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4mo ago

Trump's Meme Coin Faces Volatility as SEC Announces Crypto Task Force

The launch of Trump and Melania's meme coins raises ethical concerns and market instability while sparking debates on crypto regulation.

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President-elect Donald Trump dances with The Village People at a rally ahead of the 60th Presidential Inauguration. (AP)
Mark Zuckerberg, chief executive officer of Meta Platforms Inc., from left, Lauren Sanchez, Jeff Bezos, founder of Amazon.com Inc., Sundar Pichai, chief executive officer of Alphabet Inc., and Elon Musk, chief executive officer of Tesla Inc., during the 60th presidential inauguration in the rotunda of the US Capitol in Washington, DC, US, on Monday, Jan. 20, 2025.

Overview

  • The $TRUMP meme coin, launched by Donald Trump before his inauguration, saw its value peak at $70 before falling to $30 and recovering to $44 following the SEC's announcement of a crypto task force.
  • The SEC's new task force, led by Commissioner Hester Peirce, aims to establish a clear regulatory framework for cryptocurrencies and address coin registration issues.
  • Ethics experts have raised concerns about potential conflicts of interest, given Trump's ownership of 80% of the $TRUMP coin's supply and his regulatory role as president.
  • The launch of Melania Trump's $MELANIA coin caused a sharp drop in $TRUMP's value, with critics questioning the timing and strategy behind the back-to-back launches.
  • Allegations of insider trading have surfaced after a trader reportedly made over $100 million by purchasing $TRUMP tokens shortly before its announcement, raising questions about transparency.