Eric Trump Defends $TRUMP Memecoin Amid Whale Trader Profits and Ethical Concerns

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Eric Trump recently spoke about the ongoing discussion regarding the TRUMP meme coin, a cryptocurrency introduced by President-elect Donald Trump. This comes after news broke about a large trader making around $12 million by trading the token shortly following its introduction. The launch of this coin, which has caused quite a stir, has garnered comments from financial analysts, crypto supporters, and ethics monitors.

Eric Trump’s Take on $TRUMP Memecoin

Eric Trump, son of the newly elected President Trump, spoke about the swift increase in value for the $TRUMP memecoin, referring to it as “the most popular digital joke worldwide.” Launched on Friday evening, the $TRUMP token quickly gained traction, making headlines and soaring high in the cryptocurrency sector.

As reported by CoinGecko, the market capitalization crossed the $5 billion mark by late Saturday afternoon. This was accompanied by trading volumes that surpassed $11 billion. Furthermore, the token’s price nearly doubled in just 24 hours following its launch, reaching over $27.

As a crypto investor, I’ve noticed that a significant portion (around 80%) of this memecoin’s total supply is owned by CIC Digital LLC, a company linked to Donald Trump. With an estimated $20 billion in assets on paper at the current market price, the launch of this coin has sparked concerns about potential intersections between Trump’s financial interests and his upcoming presidency.

Economist and Bitcoin critic Peter Schiff expressed his thoughts on the swift surge of the $TRUMP token. He pointed out that it took Bitcoin four years to reach a market cap of $5 billion, while $TRUMP achieved this in just one day. In a playful tone, Schiff proposed establishing a strategic reserve for the memecoin and mandating its addition to retirement accounts. However, his remarks sparked varied responses, as some dismissed the equivalence between Bitcoin and a recently introduced meme-driven cryptocurrency.

Whale Trader Profits $11.8 Million Amid Market Activity

Hours following its debut, a substantial trade involving the TRUMP memecoin took place, piquing the interest of blockchain experts. A large trader, believed to have spent $12 million on 860,895 coins at around $13.94 each, later sold these holdings for $27.67 apiece. This deal generated a profit of approximately $11.8 million, demonstrating the token’s considerable volatility in its initial trading phase.

This advancement has ignited worries about the stability of the meme coin, as well as the possibility of price manipulation. Critics contend that excessive speculation could negatively impact novice investors who enter the market during artificially high pricing levels.

Notable personalities, such as ex-White House communications director Anthony Scaramucci, voiced their disapproval towards the occasion. Scaramucci described the event as “a troubling degree of corruption,” implying that it tarnishes the overall reputation of the digital currency market.

Ethical Concerns Over Presidential Financial Ties

The launch of the $TRUMP memecoin took place at a time that has sparked ethical concerns, given it happened only a few days before Donald Trump assumed office as President. Traditionally, incoming presidents strive to disengage from business activities to prevent potential conflicts of interest. The cryptocurrency’s close association with the Trump administration has raised eyebrows among ethics monitors.

Jordan Libowitz from Citizens for Responsibility and Ethics in Washington commented on the situation, expressing, “This president-elect is starting businesses while making pledges to loosen rules in sectors where he could earn profits.” Trump has also received criticism for advocating policies favorable to cryptocurrencies during his campaign, such as suggestions to revamp crypto regulations and amass Bitcoin by the federal government.

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2025-01-19 01:08