Trump Meme Coin Takes Shine Off Crypto

Industry players worry it will tarnish the credibility they have cultivated

- VICKY GE HUANG AND CAITLIN OSTROFF

The crypto industry eagerly awaited Donald Trump's return to the White House. Now, it's reeling after the president and first lady launched a pair of meme coins.

$TRUMP and Dubbed $MELANIA, the tokens have no economic purpose-their value largely is based on the popularity of internet memes. The market cap of the president's coin has soared to $8.4 billion since Friday night's launch, while the first lady's token is worth about $800 million, according to CoinMarketCap.

By selling coins known for their speculative nature and extreme volatility, the president has undermined the credibility that the industry has worked hard to build in recent years, some crypto executives and investors say.

They also point to the brazen conflict of interest: Trump benefits directly from the sale of the tokens while setting the policy that affects how markets are valued and regulated.

Spokespeople for the Trump Organization and the websites associated with the tokens didn't respond to requests for comment.

President Trump commented on his meme coin for the first time Tuesday when asked by a reporter about whether he plans to continue selling products that benefit him personally. "Well I don't know if it benefited. I don't know where it is. I don't know much about it other than I launched it," he said.

Even the most ardent Trump supporters reached a breaking point when the $MELANIA token launched less than 48 hours after the rollout of her husband's coin.

Ryan Selkis, the former chief executive of crypto research firm Messari and a vocal supporter of Trump, urged the president to fire the adviser who recommended the launch of the second coin.