President Donald Trump’s standing in the cryptocurrency industry has been damaged following the launch of meme coins by him and his wife

The crypto industry, which had faced challenges under the Biden administration and spent significant resources to support Trump's campaign, had hoped for his backing

President Donald Trump's standing in the cryptocurrency industry has been damaged following the launch of meme coins by him and his wife, a move that critics describe as a cash grab that undermines the industry's efforts to gain legitimacy.

The crypto industry, which had faced challenges under the Biden administration and spent significant resources to support Trump's campaign, had hoped for his backing to make digital assets a more integral part of the US financial system.

Trump had promised a more relaxed regulatory approach and appointed pro-crypto officials to key positions in government.

The value of bitcoin and other cryptocurrencies surged after Trump's victory, and a lavish “Crypto Ball” before his inauguration, featuring a performance by rapper Snoop Dogg, attracted attention.

However, during the event, Trump announced on social media that he was launching his own meme coin, a decision that disappointed many in the crypto community.

“I really was kind of bummed out when I saw it,” said Tom Schmidt, a partner at Dragonfly, a crypto venture capital firm. “It just felt very grifty and cheap.”

Some crypto enthusiasts even joked that they missed Gary Gensler, the former chairman of the Securities and Exchange Commission (SEC), who had been seen as the Biden administration's crypto antagonist due to the SEC's aggressive stance against crypto firms.

Meme coins, often born out of jokes, lack real value but can experience price surges if enough people invest in them. Popular meme coins like Dogecoin and Fartcoin have been the subject of scams, with investors being deceived into buying coins only for the prices to plummet.

The release of Trump’s meme coin initially caused a surge in price, reaching over $70 per coin, but this was followed by a steep decline after First Lady Melania Trump introduced her own meme coin. By Tuesday afternoon, Trump's meme coin was trading at about $45, while Melania's was valued at $4.

Trump's recent appointment of SEC Commissioner Mark Uyeda as the agency's acting chief was followed by the announcement of a new crypto task force, signaling a push toward a more sensible regulatory approach. Trump has promised to establish a US bitcoin stockpile and implement regulations to support crypto businesses in accessing broader financial markets.

However, some crypto supporters worry that by associating with meme coins, Trump risks damaging his ability to drive meaningful reforms.

“Now, on the cusp of getting some liberalization of crypto regulations in this country, the main thing people are thinking about crypto is, ‘Oh, it’s just a casino for these meme coins,’” said Nic Carter, a Trump supporter and partner at Castle Island Ventures. “It does the opposite of validating us, it makes it look completely unserious.”

The sale of Trump's meme coin is being organized by CIC Digital, an affiliate of the Trump Organization. The website for the coin promotes it as a fun expression of support, rather than an investment opportunity. It also notes that 200 million Trump meme coins are available, with plans to release 1 billion over the next three years.

The Trump Organization has recently implemented an ethics agreement that limits Trump's involvement in day-to-day business decisions and restricts financial information shared with him while he serves as president.

In addition to Trump and Melania, Michigan pastor Lorenzo Sewell, who delivered an inaugural invocation, launched his own cryptocurrency, named after him, which he claimed would benefit his church.