The TRUMP Coin, launched on January 17, witnessed a notable price increase, soaring from $7 to a peak of $75 within 24 hours before stabilizing at $38. Shortly after TRUMP’s introduction, the MELANIA coin, supported by First Lady Melania Trump, entered the market, beginning at $7 and dropping below $4 after a brief rise to $14.

Despite creating overnight millionaires, these coins have faced intense scrutiny from industry insiders. Critics, including members of the U.S. Congress, raised alarms regarding potential conflicts of interest and the capacity for influential individuals to gain favor with the President through these tokens.

Anthony Scaramucci, a prominent crypto advocate, expressed his concerns on social media, stating: “The most perilous aspect of Trump coin for the nation is what follows. Now, anyone globally can effectively deposit money into the bank account of the President of the United States with just a few clicks.”

The memecoin initiative has attracted widespread criticism, with developers arguing it perpetuates a negative perception of the cryptocurrency sector. Gabor Gurbacs criticized Trump’s advisory team on social media, while Nic Carter challenged the rationale behind the launch.

Specific apprehensions surfaced about the coin’s distribution, with 80% of TRUMP coins held by a few blockchain addresses managed by CNC Digital. This distribution pattern poses risks commonly associated with “pump-and-dump” schemes.

Nicolas Vaiman, CEO of a blockchain analytics firm, indicated that the current distribution of TRUMP aligns with the project’s official guidelines, suggesting no immediate plans for a sell-off. In contrast, only 11% of MELANIA tokens are accessible to the public, raising concerns about transparency and accountability in the project’s management.

For full details on the ongoing controversy surrounding these tokens, see CoinDesk’s original article.