TRUMP and MELANIA Memecoins Draw Ire From Crypto Industry Insiders

Among the most vocal critics of TRUMP, the controversial and wildly popular memecoin launched by Donald Trump on the eve of his 2025 inauguration, are the very crypto enthusiasts he may have hoped to court.

Donald Trump's foray into the crypto realm has sparked mixed reactions within the industry. While some hail the move as a sign of endorsement for cryptocurrencies, others voice concerns over potential conflicts of interest and the trivialization of the sector.

Fresh off his 2025 inauguration, Trump has unveiled two new memecoins: TRUMP and MELANIA. The coins, named after the president and first lady, respectively, have ignited a firestorm of discussion in the crypto community.

TRUMP coin, launched on Jan. 17, saw a rapid surge in value, climbing from $7 to an all-time high of $75 within 24 hours before settling at $38. The coin's price movements have left some traders elated, with reports emerging of overnight gains in the millions.

However, the astronomical rise has also sparked concern among industry insiders. The potential for conflicts of interest is a focal point of the backlash, with critics raising concerns that the token could enable individuals to curry favor with the president.

According to X, former White House communications director turned crypto advocate Anthony Scaramucci voiced his apprehensions. “The most perilous aspect of Trump coin for the nation is what follows. Now, anyone globally can effectively deposit money into the bank account of the President of the United

States with just a few clicks. Every favor—be it geopolitical, corporate, or personal—is now openly for sale.”

The decision to launch a memecoin has also sparked broader criticism within the crypto industry. While memecoins have become a prominent use-case for blockchain technology, many developers argue they reinforce a get-rich-quick perception that undermines the sector's credibility.

Gabor Gurbacs, founder of digital asset firm Pointsville, posted on X: “Trump needs to dismiss his crypto advisors, from top to bottom.”

Specific concerns have been raised about the coin's distribution. According to blockchain analytics firm Bubblemaps, 80% of TRUMP tokens are concentrated in a small number of blockchain addresses controlled by CNC Digital, the firm that launched the coin. Such concentration is a hallmark of potential "pump-and-dump" schemes, where insiders inflate a token’s value before selling off their holdings, leaving other investors with losses.

There's no evidence that Trump's team plans to "dump" its tokens. Nicolas Vaiman, CEO of Bubblemaps, noted to CoinDesk that the distribution of TRUMP tokens at least matched what was outlined on its official website. Additionally, the insider-held tokens align with prior distributions of Trump's NFT trading cards, which were also managed by CNC Digital, meaning the tokens may be reserved for the president's NFT holders.

However, the same transparency does not apply to MELANIA. According to Bubblemaps, about 89% of MELANIA tokens are controlled by insiders. The on-chain supply does not match an official distribution breakdown on the token's website, which earmarked 35% of tokens for "public distribution" and "community."

According to Vaiman, the First Lady's memecoin has cast a shadow over the original TRUMP coin. “TRUMP could have been a statement from President Trump saying, ‘I endorse crypto,'” Vaiman said. “Melania launching her tokens feels like they just want to make as much money as they can on this, and then forget about it. It gives this a different flavor.”