Be a "family" with Trump? The "Sky-high Social Game" behind TRUMP Coin

Author: David Yaffe-Bellany, Matthew Goldstein, Eric Lipton

Organized: BitpushNews

The Trump family will provide private dinners to top investors in its meme currency TRUMP, an invitation to drive TRUMP to soar in the short term, becoming its family’s latest attempt to make profits from the crypto industry.

The dazzling online announcement calls it "the world's most exclusive invitation" - a rare opportunity to have a "private dinner" with Trump at his Virginia member golf club and then visit the White House.

Each seat will be reserved for investors in the top 220 positions in TRUMP coins (a cryptocurrency launched by the Trump family on the eve of their inauguration).

On Wednesday local time, the website promoting the so-called "President Meme Coin" announced that buyers with the largest holdings will get the opportunity to meet with the president. This move essentially uses White House access as a bargaining chip in exchange for people's investment in Trump's crypto projects.

"Go for dinner with President Trump and the TRUMP community!" The invitation reads, "Let the President know how many TRUMP communities you hold! Let the President know how many TRUMP coins you hold!"

For months, Trump's move to crypto has sparked a rare moral controversy in the history of the U.S. president. While selling digital currencies to the public, Trump has appointed regulatory officials to cut crypto enforcement and called for legislation to boost the industry's development in the United States.

As the news of the dinner fermented on social media, the price of the meme coin soared by more than 60%, and investors are using the news to make profits.

"It's incredible," said Cory Frell, who was in charge of SEC's crypto policy during the Biden administration. "They put the 'power transaction' on the table."

The holding of a large amount of the token by a business entity associated with Trump means that Trump himself can make direct profits from each price increase (at least on the books). Trump and his business partners can also withdraw fees from token trading, and the initial revenue of the online launch in January alone was close to $100 million.

Victoria Hanemann, a law professor at Creighton University, pointed out that such an operation is worrying that Trump and his business empire "may use the presidency to make a profit."

The Trump family’s crypto businesses may benefit from industry-backed crypto legislation that Congress is pushing, but they also complicate the political landscape around the issue. Trump’s relationship with cryptocurrencies has angered pro-profession Democrats because legislation requires their support to be passed in the Senate. House Financial Services Committee Chairman Frank Hill (R.A.), has been pushing for years to create new rules that benefit cryptocurrencies. He said last month that the family's cryptocurrency business made his work in Congress "more complicated".

Earlier this year, the US SEC issued official guidelines saying that meme coins based on online jokes or celebrity images will not be regulated by the agency. Crypto skeptics criticize this policy that may fuel fraud by meme promoters.

As president, Trump enjoys extensive immunity in conflict of interest regulations, which he himself has mentioned in the past. White House representatives did not immediately respond to requests for comment. Eric Trump, who assisted in the operation of TRUMP coin sponsor, declined to comment.

Trump, who was once skeptical of crypto, changed his stance during last year's campaign, when crypto companies were spending tens of millions of dollars to influence the 2024 election.

Last fall, Trump and his sons Donald Jr., Eric and Barron announced the establishment of "World Liberty Financial" to issue a digital currency called WLFI. According to the company, 550 million of the tokens have been sold.

Shortly thereafter, Trump's social media company Trump Media & Technology Group began providing crypto financial products to retail investors and announced a partnership with trading platform Crypto.com.

But the most popular one is Trump's meme coin project.

Three days before the inauguration, Trump announced the sale of the token on his social platform Truth Social. TRUMP sales surged instantly, making the president-elect a crypto billionaire on the books.

Meme coins usually rise and fall, and TRUMP prices quickly collapse. The cumulative losses of holders exceeded US$2 billion.

The dinner announcement is clearly intended to reignite market enthusiasm.

When TRUMP was released in January, a large number of tokens were allocated to project supporters. But issuance rules restrict these insiders from allowing the sell-off until last week, raising concerns about the further decline in the currency price of its sell-off.

However, a few days before the invitation was released, the coin price had gradually rebounded, and it soared rapidly after the announcement.

TRUMP's official website has set up a ranking of big coin holders, which is essentially an online game that allows buyers to track rankings in real time. The website states that from April 23 to May 12, "TRUMP's official website has set up a ranking of big coin holders, which is essentially an online game that allows buyers to track rankings in real time. The website states that from April 23 to May 12, the top 220 TRUMP's average holdings will be invited to the banquet. The top 25 buyers can also attend the presidential reception and the White House VIP tour before the dinner (currently, No. 25 on the list holds about 4,000 tokens worth about 54,000 US dollars).

"The more $TRUMP is held — and the longer you hold it — the higher your rankings are,” the website stressed.

The website said the dinner with Trump is scheduled to be held at Trump National Golf Club on May 22, calling it "the most exclusive invitation once in a lifetime."

The White House did not immediately respond to a request for comment on the moral impact of the dinner.