President Trump Denies Profiting from TRUMP Meme Coin Amid Controversy

President Donald Trump has firmly denied allegations that he is profiting from the controversial TRUMP meme coin. The cryptocurrency launched earlier this year quickly drew public attention for its soaring valuation and close ties to Trump-affiliated organizations. Speaking during a recent interview with NBC News, Trump distanced himself from the meme coin’s financial performance, insisting he has not been actively involved in monitoring the project. “I’m not profiting from anything,” Trump said. “I started this long before the election. I haven’t even looked at it.” Notably, the TRUMP token was launched on January 18, just two days before Trump’s inauguration for his new term, as an “official” meme coin on the Solana blockchain. Within 24 hours of launch, its value surged to $77, pushing its fully diluted valuation (FDV) to an eye-watering $62 billion. However, the coin has since dropped nearly 85% from its all-time high. Trump’s comments came in response to questions regarding the ethical implications of a sitting president backing a cryptocurrency, particularly one bearing his name and tied to organizations he is connected to. In April, a public announcement inviting the top 220 holders of the TRUMP token to a gala dinner featuring Trump himself triggered a 60% price rally in the coin and a burst of on-chain activity. Further pressed on the timing and impact of such announcements, Trump said, “ I didn’t even know what it surged to. I have no idea. You’d have to tell me.” He also emphasized the broader importance of crypto, stating, “I want crypto. I think crypto is important because if we don’t do it, China is going to.” Despite his dismissals, blockchain data shows that CIC Digital and Fight Fight Fight control 80% of the TRUMP token’s total supply, all entities with ties to the Trump Organization. Meanwhile, reports by The New York Times and Financial Times suggest that the project has generated substantial income for these entities. As of March, total revenue from fees and commissions linked to the token had reached $350 million. Meanwhile, investor losses by mid-February were estimated at $2 billion. That said, critics have argued that Trump’s involvement, even indirectly, could blur the line between public service and private gain. Recall that in February, consumer advocacy group Public Citizen filed a complaint with the Department of Justice, alleging that Trump’s promotion of the TRUMP meme coin violated federal laws prohibiting gift solicitation by public officials. Earlier in January, Senator Elizabeth Warren had called for investigations into the TRUMP and MELANIA meme coins.

Source: ZyCrypto