Trump Memecoin Launch May Have Done More Harm Than Good, TD Cowen Says

Since then, TRUMP has been trading in a range, seemingly stuck at the US$43 (AU$68.58) mark. But, according to investment bank TD Cowen, the memecoin launch may have done more harm than good.

President Donald Trump's memecoin launch has drawn mixed reactions from the crypto community and regulators.

The coin, named ‘Official Trump’ and trading under the ticker TRUMP, was launched on Friday as the former president awaited his inauguration on Monday.

The coin soared initially, but quickly plummeted after Melania Trump also unveiled a memecoin of her own. However, the coin later recovered and continued to rise.

While the memecoin was trading at around US$43 (AU$68.58) on Wednesday, its launch has sparked concerns among regulators.

According to investment bank TD Cowen, the launch may have done more harm than good.

On Tuesday, TD Cowen's Washington Research Group said in a note that investigations by Democrats could focus on whether foreign governments and business interests used token purchases to curry favor with Team Trump.

The group around Jaret Seiberg said that as Democrats investigate TRUMP token trading and Trump family monetisation, Republicans will likely defend these activities.

This partisan divide will worsen as Trump's team is unlikely to cooperate with Democratic investigations, which will complicate efforts to resolve legal confusion around crypto.

Waters: TRUMP Launch Highlights Regulator Concerns

California Democrat Rep. Maxine Waters was one of the first to criticise the TRUMP launch.

In a statement, Waters said that the coin “represents the worst of crypto and shows why many regulators, advocates, and policymakers have long been worried”.

The Democrat argues that large corporate and national donors could have bought TRUMP to “show their ‘respect’ for the President”, and could include US adversaries, like “Russia and China, which have much to gain from influencing a Trump presidency”.