After launching two new meme tokens, Donald Trump and his family are already under heat from multiple crypto executives.
Trump released his “Trump coin” on Friday, and his wife Melania launched her “Melania” token on Sunday. Despite the success of these two tokens, some crypto leads are displeased, claiming that meme coins are not helping to rebuild the crypto industry’s reputation.
Trump’s token release has raised concerns with multiple crypto leads
Most crypto executives have not been fans of meme coins, believing the tokens offer little overall value and only proceed to increase volatility. They have been labeled risky, speculative, and frivolous primarily because they rely on social media to attract popularity.
Balaji Srinivasan, former chief technology officer at Coinbase, even tagged meme coins as a “zero-sum lottery,” claiming their price will eventually sink, leaving the last traders to bear their losses.
Trump’s token was already trading at $50 before retracing to $44.5. Its market cap briefly topped $15 billion before falling slightly. The Melania meme is also close to hitting $2 billion in market cap and trading at $6.42. However, the tokens do not sit very well with crypto executives, believing they could contribute to more market uncertainty and volatility.
Bitcoin has supposedly profited from the Trump token launch, hitting a new peak on Monday. Nevertheless, the recent launch of Trump’s family meme coins threatens to undo much of the hard work put into establishing the credibility of digital assets.
Gabor Gurbacs, founder of PointsVille, even remarked:
Trump needs to fire his crypto advisors, from top to bottom, and replace them with people who know what they are doing. The meme coins cost the US, the presidency, and his family a lot of credibility, and the consequences haven’t even started.
Gabor Gurbacs
The crypto industry is still expecting the Republican lead to sign more crypto executive orders, which could push for more mainstream adoption and favor its trade.
Scaramucci believes Trump’s priorities before his inauguration should tell us what to expect in his administration
According to Anthony Scaramucci, Trump’s director of communications in 2017, Melania’s meme token is making the Trump coin fall. He added that the tokens’ performance was a question of “Which one of the kids’ coins will perform best?”
He commented that if, on the day before his inauguration, Trump was only focused on launching his meme tokens, it should tell us everything we need to know.
If indeed Trump’s token release was a marketing stunt or a measly cash grab opportunity, it could leave behind a messy trail for the crypto industry to clean up.
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Source: https://www.cryptopolitan.com/trump-meme-coins-to-ruin-cryptos-credibility/