- Trump’s $TRUMP cryptocurrency token earns nearly $900,000 in trading fees in two days.
- The surge follows an announcement offering dinner with the president to top token holders.
What happened: Memecoin trading fees skyrocket
President Donald Trump and his associates have earned nearly $900,000 in trading fees over two days from the $TRUMP cryptocurrency token, according to Chainalysis, a blockchain data firm. The significant increase came after an announcement that the top 220 holders of the token would be offered dinner with the president. The event, titled “Have Dinner in Washington, D.C. With President Trump,” is scheduled for May 22, with a reception for the top 25 holders and a “VIP White House Tour” the following day. The $TRUMP memecoin’s value jumped more than 50% following the announcement, boosting its total market value to $2.7 billion.
The initiative has sparked controversy, with critics arguing that it represents an attempt by the president to monetise access to himself. Democratic senators Adam Schiff and Elizabeth Warren have called on the U.S. Office of Government Ethics to investigate whether the promotion constitutes “pay to play” corruption. Delaney Marsco, the director of ethics at the Campaign Legal Center, described the coin and dinner contest as an unprecedented ethics breach, though she noted that it is unlikely to be illegal. The majority of the $TRUMP token supply remains locked under a three-year vesting plan, with coins gradually becoming available over time. This structure is intended to protect investors by preventing insiders from cashing out all at once, a practice known in the crypto world as a “rug pull.”
Also read: Trump’s anti-DEI orders spark sector-wide backlash
Also read: Trump meme coin surges on promise of presidential dinner
Why it is important
The $TRUMP memecoin’s rapid increase in trading fees and market value highlights the potential for high returns in the volatile cryptocurrency market. However, the controversy surrounding the dinner contest underscores the ethical and regulatory challenges associated with such initiatives. The involvement of political figures in cryptocurrency ventures raises questions about the potential for conflicts of interest and the need for greater regulatory oversight. The $TRUMP token’s structure, with a significant portion of its supply locked under a vesting plan, reflects common practices in the crypto industry aimed at protecting investors. The initiative also highlights the broader trend of political figures engaging with the cryptocurrency market, despite its inherent risks and regulatory uncertainties.
