Trump Faces Strong Backlash for Launching Meme Coin TRUMP Ahead of Inauguration

The current President-elect of the United States, Donald Trump, has sparked controversy in the cryptocurrency field after launching the official Trump meme coin (TRUMP) on Solana (SOL) two days before the inauguration ceremony. The announcement on January 17th through Trump's Truth Social account clearly states that this currency is for him and his "victory". Initial speculation suggests that this may be a hack, but confirmation was soon given, with Trump becoming the first US president to support a meme currency. Critics have raised ethical concerns Like other cryptocurrencies, the TRUMP meme coin has been criticized for its lack of real-world utility. Critics and analysts point out that leveraging the Trump administration's position to authenticate a digital currency is questionable. YouTuber Stephen Findeisen, also known as Coffeezilla, criticized the timing of the project. In a post on January 18, he called the launch of this currency "unethical" and expressed concern about 80% of the reported funds being distributed to Trump's inner circle. Findeisen described the situation as a "unpleasant job" due to the high risk of loss for inexperienced investors.

Peter Schiff, an economist who always dismisses cryptocurrencies, has mockingly likened this currency to Bitcoin while ridiculing it. Former Trump assistant Anthony Scaramucci called it "corrupt" and warned that it could have a negative impact on the cryptocurrency market in general. Max Schwartzman, an influential figure in cryptocurrency, said there is a possibility that Trump's account was hacked because the TRUMP COIN website has a similar design to Trump's previous NFT project. Others, like 0xCygaar, point out that both have similar technical structures, which only adds to the speculation.

Explosive growth amidst controversies After its launch, it took only 15 minutes for this token to reach a market capitalization of $400 million. This launch also witnessed SOL, the native token of Solana, reaching an all-time high of $267 due to the excitement surrounding the TRUMP token. However, the TRUMP token has skyrocketed and recorded an acceptance rate of over 12,000% since its launch despite the strong reactions. The token's value reached nearly $35 and then fluctuated around $29, bringing the market capitalization to $5.98 billion. Successful traders have made a lot of money, with one of them reportedly earning $50,000 to $1.1 million in just a few hours. However, there are still many doubts about the prospects of the token in the future. Currently, only 20% of the total 1 billion TRUMP coins are in circulation and the remaining 80% will be released in the next 36 months. Currently, the first twenty people hold 87.02% of the total token supply, leaving only 12.97% for all other investors and traders. The developer's wallet alone is estimated to be worth around 15.5 billion dollars, which raises questions about developer control and market manipulation. Some analysts argue that this type of ownership control undermines the tokens being discussed. Crypto analyst JRNY Crypto raises concerns about the lack of specific information from Trump's advisors to support the project. FOMO on the TRUMP token has spurred many traders into action, driving up the price of Solana and its network activity. Analyst Will Clemente pointed out the frenzy, claiming that traders have liquidated other assets to buy into the TRUMP phenomenon. However, some analysts have expressed concerns that the rapid pace could lead to a quick decline.