The official Trump Coin (TRUMP) and the official Melania Coin (MELANIA) have shaken up the cryptocurrency market ahead of the presidential inauguration. Is TRUMP an SEC target?
The cryptocurrency market is busy and frenetic, and this is especially true since Donald Trump won the presidential election in November.
Bitcoin, Solana and meme coins have risen to record highs, with the world’s most valuable cryptocurrencies making headlines after topping $100,000 for the first time.
The next 4 years of American politics will be the greatest clown show ever.
Crime is now legal. https://t.co/0mR4848eTA pic.twitter.com/xf9YlVKbqe
— VikingXBT (@VikingXBT) January 20, 2025
Trump Meme Coins The dawn of traditional cryptocurrencies
After two months, the president-elect did something no one expected. On Friday, January 18, his team launched TRUMP, the “Official Donald Trump” meme coin.
Although the token debuted after market hours, it exploded over the weekend, with prices rising above $50 and reaching as high as $74 on some exchanges.
At his peak, TRUMP had a market capitalization of over $14 billion and became one of the most valuable meme coins.
(Source)
Even though prices dropped earlier today, coinciding with the incoming First Lady’s launch of the MELANIA meme coin, the TRUMP token remains bullish.
Melania’s official meme is live!
You can buy $MELANIA now. https://t.co/8FXvlMBhVf
FUAfBo2jgks6gB4Z4LfZkqSZgzNucisEHqnNebaRxM1P pic.twitter.com/t2vYiahRn6
— MELANIA TRUMP (@MELANIATRUMP) January 19, 2025
As Trump prepares to take office today, January 20, as the 47th president of the United States, it’s clear why his meme coin could see continued momentum in the first quarter of 2025.
While the cryptocurrency market is in turmoil, why did Trump launch the token on Friday, January 18, less than 72 hours before his inauguration?
Why the TRUMP and MELANIA tokens had to be launched
Analysts have proposed several reasons for this strategic timing. While critics suggest Trump is motivated by personal enrichment, others point to legal constraints.
At the top of the list is the Emoluments Clause, which bars a sitting president from receiving profits or benefits from foreign governments.
This law also prevents the president from using the office for personal gain without congressional approval.
In light of this, the emoluments clause is evidently designed to prevent conflicts of interest and legal disputes arising from such situations.
The Trumps have strategically avoided accusations of profiting from the presidency by launching TRUMP and MELANIA in quick succession before taking office.
Both coins have already risen more than 10x, and issuing addresses, likely directly controlled by Trump’s team, still hold a large chunk of the total supply.
If these tokens had been issued after January 20, Trump and the First Lady would likely have violated the Emoluments Clause, giving Democrats grounds to initiate impeachment proceedings.
What is the future of the official Trump coin and the official Melania coin?
Although the TRUMP and MELANIA meme coins experience initial success, the US Securities and Exchange Commission (SEC) is monitoring them closely.
It remains uncertain whether these tokens will be classified as securities or utility tokens, similar to Bitcoin.
Analysts are now watching whether TRUMP will resume his uptrend, potentially breaking the all-time highs reached over the weekend.
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The post Here’s Why Donald Trump Had to Launch His Own Meme Coin Before Taking Office appeared first on 99Bitcoins.