The launch of Donald Trump and Melania Trump’s memecoins has sparked backlash from crypto executives, many of whom had hoped the incoming U.S. administration would take the digital-asset sector more seriously. The former president introduced the “Trump” token on Friday, followed by the release of his wife Melania’s “Melania” coin on Sunday. At one point, the market value of Trump’s memecoin soared to $15 billion, only to briefly drop below $8 billion as Melania’s token garnered attention, according to CoinMarketCap data.
Memecoins, often seen as joke currencies like Dogecoin, are infamous for their volatility and lack of intrinsic value. The sector remains highly divisive, attracting criticism from those who view it as frivolous and unworthy of serious investment. These coins often rely heavily on social media trends, which can dissipate just as quickly as they emerge.
Rob Hadick, general partner at crypto-focused venture capital firm Dragonfly Capital, criticized the memecoin launches, stating, “Now clearly a blight that we will have to work to put behind us as builders,” signaling the concern that such launches could tarnish the credibility of the sector.
As Trump’s inauguration looms, the broader crypto community is more focused on the anticipated steps to foster industry growth under his leadership, such as a potential executive order elevating crypto to a national priority. Balaji Srinivasan, angel investor and former CTO of Coinbase, expressed skepticism about memecoins, labeling them a “zero-sum lottery” where investors are bound to lose as prices inevitably crash.
Anthony Scaramucci, founder of SkyBridge Capital and former communications director under Trump, also weighed in, noting that Melania’s coin launch led to a sharp decline in the value of Trump’s coin. Scaramucci, who was briefly a part of Trump’s team before becoming a vocal critic, commented on the damage to the Trump coin’s value.
Gabor Gurbacs, former director of digital-asset strategy at VanEck, also weighed in, stating that the memecoin launches have caused the U.S. presidency and the Trump family significant loss of credibility. He suggested that the full consequences of the launches were yet to be realized and called for Trump to reconsider his crypto advisory team.
Despite criticism, Trump has increasingly embraced the crypto industry, particularly after receiving significant support in campaign donations from the sector. The former president, once skeptical of digital assets, now aims to position the U.S. as a central hub for the global crypto market and has even supported the idea of a national Bitcoin stockpile.
In addition to his memecoin ventures, Trump has explored nonfungible tokens (NFTs), launching collections of digital collectibles depicting him in various poses and costumes. Trump, along with his sons, has also endorsed the DeFi project World Liberty Financial, although details about the initiative remain limited.
The memecoin debacle is being seen as a surprising twist even by those within the crypto space. Caroline Mauron, co-founder of Orbit Markets, described the situation as “wild,” adding that the industry had expected a more conventional approach from the incoming administration—though that may still be on the horizon.
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