Donald Trump's cryptocurrency coin sparks concerns amid market frenzy

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President-elect Donald Trump launches $Trump cryptocurrency token days before inauguration, causing a surge in the crypto market and raising ethical concerns. The token, sold by CIC Digital LLC, has been criticized for potential exploitation of presidential office while promising deregulation of the crypto industry.

President-elect Donald Trump and his family have launched a new cryptocurrency token called $Trump, which features an image of Trump inspired by the July assassination attempt in Butler, Pennsylvania.

The venture, disclosed just days before Trump’s second inauguration, put the crypto market into a frenzy but has also raised ethical concerns among experts and people who see it as an effort to profit from the office he is about to occupy again, as reported by the New York Times.

The $Trump token is being sold by CIC Digital LLC, an affiliate of the Trump Organization, with the slogan “Join the Trump Community. This is History in the Making!” According to the website selling the tokens, CIC Digital and its affiliates own 80% of the token supply, which will be released gradually over the next three years.

Ethics lawyers have condemned the move, with Adav Noti, executive director of Campaign Legal Center, stating, “It is literally cashing in on the presidency- creating a financial instrument so people can transfer money to the president’s family in connection with his office. It is beyond unprecedented.”

Eric Trump, who helps run Trump Organisation business operations, defended the venture, saying, “I am extremely proud of what we continue to accomplish in crypto. $Trump is currently the hottest digital meme on earth. This is just the beginning.”

However, some in the cryptocurrency industry have criticised the token, with Nick Tomaino, a crypto venture capitalist and former executive at Coinbase, writing on social media, “Trump owning 80% and timing launch hours before inauguration is predatory and many will likely get hurt by it.”

General public have also raised questions over the launch especially considering its timing. People accused Trump of using his soon-to-be position as president to gain profit for himself. “The blatant grift is sickening,” said one person.

“Dropping TRUMP memecoin 2 days before becoming president is nasty work,” said a person identified as “Coffeezilla” on X.

An X user called “crypto King” said, How is this legal? How is this appropriate as a president? I feel like this is an embarrassment to republicans, MAGA, & the presidency.”

The value of the $Trump token surged from $7 to nearly $30 within hours of its launch, suggesting a fully diluted value of $30 billion. The website for the venture includes disclaimers limiting the ability of buyers to file class-action lawsuits and warning of the volatility of cryptocurrency markets.

Trump has announced his intention to appoint regulators who will lift restrictions on the sale of new tokens and ties among cryptocurrency companies and other more traditional financial enterprises, in contrast to efforts by President Joe Biden-era regulators to tightly regulate the industry.

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