Trump coin sparks outrage as industry grapples with pump-and-dump fear

WASHINGTON, D.C. – Cryptocurrency politics and digital finance collide, as Trump’s launch of the digital currency sparks volatile market reactions, polarizing industry watchers and spurring regulatory caution.

How the story began: Trump engaged major Bitcoin miners about the future of cryptocurrencies in the United States

Top Bitcoin mining companies, including Riot Platforms, Clean Spark, and Core Scientific, It was held Closed meeting with Trump at Mar-a-Lago. This historic gathering appears to indicate the former president’s intention to play an active role in shaping the US digital asset industry. David Bailey, CEO of Bitcoin Magazine appeared As one of the industry’s influential spokespersons while interacting with the Trump team.

Presentation by Matthew Schultz, CEO and Director of CleanSpark CNBC Excerpts from the secret meeting:

“He wants to keep all the rest of Bitcoin mining in the US and outside of China. For him to legitimately get involved in the Bitcoin industry, and understand how mining works, was really cool.”

Marathon’s Browder echoed this sentiment, praising Trump’s clear understanding of the complex nuances of cryptocurrencies:

“He really knew his stuff.”

Bonds grow between Bitcoin and Trump

A few weeks later, at the annual Bitcoin conference, Trump took center stage. captivating An audience of passionate Bitcoin enthusiasts with bombastic and passionate speech.

With signature phrases like “fire.” Gensler“, a direct hit that may have led to the resignation of SEC Chairman Gary Gensler, and It helps “We will have regulations, but from now on the rules will be written by people who love your industry, not people who hate it.” Trump’s comments were the most likely force that pushed the cryptocurrency to new heights.

Since that exciting headline, Bitcoin has soared to an all-time high of over $106,000, and impressively held on to over $90,000 throughout 2025.

Emphasizing his vision for the nation, Trump Announce It will turn the United States into the “crypto capital of the planet and the Bitcoin superpower of the world.” As voters respond, pro-crypto candidates make significant inroads in the November 2024 elections. POLITICO male“The return of President-elect Donald Trump and a potential GOP Congress presents a dream-come-true scenario for cryptocurrency executives and investors who have spent more than $130 million on the 2024 election.”

In a more visible development, cryptocurrency political action committees like Fairshake, now Armed with a whopping $78 million for the 2026 midterm elections, this suggests that crypto’s influence in the political arena is here to stay.

Crypto Ball: Trump Fires Trump, Sparks $1 Billion Madness

The culmination of this complex dance between politics and digital finance unfolded on January 17, 2025, at the Washington, D.C., inauguration ceremony.Crypto ball“Hosted by industry powerhouses such as Bitcoin Magazine, Stand With Crypto, Kraken, Anchorage Digital, and Exodus, the event was poised to celebrate a new era of cryptocurrency innovation and policy.

At exactly 8 p.m., Trump set social media on fire with a bold speech advertisement On Truth Social he mentioned that he launched his own memecoin, which he called $TRUMP.

The market reacted immediately. And in the hours that followed its launch. $Trump The coin reached a market cap of $13.6 billion, with its fully diluted value rising to approximately $67.6 billion. Then, at 3:05 PM ET on January 19, 2025, less than 48 hours after launch, the coin began a sharp decline.

Divided industry

For some, Trump’s entry into memes is a triumph, symbolizing innovation and unconventional leadership in a space ripe for mass adoption. “We are all very proud of what we continue to accomplish in the cryptocurrency space. $TRUMP is currently the most popular digital meme on Earth, and I truly believe that World Liberty Fi. will revolutionize DeFi/Cefi and will be the future of finance. We are just getting started” Announce Don Junior on X.

However, not everyone shares in this abundance. British Bitcoin investor and podcast host Peter McCormack, founder What Bitcoin didsharply criticize Movement:

“Trump’s currency is embarrassing. It’s the opposite of what you voted for.”

Neeraj K. Agrawal, communications director at the digital asset research center Coin Center, Notice,

“Is there anyone else filled with dread?”

Nick Carter, an outspoken Trump supporter and cryptocurrency enthusiast, posted on X:

Amid growing concerns about pump-and-dump schemes, an ongoing problem in the cryptocurrency world exacerbated by the ease of token creation, industry regulators and participants are calling for vigilance. Sequential analysis He stressed the potential risks of such schemes, stressing the need for strong cooperation between the public and private sectors to build a safer ecosystem.

SEC Chairman Gary Gensler resignationeffective January 20, 2025, further complicating the landscape, leaving the industry at a crossroads between regulatory oversight and unbridled innovation.

The way forward

As the cryptocurrency industry grapples with the dual forces of political ambition and digital innovation, the ripple effects of Trump’s maneuvers are poised to shape the future of both American governance and global finance. With the formidable combination of political capital, financial power, and the ever-present excitement of meme culture, the road ahead promises to be unpredictable.