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Trump's embrace of meme coin sours mood in crypto industry

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Trump's embrace of meme coin sours mood in crypto industry
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Trump's embrace of meme coin sours mood in crypto industry

2025-01-22 06:48 Last Updated At:07:22

President Donald Trump’s goodwill in the cryptocurrency industry has taken a hit after he and his wife launched meme coins — a move critics say looks like an unseemly cash grab that undermines an effort to legitimize digital assets.

The industry, which felt unfairly targeted by the Biden administration and spent heavily to help Trump win, is eager for the new president’s help to make crypto a bigger part of mainstream financial systems. Trump has promised a lighter regulatory touch and picked pro-crypto officials for key government positions.

The price of bitcoin and other digital assets has soared since Trump won. A lavish “Crypto Ball” Friday ahead of Trump's inauguration sold tickets for thousands of dollars and featured a performance by the rapper Snoop Dogg.

But as that party was ongoing, Trump announced on social media he was offering his very own cryptocurrency in the form of a meme coin. The move dampened the mood for many in the crypto community.

"I really was kind of bummed out when I saw it,” said Tom Schmidt, a partner at a crypto venture capital firm Dragonfly. “It just felt very grifty and cheap.”

Some crypto fans even joked on social media they missed Gary Gensler, the recently departed chairman of the Securities and Exchange Commission who was viewed as the Biden administration’s chief crypto antagonist thanks to the SEC's aggressive enforcement actions against crypto companies.

Meme coins are among the wilder and more unregulated corners of the crypto universe. They often start as a joke with no real value but can surge in price if enough people are willing to buy them. Popular meme coins include Dogecoin, whose mascot is a dog, and Fartcoin. Scammers have tried to pump up the price of certain meme coins before dumping them on unsavvy investors.

Some crypto enthusiasts hailed the Trump meme coin’s release and eager buyers drove up the price of the coin to above $70 each. The price fell dramatically on Sunday after First Lady Melania Trump announced the launch of her own meme coin, which also saw an initial price spike followed by a large fall. As of Tuesday afternoon, Trump’s meme coin was trading at about $45 while the Melania meme coin was at about $4.

Trump named SEC Commissioner Mark Uyeda as the agency's acting chief Tuesday and Uyeda quickly announced he was launching a new crypto task force to set the SEC on a “sensible regulatory path.” Trump has promised to create a U.S. bitcoin stockpile and enact industry-friendly rules that make it easier for crypto companies to access the broader financial market.

But by associating himself so closely with meme coins, some crypto fans worry that Trump hurts his ability to enact reforms.

“Now, on the cusp of getting some liberalization of crypto regulations in this country, the main thing people are thinking about crypto is, “Oh, it’s just a casino for these meme coins,’” said Nic Carter, a Trump supporter and partner at the crypto investment firm Castle Island Ventures. “It does the opposite of validating us, it makes it look completely unserious.”

The sale of Trump meme coins was organized by CIC Digital, an affiliate of the Trump Organization. In promoting the meme coin, Trump told supporters to “Have Fun!” The website selling the tokens says they are meant as expressions of support and not an investment opportunity. The coin’s website said 200 million Trump meme coins are currently available, with plans to issue 1 billion over the next three years.

The Trump family business recently released an ethics agreement that prohibits Trump from “day-to-day” decision making at the Trump Organization when he’s president and limits financial information about the business shared with him.

The president and first lady were not the only ones promoting new cryptocurrencies around the inauguration. Lorenzo Sewell, the Michigan pastor who gave a spirited inaugural invocation Monday, announced the launch of a new coin named after him, which he said would be used to benefit his church.

“I need you to do me a favor right now, I need to you to go buy the official Lorenzo Sewell coin,” Sewell said in a video post on social media.

FILE - Then Republican presidential candidate former President Donald Trump speaks at the Bitcoin 2024 Conference on July 27, 2024, in Nashville, Tenn. (AP Photo/Mark Humphrey, File)

FILE - Then Republican presidential candidate former President Donald Trump speaks at the Bitcoin 2024 Conference on July 27, 2024, in Nashville, Tenn. (AP Photo/Mark Humphrey, File)

JERUSALEM (AP) — The United Nations’ emergency relief coordinator urged Israel on Thursday to lift its blockade of aid into the Gaza Strip, saying the halting of humanitarian aid amounts to “cruel collective punishment.”

The U.N. said thousands of Palestinians had breached a humanitarian field office in Gaza late Wednesday looking for aid. They took medicine and damaged vehicles in the melee but caused no injuries to staff.

Israel has blocked any humanitarian aid from entering the territory since the end of a ceasefire in March, throwing Gaza into what is believed to be the worst humanitarian crisis in nearly 19 months of war. Israel has said the blockade and its renewed military campaign are intended to pressure Hamas to release the remaining hostages it still holds and to disarm.

The war began when Hamas-led militants attacked southern Israel on Oct. 7, 2023, killing around 1,200 people, mostly civilians, and abducting 251. Hamas is still holding 59 hostages, 24 of whom are believed to be alive, after most of the rest were released in ceasefire agreements or other deals.

As Israel continued its strikes on the Palestinian enclave, another 18 people were killed and dozens more were wounded, Gaza’s Health Ministry said.

A United Nations aid group said its staff were safely evacuated after thousands of Palestinians breached its Gaza field office Wednesday evening and took medications. An official with the United Nations Relief and Works Agency, or UNRWA, called the looting “the direct result of unbearable and prolonged deprivation.”

⁠”The looting, while devastating, is not surprising in the face of total systemic collapse. We are witnessing the consequences of a society brought to its knees by prolonged siege and violence,” said Louise Wateridge, a senior emergency officer at the agency.

The breach, which took place at an UNWRA training center and field office, also caused damage to agency trucks and buses, she said. No injuries were reported among the staff.

Israel’s war against Hamas has killed more than 52,000 Palestinians, according to the territory’s Health Ministry, including more than 2,200 in the six weeks since Israel shattered the ceasefire on March 18. Some 1,200 people, mostly civilians, were killed in Israel by Hamas during the Oct. 7 attacks which started the war.

The United Nations says that more than 3,000 aid trucks with lifesaving supplies are backed up at the border outside Gaza. UNRWA said Thursday that the Israeli blockade means their trucks can't reach the 1 million children whose lives are in danger without them.

The agency also said that about 660,000 Palestinian children are out of school because of the ongoing war. UNRWA said in an X post that “the crossings must reopen, and the siege must be lifted.”

Israel has been striking homes, shelters and public areas daily since ending a ceasefire in March. It also has cut off the territory’s 2 million Palestinians from all imports, including food and medicine, for nearly two months.

U.N. food stockpiles have run out and aid groups say thousands of Palestinian children are malnourished. Israel says its blockade aims to pressure Hamas to release hostages. However, the U.N. high commissioner for human rights warned this week that starving civilians as a military tactic constitutes a war crime.

Tom Fletcher, the U.N. under-secretary-general for humanitarian affairs and emergency relief coordinator, said Thursday that while the hostages should be released and should never have been taken in the first place, international law mandates that Israel allow humanitarian aid into Gaza.

“Aid, and the civilian lives it saves, should never be a bargaining chip,” he said in a statement. “Blocking aid starves civilians. It leaves them without basic medical support. It strips them of dignity and hope. It inflicts a cruel collective punishment. Blocking aid kills.”

The U.N. Office for the Coordination of Humanitarian Affairs, or OCHA, has described severe shortages of food, water and medicine in Gaza as medical services collapse and charity kitchens shut down because of a lack of supplies. Hospitals have reported that cases of malnourished pregnant and breastfeeding women are rising sharply, and most newborns are now being born underweight.

Fletcher stressed that “the humanitarian movement is independent, impartial and neutral. We believe that all civilians are equally worthy of protection.”

He said that a recent proposal by Israeli authorities regarding ways to distribute aid “does not meet the minimum bar for principled humanitarian support.” Israel has proposed taking over aid distribution in Gaza or using private companies for the distribution.

The United Kingdom joined calls for aid to be allowed into Gaza.

“The healthcare system in Gaza is near collapse,” the U.K. Foreign, Commonwealth and Development Office posted on X. “Aid supplies must be allowed in, medical workers protected, and the sick and wounded allowed to temporarily leave Gaza for treatment.”

Israeli strikes in Gaza killed more than two dozen people from Wednesday afternoon into Thursday, bringing the overall death toll since the war started to more than 52,400 people, according to the Health Ministry in Gaza. More than 2,300 of the deaths have occurred since the ceasefire collapsed on March 18, it said.

The ministry doesn't differentiate between civilians and militant deaths, but says more than half the dead have been women and children. Israel says it has killed more than 20,000 militants, without providing details on those deaths.

On Thursday afternoon, the ministry said the bodies of 18 people and 77 wounded people had arrived at hospitals in the past 24 hours.

Shurafa reported from Deir al-Balah, Gaza Strip.

Palestinians search the rubble of a house targeted by an Israeli army strike that killed at least five people in Khan Younis, in the southern Gaza Strip, on Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Palestinians search the rubble of a house targeted by an Israeli army strike that killed at least five people in Khan Younis, in the southern Gaza Strip, on Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Islam Abu Sahloul mourns the death of her sister Lamia, 32, who was killed when an Israeli army strike hit a house killing at least five members of the Abu Sahloul family, in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Islam Abu Sahloul mourns the death of her sister Lamia, 32, who was killed when an Israeli army strike hit a house killing at least five members of the Abu Sahloul family, in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

A boy looks as Palestinians search the rubble of a house targeted by an Israeli army strike that killed at least five people in Khan Younis, in the southern Gaza Strip, on Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

A boy looks as Palestinians search the rubble of a house targeted by an Israeli army strike that killed at least five people in Khan Younis, in the southern Gaza Strip, on Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Islam Abu Sahloul mourns the death of her sister Lamia, 32, who was killed when an Israeli army strike hit a house killing at least five people, in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Islam Abu Sahloul mourns the death of her sister Lamia, 32, who was killed when an Israeli army strike hit a house killing at least five people, in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

A wounded man and a child are taken into the Nasser hospital after an Israeli army strike hit a house killing at least five members of the Abu Sahloul family, in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

A wounded man and a child are taken into the Nasser hospital after an Israeli army strike hit a house killing at least five members of the Abu Sahloul family, in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Palestinian children search for belongings in a house damaged by an Israeli army strike that killed at least five people in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Palestinian children search for belongings in a house damaged by an Israeli army strike that killed at least five people in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Palestinians search the rubble of a house targeted by an Israeli army strike that killed at least five people in Khan Younis, in the southern Gaza Strip, on Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Palestinians search the rubble of a house targeted by an Israeli army strike that killed at least five people in Khan Younis, in the southern Gaza Strip, on Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Relatives mourn over the body of Osama Abu Sahloul, who was killed when an Israeli army strike hit a house in Khan Younis, in the southern Gaza Strip, killing at least five members of the Abu Sahloul family, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Relatives mourn over the body of Osama Abu Sahloul, who was killed when an Israeli army strike hit a house in Khan Younis, in the southern Gaza Strip, killing at least five members of the Abu Sahloul family, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

A wounded man sits inside an ambulance at the Nasser hospital after an Israeli army strike hit a house killing at least five members of the Abu Sahloul family, in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

A wounded man sits inside an ambulance at the Nasser hospital after an Israeli army strike hit a house killing at least five members of the Abu Sahloul family, in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Palestinians search the rubble of a house targeted by an Israeli army strike that killed killing at least five members of the Abu Sahloul family in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Palestinians search the rubble of a house targeted by an Israeli army strike that killed killing at least five members of the Abu Sahloul family in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Palestinian women look as residents search the rubble of a house targeted by an Israeli army strike that killed killing at least five members of the Abu Sahloul family in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Palestinian women look as residents search the rubble of a house targeted by an Israeli army strike that killed killing at least five members of the Abu Sahloul family in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

A child and a woman look as Palestinians search the rubble of a house targeted by an Israeli army strike that killed killing at least five members of the Abu Sahloul family in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

A child and a woman look as Palestinians search the rubble of a house targeted by an Israeli army strike that killed killing at least five members of the Abu Sahloul family in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Islam Abu Sahloul, center, mourns the death of her sister Lamia, 32, who was killed when an Israeli army strike hit a house killing at least five people, in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

Islam Abu Sahloul, center, mourns the death of her sister Lamia, 32, who was killed when an Israeli army strike hit a house killing at least five people, in Khan Younis, in the southern Gaza Strip, Thursday, May 1, 2025. (AP Photo/Abdel Kareem Hana)

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