Trump’s memecoin launch stirs criticism from crypto executives

US President Donald Trump’s entry into the memecoin market has sparked significant backlash from cryptocurrency executives who were hoping for more serious treatment of the digital-asset sector by his incoming administration. 

On January 17, the president unveiled the $Trump token, followed by his wife Melania launching her own $Melania token on January 19. The initial market value of the Trump memecoin soared to $15 billion, before briefly dropping below $8 billion, as figures from CoinMarketCap revealed, Caliber.Az reports via foreign media.

Memecoins, which are often seen as speculative and volatile assets, have been controversial in the digital-asset community. The tokens, such as Dogecoin, are typically backed by little intrinsic value, relying heavily on social media buzz that can fade just as quickly as it appears. Critics argue that they fuel perceptions of the cryptocurrency industry as frivolous, undermining its credibility with mainstream investors.

While the Trump memecoin sparked a flurry of speculation, boosting Bitcoin’s value to a fresh record on January 20, some crypto industry executives expressed concern about the long-term implications for the sector.

Rob Hadick, a general partner at crypto-focused venture capital firm Dragonfly Capital, described the Trump token as “a blight” that the industry will have to work to overcome. “It will do more harm than good for an industry trying to rebuild its reputation,” he said.

Despite the short-term surge in market capitalization, with the Trump token's value reaching just below $11 billion by 11 a.m. London time, several figures in the cryptocurrency space voiced dismay at the launches.

Gabor Gurbacs, former director of digital-asset strategy at investment provider VanEck, said the memecoins could cost Trump, the presidency, and his family "a lot of credibility." He went further in a post on X, calling for Trump to fire his crypto advisers.

The weekend’s memecoin drama was described by Caroline Mauron, co-founder of Orbit Markets, as a “wild” development that even the crypto industry had not anticipated. “I suppose a more conventional policy approach was expected — which may still be coming,” she added.

By Khagan Isayev