Donald Trump and his family launched a new crypto currency called Trump, days before he took office. This Token, which started to be traded immediately after the launch, gained value and theoretically gave billions of dollars to the Trump family. However, this Coin brought serious discussions both ethical and economically.
What is Mececoin and what does Trump offer?
Memecoin is usually a crypto currency that is usually based on a slogan, visual or trend, without a practical use. Although popular examples such as Dogecoin were initially created for entertainment purposes, it is often associated with frauds called “Rug Pull, which results in great losses for investors.
The fine details on Trump’s official website clearly state that Coin does not have the purpose of investment and does not offer any legal assurance. However, this did not reduce the enthusiasm of investors and token quickly sat at the center of the speculation.
Ethical problems and conflicting interests
Trump is criticized for potential conflicts of interest and ethical problems. The Trump family has 80 %of these tokens. This carries risks such as market manipulation and non -protection of investors. Another important question is whether the financial regulators appointed by the US President can act against the president’s interests.
This project may also open a door to the influence of the US president in anonymous ways of foreign governments. For example, it is possible for a foreign leader who buys Trump to establish an indirect economic connection with the president. This is seen as a serious threat in terms of constitutional regulations and ethical rules.
Trump and crypto arrangements
Trump’s crypto policies aim to support the sector with lighter arrangements. However, the steps taken by the Congress on this issue, the competence of regulatory frameworks and the accountability of the sector raises serious questions.
The fact that the US administration makes a friendly approach to the crypto market increases doubts about how effective these regulations will be. For example, names such as Paul Atkins, one of Trump’s proposal for the SEC Presidency, are criticized for their close ties with the sector.
Painful experiences for investors
Trump investors have serious losses. In Reddit, a user said that he had lost a large part of the $ 700,000 he has invested and shared his statement, “This is terrible, my life is over,” he said. Such events once again reveal how critical the regulatory deficiencies to protect investors are.
Trump Memecoin went beyond being a tool for the financial gains of the Trump family and brought up the ethical and regulation problems in the crypto industry. This initiative pose a potential threat to both investors and democratic processes. If the sector does not learn from such projects, it will be inevitable that similar risks will have larger effects in the future.
