In an unexpected move just days before his inauguration, President Donald Trump launched two meme coins, $TRUMP and $MELANIA, igniting a wave of criticism from both political opponents and industry insiders. Once viewed as a potentially supportive figure for the cryptocurrency sector, Trump’s recent actions have led to mixed feelings among the crypto community, particularly as many had hoped he would usher in a new, more favorable regulatory environment for digital assets. The timing of the launches coincided with a high-profile celebration among crypto enthusiasts known as the “Crypto Ball” held in Washington, D.C., which featured the rapper Snoop Dogg and was a highlight for industry advocates.

Trump’s initial announcement of the meme coin at the event caught many in attendance off guard, especially given the nature of meme coins, which often hold no inherent value and rely heavily on market speculation and hype. According to CNN, the Trump coin generated significant interest, leading to trading fees of millions for the Trump Organization in its initial days.

However, concerns about the legitimacy and ethical implications of these coins quickly surfaced. Experts pointed out that Trump’s team controls at least 80% of the coin supply, raising questions about market manipulation and conflict of interest. “It just felt very grifty and cheap,” stated Tom Schmidt, a partner at Dragonfly, reflecting the sentiment of many within the industry who view the move as self-serving.

This discontent is mirrored in statements from various stakeholders in the crypto realm, who fear that associating Trump’s presidency with meme coins could undermine broader initiatives aimed at establishing a legitimate crypto framework. Nic Carter, a prominent crypto investor, noted that it undermines the seriousness of any liberalization of regulations that Trump undertakes for the crypto space, saying, “It makes it look self-interested.” Similarly, renowned crypto researcher Angela Walch commented, “The crypto sector put someone in power whose first act is to emphasize and take advantage of the opportunity for grift within crypto,” expressing embarrassment at the situation.

Ethics experts and legal analysts have also raised red flags regarding potential implications for national security. Critics, including legal analyst Puja Ohlhaver, have stated that these coins could allow foreign entities to exert influence over Trump’s policy decisions, posing a significant risk. As these tokens can be traded anonymously, the possibility of their use in bribery or lobbying efforts has provoked considerable concern across political and regulatory lines.

Amidst this backdrop, the meme coin landscape is viewed as a particularly volatile and speculative environment. A report from AP News highlighted the rapid bookended fluctuations in token values, where $TRUMP surged to prices over $70 before crashing down to near $43 shortly after the launch of Melanie Trump's coin.

While Trump has downplayed the significance of the coins, suggesting that they reflect his support for his followers rather than an investment opportunity, industry insiders are left to grapple with the fallout from his actions. The pair of launches raises essential questions concerning the ethical boundaries of the president dabbling in such speculative financial products, especially as he positions himself as a supporter of the crypto sector. The Hill noted that Trump's operation of meme coins might not sit comfortably with proposed future regulations aimed at bringing clarity to the crypto ecosystem.

The controversy encapsulates a broader dilemma faced by the crypto industry—how to navigate the volatility and reputation issues associated with meme coins while striving to gain legitimacy and wider acceptance in the financial landscape. As echoed by analysts, “If Trump’s bringing his maybe not as technically sophisticated supporters on chain to trade this thing, they’re going to lose money,” suggesting that the implications of Trump’s foray into meme coins will stretch far beyond just his financial gains.

For further insights into the implications of Trump's meme coins on the cryptocurrency landscape, visit TIME.