The Trump Family Launches $TRUMP and $MELANIA Memecoin: Reaction From Within Crypto Community

The recent launch of $TRUMP and $MELANIA memecoin by US President-elect Donald Trump and Melania Trump has become a subject of debate within the crypto industry.

Fresh off the heels of Donald Trump’s NFT launch, comes the launch of $TRUMP and $MELANIA memecoins, an event that has sparked contrasting reactions within the crypto industry. While some view the move as a sign of crypto-friendly administration, others remain skeptical.

Following Donald Trump’s announcement of launching his own NFT collection, a development that saw crypto exchanges rushing to list $TRUMP tokens, several now appear to be engaged in another round of listings.

Binance and Coinbase were among the first to list $TRUMP tokens, and now, as Donald Trump’s presidential inauguration nears, several other exchanges have joined in on the action.

Major crypto exchange GATE has announced the listing of $MELANIA tokens, joining Binance, Coinbase, and MEXC in listing Trump-related memecoins. The exchange noted that $MELANIA will be available to trade against USDT and BTC.

Binance, Coinbase, and MEXC listed $TRUMP tokens earlier this month, and now, with Trump’s family fully in on the crypto game, these memecoins have become a hot topic within the crypto industry.

With Trump’s administration set to begin in just days, many in the crypto industry believe that the launch of these memecoins is a sign that his administration might accelerate crypto-friendly regulations.

Some also believe that the tokens aim to rally and reward his crypto-supporting base, especially considering the timing of the launch, just days before Trump’s presidential inauguration.

However, not everyone is on board with the move, and crypto expert and ‘Trump supporter’ Nic Carter has taken to Twitter to express his disapproval.

Reacting to Donald Trump’s latest venture into the world of cryptocurrencies, Carter slammed the move as “preposterous,” adding that he strongly disagrees with what Trump is doing.

In a series of tweets, Carter expressed his disappointment over Trump’s decision to launch $TRUMP and $MELANIA memecoins, a move that has left many scratching their heads.

“This was entirely predictable, but I strongly disagree with what he’s doing. It’s preposterous and I’m embarrassed for him,” Carter wrote in one tweet.

Crypto journalist Zac Guzman has argued that the timing of the launch was likely deliberate. He noted that waiting until after Trump’s inauguration could have exposed him to violations of the U.S. Constitution’s Emoluments Clause, which prohibits a president from profiting from foreign governments.

There is a very important reason why the Trumps are launching $TRUMP and now $MELANIA so fast before the inauguration

And whether you love Trump or hate Trump, the fact is that waiting another day could’ve opened him up to Constitutional violations & impeachment (again) 🧵 pic.twitter.com/fYw2ZsjTK7

— Zack Guzmán (@zGuz) January 19, 2025

Trump’s previous ventures, including NFT drops through CIC Digital, reportedly earned him $7.2 million, while Melania’s NFT projects generated over $330,000. Guzman emphasized that launching the coins before taking office sidesteps these legal complications.

Former Coinbase CTO Balaji Srinivasan has warned investors to approach with caution. “A memecoin is essentially a zero-sum lottery,” he explained. “Every buy order matches a sell order, and after the initial hype, prices typically crash, leaving late buyers at a loss.”

A memecoin is a zero-sum* lottery.

There is no wealth creation. Every buy order is simply matched by a sell order. And after an initial spike, the price eventually crashes and the last buyers lose everything.

* It’s actually negative sum if the platform takes a cut.

— Balaji (@balajis) January 19, 2025

However, Srinivasan also came up with a bold suggestion: Trump could use $TRUMP tokens to distribute locked airdrops worth $100 to his 77 million voters, costing him $7.7 billion—less than a third of the asset’s potential value. A larger airdrop of $500 per person would still leave him with over $20 billion in assets. Such a move, he argued, could create a “social contract” between Trump and his supporters, offering a form of universal basic income (UBI) and potentially reshaping political funding dynamics.

Democrats have already targeted Trump’s foray into the memecoin space. Representative Sean Casten (D-Ill.), a critic of crypto on the House Financial Services Committee, accused Trump of prioritizing self-enrichment over ethical governance. “He continues to show that neither the well-being of his supporters nor ethical concerns will stand in the way of his financial interests,” Casten remarked.