'Perfect bribery vehicle': Creator of major cryptocurrency rips Trump’s 'meme coin'
Just before his January 20 inauguration, President Donald Trump launched a cryptocurrency named after himself, which quickly accumulated a market cap of approximately $32 billion (Axios reported that it hit a high of more than $52 billion). One leading figure in the crypto world is now arguing this could usher in an era of corruption in the future.
The Washington Post reported Saturday that crypto traders were divided about the release of the president's "meme coin," dubbed $TRUMP. First Lady Melania Trump also launched her $MELANIA cryptocurrency ahead of the inauguration, which topped $6 billion within hours of its release. While Castle Island Ventures general partner Nic Carter voted for Trump, he told the Post he was "pretty dismayed" about the president's new cryptocurrency.
"It cheapens his embrace of the crypto industry," Carter said.
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in a post to Bluesky, Vitalik Buterin — who created the popular Ethereum cryptocurrency that's valued at more than $400 billion — said politicians that get into the crypto business are inviting criminal activity. He called "politician coins" like $TRUMP and $MELANIA "risky to democracy."
"The risk of politician coins comes from the fact that they are such a perfect bribery vehicle. If a politician issues a coin, you do not even need to send them any coins to give them money," he wrote. "Instead, you just buy and hold the coin, and this increases the value of their holdings passively."
On Thursday, Trump signed an executive order announcing his intent to curb regulation of cryptocurrency, and laying out plans for the federal government to have a national cryptocurrency reserve. Carter said that executive order in the context of him releasing his own cryptocurrency "makes it look like quid pro quo" and creates conflicts of interest.
"I recommend politicians do not go down this path," Buterin said.
READ MORE: 'Brazen grift': Trump ripped over crypto 'rugpull' scheme now valued at $32 billion
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