Trump’s Very Stable Genius Coin

On the eve of his second inauguration, Donald Trump did something no U.S. president had ever done: He launched a meme coin. The cryptocurrency — whose value hinges more on hype than utility — surged to an all-time high of $75.35 a token. The next day, First Lady Melania Trump dropped her own meme coin, debuting at about $13 a share. 

Both coins have since tumbled, but on Wednesday Trump’s token briefly bumped up again to $15.47 before dipping. The latest surge came after the coin’s official website announced that 220 top meme coin holders will be invited to a gala dinner with the president in May — black tie optional. 

These tokens, that are not tied to any real world assets, have proven lucrative for Trump and his family. Last month, the Financial Times estimated Trump made upwards of $350 million from the project. While small traders have lost big, the Trump Organization and its affiliates — controlling 80 percent of the token supply — have made hundreds of millions in just trading fees.

From meme coins, which usually refer to a fun internet or pop culture meme, and stablecoins, whose values are pegged to a real-world asset, to a new government-backed bitcoin reserve, Trump, once a crypto skeptic, is now the industry’s most powerful advocate.

“ He went to a big bitcoin conference in Nashville last July. That’s where he declared he would make the U.S. the crypto capital of the planet,” says Intercept reporter Matt Sledge. “And the crypto industry started showering money on him. They saw somebody who would be friendly to their industry.”

This week on The Intercept Briefing, Sledge, who covers crypto’s political reach, discusses how investing in the president has paid off for the industry and for the Trump family.

“So far in Trump’s presidency, things have gone great for the crypto industry. Even as the rest of the economy is on pretty perilous footing, a bunch of crypto companies have seen the SEC and other regulatory agencies drop investigations or lawsuits. Trump has created a ‘bitcoin reserve,’ and in general, regulators and Congress are behaving much more friendly toward the industry.”

On Sunday, a filing with the Federal Election Commission revealed that Trump received a record $239 million in donations that went toward his inauguration. According to reporting from Fortune, the crypto industry gave about $18 million alone. 

The meme coins are just one aspect of the president and his family’s growing crypto empire — an empire that includes Trump’s sons, Eric and Don Jr., taking a stake in a new bitcoin mining firm called American Bitcoin. Trump Media is also partnering with Crypto.com and a newly formed investment firm to offer financial products, including crypto to retail investors. 

“Just a few weeks ago, the SEC dropped an investigation into Crypto.com,” Sledge points out. “This is something that would’ve been really astonishing under any other president, regardless of their party. You go from a company being under investigation just a few weeks ago to it having this partnership with the president’s publicly traded company.” 

For more on how Trump is reshaping the crypto landscape and what it means for the rest of us, listen to the full conversation of The Intercept Briefing on Apple Podcasts, Spotify, or wherever you listen.

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