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cryptonews 2025-01-24 05:07:47

Elizabeth Warren Slams Trump’s Memecoin as a Tool for Presidential Profiteering

Elizabeth Warren Slams Trump’s Memecoin as a Tool for Presidential Profiteering

Elizabeth Warren on Wednesday accused President Donald Trump and his wife of unethical behavior through their latest memecoin ventures. She urged federal regulators to investigate potential ethics violations, underscoring the need for accountability. Last week, just ahead of his inauguration as the 47th US President, Trump launched the $TRUMP memecoin , making the announcement on Truth Social. Shortly after, Melania Trump unveiled the $MELANIA coin through her social media channels, with distribution handled by MKT World, a company connected to her. Warren and Rep. Jake Auchincloss of Massachusetts drafted a letter to the US Office of Government Ethics, the SEC, the Treasury and the CFTC, outlining their concerns. They argued that the launch has personally enriched Trump, created a pathway for the crypto industry to channel funds to him, and introduced a volatile financial asset allowing people worldwide to speculate on his political future. Additionally, they posed questions to the regulators, expecting answers by Feb. 4. Trump’s Memecoins Spark Fears of Unregulated Global Influence and Investor Risks They added that Trump and his wife’s net worth skyrocketed to $58b overnight. They raised concerns that anyone, including leaders from hostile nations, could secretly purchase these coins, potentially enabling unregulated and untraceable foreign influence over the US President. At the same time, they said that Trump’s supporters shoulder the financial risks tied to $TRUMP and $MELANIA. Additionally, they cautioned that these memecoins could ultimately harm the very people Trump claims to support. They alleged that Trump and his businesses, which control 80% of $TRUMP, could sell their holdings after three years, reaping enormous profits while triggering a sharp decline in the coin’s value, leaving his supporters to bear the financial losses. Chainalysis Reveals Trump’s Memecoins Dominated by 40 Crypto Whales Warren and Auchincloss raised concerns about the Trump family’s substantial ownership of the tokens and the conflicts of interest it creates. They pointed out that Trump’s companies, on average, could release 24m tokens into the market each month. With current prices fluctuating, this would translate to a monthly income of around $1.73b, totaling about $20.7b annually. This week, Chainalysis revealed that the majority of Donald Trump’s Official Trump ($TRUMP) token and Melania Trump’s Melania Meme ($MELANIA) token are largely controlled by just 40 crypto whales . These whales, each holding $10 million or more in tokens, account for 94% of the total token supply. Meanwhile, Chainalysis noted that smaller holders make up only a tiny fraction of the market. The post Elizabeth Warren Slams Trump’s Memecoin as a Tool for Presidential Profiteering appeared first on Cryptonews .

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