The $TRUMP Coin: Clever Strategy or Crypto Scam?

On January 17, 2024, Donald Trump launched the $TRUMP meme coin, joining an exclusive list featuring Andrew Tate, Caitlyn Jenner, and The Hawk Tuah Girl in creating their own cryptocurrency meme coins.

It became the fastest meme coin to hit a market cap of nearly $15 Billion, with most of it owned by Trump-affiliated entities.

All of these raise some serious questions though: Is it a political strategy, a means to get wealthier, or something more fraudulent like a potential rug pull? Let’s dig deeper into the $TRUMP coin and the rise of the first crypto POTUS.

THE MONEY TRAIL 🔍
The $TRUMP Coin: Meme or Manipulation?

Hours before returning to the White House, Trump launched $TRUMP that boosted his net worth by billions overnight.

As Trump announced his meme coin on Truth Social and X, his new inner circle and crypto elites were partying to Snoop Dogg’s performance in a unique inauguration event, the "Crypto Ball" in Washington, D.C.

Little did the crypto world know that a meme coin is about to change how political influence is monetized in today’s digital age!

Numbers telling a story for the history books:

• Trump’s net worth jumped over $63 billion, with 89% tied to the coin

• Market capitalization hit nearly $15 billion at its peak

• Price surged from $6.50 to a peak of $75 within 48 hrs

• 85% of tokens are controlled by Trump-affiliated entities

The Ownership Web

Two key entities control the majority of $TRUMP tokens:

• CIC Digital LLC (Trump Organization subsidiary)

• Fight Fight Fight LLC (newly formed Delaware entity)

Critics say this concentrated ownership raises ethical questions about conflicts of interest and the potential for market manipulation.

The Double Play

The story deepens with Melania Trump's parallel launch of $MELANIA, creating a family dynasty in the crypto space:

• Launched two days after $TRUMP

• 90% concentration in a single wallet

• Market cap reached $2 billion within hours

• Peaked at $13.73 before dropping to $4.17

• Created a combined Trump family crypto empire worth billions

The Market Goes Brrrrr

The speculative nature of digital assets like meme coins makes them a risky bet for investors.

But when Trump marketed it as a celebration of “everything we stand for“, it was a golden opportunity for the crypto market to make a shit load of money out of practically nothing:

• Initial price surge driven by Trump's supporter base

• Artificial scarcity created through controlled token release

• Trading volume approached $1 billion shortly after launch

• Price volatility serves both as an attraction and a warning

The Legal Gray Zone

We are yet to see if the $TRUMP coin would join the Hawk Tuah Girl’s $HAWK coin in the crypto world’s hall of shame.

But the legalities behind the 47^th President’s meme coin are a little too gray to ignore:

• No clear regulations governing political figures' involvement in crypto

• Current ethics laws weren't designed for digital assets

• Regulatory bodies struggle with classification and oversight

• Trump’s dual role as a major stakeholder and sitting president creates a blurry line between governance and personal profit.

Our Take

The $TRUMP meme coin could just be all about money for its owners, as it seems to be.

But one key detail of this is more evident than others - how it is a perfect blueprint for converting political power into direct financial gain.

If this is any sign of the times to come, one thing is for sure - the political class in D.C. and around the world now have a proven way to turn their influence into more wealth, all under legal gray areas and the guise of community-driven initiatives.

COMMUNITY🤝

MONEY FLOWS 🌍

• President Donald Trump announced a new partnership involving OpenAI, Oracle, and SoftBank for a $500 billion AI infrastructure venture called ‘Stargate‘. The initial investment will be $100 billion, with plans to reach $500 billion over four years.

• According to a Bloomberg report, India is ready to repatriate its illegal migrants from the US to avert a trade war. The two countries have identified some 18,000 illegal Indian migrants in the US to be sent back home, Bloomberg reported citing people familiar with the matter.

NEWSWORTHY 🗞️

#1 — Trump Pardons Silk Road Founder Ross Ulbricht After 11 Years in Prison 🖋️

#2 — As fighting in Gaza stops, Israel launches a major military campaign in West Bank 🇮🇱

#3 — This "Silent Killer" Disease Has Targeted Nearly Half Of US Adults 🚑

PERSONAL UPDATES FROM GEN🎤

I am changing my content direction. As you have seen in this week’s newsletter, we will follow the money and corruption behind society’s biggest issues. We’ll no longer be just focused on breaking news.

We’ll pick one pressing issue each week and dig deep into the money and corruption behind it for you. It’s going to be a lot more focused on business and dark economy.

And to reflect this shift, we’re changing our newsletter name.

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