bitcoin
Bitcoin (BITCOIN)
$97,244 1.82%
ethereum
Ethereum (ETHEREUM)
$2,733 3.90%
binancecoin
BNB (BINANCECOIN)
$668.72 0.23%
solana
Solana (SOLANA)
$201.44 5.44%
ripple
XRP (RIPPLE)
$2.73 12.29%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000017 4.72%
pepe
Pepe (PEPE)
$0.000010 8.87%
bonk
Bonk (BONK)
$0.000019 9.93%
bitcoin
Bitcoin (BITCOIN)
$97,244 1.82%
ethereum
Ethereum (ETHEREUM)
$2,733 3.90%
binancecoin
BNB (BINANCECOIN)
$668.72 0.23%
solana
Solana (SOLANA)
$201.44 5.44%
ripple
XRP (RIPPLE)
$2.73 12.29%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000017 4.72%
pepe
Pepe (PEPE)
$0.000010 8.87%
bonk
Bonk (BONK)
$0.000019 9.93%
bitcoin
Bitcoin (BITCOIN)
$97,244 1.82%
ethereum
Ethereum (ETHEREUM)
$2,733 3.90%
binancecoin
BNB (BINANCECOIN)
$668.72 0.23%
solana
Solana (SOLANA)
$201.44 5.44%
ripple
XRP (RIPPLE)
$2.73 12.29%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000017 4.72%
pepe
Pepe (PEPE)
$0.000010 8.87%
bonk
Bonk (BONK)
$0.000019 9.93%
Disclosure
Cryptocurrency trading is speculative and your capital is at risk when you trade. We may earn affiliate commissions from some of the products on this page - at no extra cost to you.
Sen. Elizabeth Warren Calls for Investigation into TRUMP and MELANIA Meme Coins

Highlights:

  • Elizabeth Warren urges regulators to investigate Trump’s memecoins, citing ethical and financial concerns.
  • TRUMP and MELANIA coins dropped drastically, leading to investor risks and potential losses.
  • Warren criticizes the lack of transparency, consumer safeguards, and conflicts of interest in Trump’s memecoins.

The TRUMP and MELANIA meme coins launched by former President Donald Trump and First Lady Melania Trump have raised ethical and legal concerns within the crypto community. On January 22, Elizabeth Warren, a member of the Senate Banking Committee, called on financial regulators and the government ethics office to investigate Trump’s memecoins. She raised concerns that he and his wife are leveraging their presidential status for substantial financial gain.

Advertisement

Banner

In a surprising move just before taking office on January 20, Trump launched the Official Trump (TRUMP) memecoin. It spiked to a peak of over $73 the day after its launch, reaching a market value of more than $14.5 billion. However, it has since fallen by 53%, now trading around $35. On January 19, Melania Trump released her token, Melania Meme (MELANIA). It surged to $13 before dropping to $2.70.

The letter was directed to Acting SEC Chair Mark Uyeda, Acting Treasury Secretary David Lebryk, Acting CFTC Chair Caroline Pham, and Director David Huitema of the Office of Government Ethics. Warren highlighted that these coins are available for anyone to buy, increasing the risk that foreign governments or individuals could use them to funnel money to the Trump family indirectly. This situation could jeopardize U.S. national security and pose serious ethical concerns.

She stated:

“Anyone, including the leaders of hostile nations, can covertly buy these coins, raising the specter of uninhibited and untraceable foreign influence over the President of the United States, all while President Trump’s supporters are left to shoulder the risk of investing in TRUMP and MELANIA.”

Concerns Over TRUMP Meme Coin Holdings and Potential Investor Losses

Representative Jake Auchincloss has teamed up with Elizabeth Warren to urge regulatory authorities to provide responses by February 4. The duo stated that 80% of the TRUMP meme coins are reportedly owned by CIC Digital and Fight Fight Fight LLC, both linked to the Trump Organization, referencing a CNN report. This leaves the remaining 20% of investors to face the costs of the coin’s price volatility.

They said these entities might sell their holdings for large profits, which could lead to a sharp drop in the coin’s value.

Warren Highlights Conflicts of Interest

Elizabeth Warren also raised concerns about conflicts of interest. As president, Trump would have the power to appoint leaders of agencies regulating the crypto sector, raising questions about the potential for unbiased governance. Warren also criticized the absence of transparency and safeguards for consumers. She pointed out that the terms and conditions for the TRUMP and MELANIA coins contain disclaimers that exempt the issuers from liability in cases of fraud.

The memecoin market has also drawn criticism from ARK Invest CEO Cathy Wood, who argues that it lacks real-world value.

Whales Control Majority of Trump Meme Coins Supply

Chainalysis reports that 40 crypto whales control TRUMP and MELANIA tokens. These whales hold over $10 million in either token, making up 94% of the total supply, the firm said in a Jan. 22 post on X. Wallets holding $1 million to $10 million account for 2.1%, while those with $100,000 to $1 million represent 1.7%. Around 2.2% of token owners hold less than $100,000, emphasizing the dominance of high-value holders.

eToro Platform

Best Crypto Exchange

  • Over 90 top cryptos to trade
  • Regulated by top-tier entities
  • User-friendly trading app
  • 30+ million users
9.9

5 Stars

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.

Advertisement

Banner

Advertisement

Banner

Advertisement

Banner