $TRUMP achieved it in a single day. Schiff’s sarcastic remarks about making the memecoin part of retirement accounts drew mixed reactions, with some questioning the legitimacy of comparing the memecoin to Bitcoin.
Ethical and Financial Concerns
The launch of the $TRUMP token just days before Donald Trump’s inauguration has raised ethical questions, especially concerning potential conflicts of interest. Historically, presidents-elect have made efforts to separate their business interests from their official duties to avoid any appearance of corruption or favoritism. The close ties between Trump’s political figure and the memecoin have fueled concerns among ethics watchdogs.
Jordan Libowitz of Citizens for Responsibility and Ethics in Washington criticized the situation, suggesting that Trump’s business ventures, combined with proposals to deregulate industries that could benefit his financial interests, are concerning. Trump’s promotion of crypto-friendly policies during his campaign, including plans to overhaul crypto regulations and stockpile Bitcoin for the U.S. government, has added fuel to the fire.
Conclusion
As the $TRUMP memecoin continues to capture attention with its unprecedented rise in value, ethical questions about its launch and market manipulation remain unresolved. With the inauguration of Donald Trump fast approaching, the intersection of his financial ventures and political office is under intense scrutiny. Critics, including prominent figures like Anthony Scaramucci, continue to voice concerns over the potential for corruption, while others argue that the situation may further complicate the already volatile world of cryptocurrency.
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