NAIROBI (CoinChapter.com) — Democratic Representative Maxine Waters has criticized former President Donald Trump’s official memecoin, calling it a glaring example of the crypto industry’s pitfalls. Launched on Jan. 17, the token, dubbed “Trump (TRUMP),” has faced accusations of lacking transparency and undermining the sector’s credibility.
Waters Accuses Trump of Exploiting Crypto
Rep. Waters, the leading Democrat on the U.S. House Financial Services Committee, labeled the TRUMP token a “rug pull scheme” in a statement issued Jan. 20. She alleged the project’s structure leaves investors vulnerable while shielding the token’s creators from legal accountability.
“The coin’s terms and conditions block buyers from bringing class-action lawsuits even if they are swindled,” said Waters. She also raised concerns about the anonymity of transactions linked to the token, suggesting it could serve as a vehicle for bypassing anti-corruption and national security laws.
Waters argued that such initiatives tarnish the reputation of the cryptocurrency industry, stating:
“These actions by President Trump will further taint the crypto industry, which has long fought for legitimacy and a level playing field with other financial institutions.”
TRUMP Coin Faces Market and Public Backlash
Since its release, the TRUMP token has drawn widespread criticism, including from staunch Trump supporters. The memecoin’s price has plunged by over 40% in the last 24 hours, dropping from $67.87 to $38.54. Critics have accused Trump of exploiting his political standing for personal financial gain, a claim echoed in Waters’ remarks.
The launch coincided with former First Lady Melania Trump introducing her branded memecoin, fueling speculation about the pair’s motives. Waters noted that Trump’s memecoin could enable anonymous transfers to his inner circle, raising red flags for regulators.
Crypto Silence on Inauguration Day
Despite the token’s release and mounting public criticism, Trump has yet to address the subject publicly. His inauguration speech on Jan. 20 did not mention cryptocurrencies or blockchain, and the administration’s early policy priorities appear devoid of focus on digital assets.
Trump’s team buys Bitcoin during speech. Source: XThis silence stands in stark contrast to Trump’s earlier pledges, including a proposed executive order to establish a strategic Bitcoin reserve and a potential commutation of Silk Road founder Ross Ulbricht’s life sentence. Both initiatives remain unfulfilled.
At press time, the Trump administration had not issued an official response to Maxine Waters’ allegations or provided further clarification regarding the memecoin’s intended purpose.
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