Trump's Memecoin Value Drops 85% Since Launch

Donald Trump, the US President, has given conflicting answers regarding his profits from the memecoin he launched in January, just days before his re-election. In an interview with Kristen Welker on May 4, Trump stated that he was "not profiting from anything" when asked about critics' claims that he was profiting from the presidency through the memecoin. However, he later admitted that he had not even looked into the matter and suggested that if he owned stock in something and did a good job, the stock market going up would mean he was profiting.

Trump launched his memecoin, Official Trump (TRUMP), on January 17, which reached a peak of $73.43 two days later, just a day before his inauguration. The token has since been in a steady decline, but it surged late last month after its website offered top holders a chance to dine with Trump on May 22. It is currently trading at $11.35, down nearly 85% from its peak. Trump was apparently unaware of his token’s recent surge, repeatedly asking how much it was now worth.

Two companies, CIC Digital LLC, an affiliate of Trump’s sprawling Trump Organization, and Fight Fight Fight LLC, which is co-owned by CIC Digital, together own 80% of the token’s total 1 billion supply. Most of those tokens are locked up and will be released over the next three years. The first unlock on April 18 saw 40 million tokens, worth $454 million, go to CIC Digital. Trump-controlled entities own 80% of the TRUMP token supply, which will be released periodically until 2028.

Trump’s memecoin project has made at least $350 million so far, according to a March analysis. Those behind the token made $314 million from selling them and $36 million from fees. Trump has been criticized over his many crypto dealings, which his opponents say are a conflict of interest as he looks to unburden the sector from regulators. Even those in his own party, Republican Senators, have criticized Trump’s dinner offer to his top tokenholders.

During the interview, Trump said he would contribute his presidential salary “back to the government,” prompting Welker to ask if he would also contribute any potential crypto earnings. Trump answered, “I never thought of that,” and compared it to contributing all of his real estate that he’s owned for many years if it goes up a little bit because he’s president and doing a good job. He said, “I don’t think so.”

In a part of the interview, Trump made a meandering statement that reiterated his campaign promise to support crypto. He said, “I want crypto. I think crypto’s important because if we don’t do it, China’s going to. And it’s new, it’s very popular, it’s very hot.” Trump claimed that the “went after it violently, and then, before the election, he changed his tune entirely” to garner the crypto vote. Trump again made his point when speaking to reporters on the White House South Lawn on May 4, saying “crypto is very important," and wanted “to keep it away from China.” He claimed China “will take it over, just like AI, just like so many other industries, or whatever you want to call them.”

Trump’s conflicting answers over his memecoin profits raise questions about his transparency and potential conflicts of interest. His statements suggest a lack of awareness or understanding of his own crypto dealings, which could be seen as problematic for a leader who is supposed to be setting an example of ethical behavior. His repeated emphasis on the importance of crypto and his desire to keep it away from China also raise questions about his motivations and the potential influence of his personal interests on his policy decisions.