President Donald Trump endorsed the Official Trump (TRUMP) token on social media Sunday morning, directly promoting the Solana-based meme coin in which the President’s affiliated companies hold an 80% ownership stake.
"I LOVE $TRUMP—SO COOL!!! The Greatest of them all!!!!!!!!!!!!!!!" Trump posted on TruthSocial at 10:33 AM ET, coinciding with a price surge that saw the token briefly top $12.25 before experiencing significant volatility.
The asset is up 7.7% on the day to $11.67, CoinGecko data shows. Still, it remains down 84% from its all-time high of $73.4 during the time it was launched January.
The price action is "a sign that the market is no longer excitable about the Trump token," Luis Buenaventura, head of crypto at GCash, told Decrypt. This is still the case despite investors being aware "of its potential for small profits in short timescales."
While the token's website claims it is "not intended to be an investment opportunity," its value proposition appears inextricably linked to Trump's personal brand and ongoing promotion.
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High-risk constitutional concerns
The unprecedented development of a sitting U.S. president directly promoting a crypto asset benefiting his business interests has drawn scrutiny from ethics watchdogs and industry observers.
Andrew Rossow, digital media attorney and CEO of AR Media, a global brand impact consulting firm, told Decrypt that these activities have “unfortunately set a dangerous precedent for leveraging public office for personal financial gain."
Rossow cites three high-risk constitutional concerns.
First of these is the Emoluments Clauses (Article 1, Sec. 9), which prohibit a sitting president from receiving financial benefits “from domestic entities or foreign governments without congressional approval,” Rossow explained.
Because of its ownership structure, the TRUMP token allows “foreign actors to purchase tokens anonymously, potentially violating these clauses by enabling indirect financial gains or undue foreign influence” over U.S. policy.
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Rossow further cites the Separation of Powers (Article II, Section 3), which requires the president to “faithfully execute laws.”
Trump’s endorsement of a financial product tied to his personal wealth “undermines regulatory agencies such as the SEC and CFTC, eroding trust in impartial governance,” Rossow told Decrypt.
Moreover, under provisions for the Equal Protection and Due Process in the Fifth Amendment, Rossow argues that preferential treatment for the tokens over others could “create an uneven playing field in the crypto market, disadvantaging competitors.”
CIC Digital LLC, listed in Trump's financial disclosures as his company, and Fight Fight Fight LLC collectively control the vast majority of the token's supply, according to the project's official documentation.
These entities stand to benefit financially from increased trading activity and price appreciation.
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Federal ethics laws “prohibit public officials from engaging in activities that create conflicts between their public duties and private interests,” Rossow explained. Because of the affiliated entities’ ownership of 80% of the token supply, Trump’s involvement “directly conflicts with his role as president” and “undermines public trust in impartial governance.”
Earlier this month, World Liberty Financial, a decentralized finance project associated with the Trump family and principals of DT Marks DEFI LLC, profited roughly $390 million from its second round of token sales.
The TRUMP token's launch follows the president's campaign pledges to make the U.S. a leader in crypto, including initiatives to establish a strategic Bitcoin reserve and an end to the Federal Reserve's independence via select crypto policy.
Representatives for President Trump did not immediately respond to Decrypt’s request for comment.
Edited by Sebastian Sinclair
