Trump's Meme Coin: A Scam or a Joke?

Meme coins, a type of cryptocurrency inspired by internet memes, have been making headlines recently, with Public Citizen, a non-profit consumer advocacy organization, filing a formal complaint against a meme coin associated with former U.S. President Donald Trump. The complaint alleges that the President violated rules around solicitation of gifts by promoting the meme coin.

The complaint, filed with the U.S. Department of Justice and the Office of Government Ethics, argues that Trump is scamming his supporters by selling the meme coin as a way for people to "show their support." The complaint letter cited several social media posts from both X (formerly Twitter) and Trump's own platform, Truth Social, promoting the "Official Trump Meme" and urging people to send money. Trump reposted these promotions on January 20th and 21st, following his inauguration.

The complaint also stressed that Trump himself had declared that the meme coin is not an investment. According to the meme coin website, Trump memes are "not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type." However, the complaint argues that a person sending money for a Trump meme is not purchasing a tangible product, but rather receives only a digital blockchain receipt.

Bartlett Naylor, a financial services advocate at Public Citizen, stated that Trump's soliciting money from the public for personal enrichment would be a "reprehensible abuse of the presidency." He called on the Department of Justice and Office of Government Ethics to investigate whether Trump's solicitation is in violation of the law and take appropriate action if necessary.

The complaint also raised concerns about the Constitution's ban on accepting gifts from "king, prince, or foreign state." However, it is difficult to determine if foreign state actors are gifting the President by purchasing a Trump meme, given the nature of crypto exchanges.

Crypto observers have mocked the meme coin launch, with one user describing it as "brazen corruption" and an "effective 'For Sale' sign on the White House" that facilitates anonymous bribes in any amount. Meanwhile, former White House Communications Director Anthony Scaramucci said that the President's meme coin is "bad for the industry," likening it to "Idi Amin level corruption."