Trump’s $USTrump Coin Launch Draws Scrutiny Over Ethics and Investor Losses

The memecoin generated millions for Trump’s family but faced backlash for its impact on the crypto market and investor protections.

Donald Trump launched a memecoin, $USTrump, three days before his presidential inauguration, generating $58 million in fees for his family within 24 hours.
The coin’s value skyrocketed initially, briefly reaching a market capitalization of over $5 billion, but later plummeted by 60%, leaving many novice investors with significant losses.
Critics within the crypto industry labeled the launch a cash grab, citing concerns about its tokenomics, which allocate 80% of the coin supply to creators over three years.
Legal and ethical questions have arisen about the coin, with calls for investigations into whether it constitutes an unregistered security and potential conflicts of interest given Trump’s regulatory influence as president.
The launch is part of Trump’s broader push to promote the crypto industry, including an executive order to loosen regulations and appointing crypto-friendly officials to key positions.