NAIROBI (CoinChapter.com) — The release of Official Trump (TRUMP) and Official Melania (MELANIA) meme coins has ignited controversy, with potential lawsuits looming over the tokens and their creators. In the face of escalating legal scrutiny, TRUMP’s value has plummeted significantly, presently standing at $36.52, marking an 11.95% decline within the last 24 hours.
Meme Coins, Profit, and Conflicts of Interest
James Thurber, former head of the Center for Congressional and Presidential Studies, has accused Trump of capitalizing on pro-cryptocurrency policies. He labeled these actions as a “blatant conflict of interest,” contending that they serve to enrich Trump’s family while influencing the national conversation on cryptocurrencies.
Crypto analyst Ryan Lee highlighted that TRUMP has attracted a fresh wave of investors to the cryptocurrency realm. Nonetheless, more than 570,000 wallets are reported to have experienced losses, outnumbering the 330,000 that have seen gains. The fluctuating fortunes of TRUMP have raised doubts among many regarding its credibility as an investment.
Trump Meme Coins: Legal Ambiguities and Potential Lawsuits
Legal professionals such as Aaron Brogan argue that meme coins often evade regulatory oversight due to their lack of utility and absence of ties to development initiatives. Nevertheless, crypto lawyer Preston Byrne anticipates a surge in lawsuits targeting TRUMP.
Byrne suggests that the project’s terms of service—particularly the arbitration clause—could shield it from legal action by initial purchasers. However, holders of tokens in the secondary market might contend that they are not bound by these terms, potentially paving the way for legal recourse. Byrne predicts a “100% chance” of a civil lawsuit emerging within the next two months.
Josh Lawler has underscored a broader regulatory obstacle, questioning whether meme coins associated with prominent figures like Trump should be subject to stricter supervision. Devoid of explicit investment worth or practical use, TRUMP finds itself situated in a legal gray zone.
Political and Legal Ramifications
The anticipated lawsuits may yield limited practical consequences. Constitutional safeguards and Trump’s meticulously crafted legal defenses could complicate efforts to hold him accountable. Crypto lawyer Aaron Brogan remarked that although civil litigations might proceed, they are unlikely to result in enduring repercussions.
Trump’s impact on cryptocurrency regulation may further complicate endeavors to oversee politically charged tokens. Preston Byrne noted that TRUMP’s performance in the market could serve as an indicator of American political sentiment, reflecting not solely financial patterns but also societal rifts.
The legal and political outlook for Trump-associated meme coins remains uncertain. Despite the inevitability of lawsuits, their repercussions might amount to little more than political spectacle.