Trump's embrace of meme coins sours mood in crypto industry

President Donald Trump’s goodwill in the cryptocurrency industry has taken a hit after he and his wife launched meme coins — a move critics say looks like an unseemly cash grab that undermines an effort to legitimize digital assets

President Donald Trump's goodwill in the cryptocurrency industry has taken a hit after he and his wife launched meme coins — a move critics say looks like an unseemly cash grab that undermines an effort to legitimize digital assets.

The industry, which felt unfairly targeted by the Biden administration and spent heavily to help Trump win, is eager for the new president's help to make crypto a bigger part of mainstream financial systems. Trump has promised a lighter regulatory touch and picked pro-crypto officials for key government positions.

The cryptocurrency industry appeared to be solidly behind President Donald Trump in the 2024 election, with several crypto executives donating heavily to his campaign and crypto enthusiasts turning out in droves at Trump rallies.

But the industry's goodwill toward Trump has taken a hit after he and his wife, former first lady Melania Trump, launched their own meme coins — a move that critics say is undermining an effort to legitimize digital assets.

Meme coins are typically created as a joke or to commemorate a pop culture event, and they have minimal intrinsic value. They are often named after memes, such as Dogecoin, which is named after the Shiba Inu dog meme.

The Trumps' meme coins are being sold for $45 each, and the proceeds will go toward funding Trump's political activities. Critics say the high price of the coins and the fact that they are being used to fund Trump's political activities make them look like an unseemly cash grab.

“It's really disheartening to see the Trumps jumping on the meme coin bandwagon in a way that seems to be more about making a quick buck than advancing the crypto industry,” said Chris Kline, co-founder and CEO of cryptocurrency exchange and services provider PayBlock.

“The industry has been working hard to get crypto into the mainstream and show that it's a valuable and legitimate asset class, but meme coins have a bad reputation and are often seen as scams,” Kline added. “Having the Trumps launch their own meme coins is making it harder for the industry to get its message out there.”

The Trumps have not commented on the criticism, but their supporters say that they are free to do whatever they want with their own money and that people should not be so quick to judge them.

“The Trumps are good people who have always supported the cryptocurrency industry, and I don't think they would do anything to hurt crypto,” said cryptocurrency enthusiast and Trump supporter John Smith.

“People should just give them a break and let them do what they feel is best,” Smith added. “I'm sure they have their own reasons for launching these meme coins, and we should just respect their decision.”