President Donald Trump endorsed the official Trump (Trump)-token on social media on Sunday morning, to promote the Solana-based meme-Munt in which the affiliated companies of the President possess a 80% interest.
“I love $ Trump – so cool !!! the best of all !!!!!!!!!!!!!!!” “Trump posted On Truthsosocial at 10:33 am et ale a price dump that saw the token short, above $ 12.25 before he experienced considerable volatility.
The active has risen to $ 11.67 on the day of 7.7%, according to Coingecko data. Yet it continues to fall by 84% compared to its highest peak of $ 73.4 during the time it was launched January.
The price action is “a sign that the market is no longer exciting about the Trump -token,” Luis Buenaventura, head of Crypto at Gcash, said Decrypt. This is still the case, despite the fact that investors are aware of the potential for small profit in short time scales. “
Although the Token website claims that it is “not intended as an investment option”, his value proposition appears inextricably linked to the personal brand of Trump and continuous promotion.
Constitutional concerns with a high risk
The unprecedented development of a sitting US president who directly promotes a crypto -active that benefits his business interests, has taken over control from Ethical watchdogs and industrial observers.
Andrew Rossow, digital media lawyer and CEO of AR Media, a global consultancy for brand impact, said Decrypt That these activities “unfortunately have established a dangerous precedent for the use of a public office for personal financial gain.”
Rossow quotes three high-risk constitutional concerns.
The first is the Emolumenten Clauses (Article 1, sec. 9), who forbids a sitting president to receive financial benefits “of domestic entities or foreign governments without the approval of the congress,” Rossow explained.
Due to the ownership structure, the Trump -token ‘foreign actors enables anonymous to buy tokens, making these clauses possible by indirect financial profit or unnecessary foreign influence’ to enable US policy.
Rossow also quotes the separation of powers (Article II, section 3), whereby the president “performs faithful laws.”
Trump’s approval of a financial product that is linked to his personal wealth “undermines regulatory authorities such as the SEC and CFTC, confidence in impartial board,” Rossow said Decrypt.
In addition, with provisions for the equal protection and the appropriate process in the fifth amendment, Rossow argues that preferential treatment for the tokens above others “could create an uneven playing field in the cryptomarkt that emphasizes competitors.”
CIC Digital LLC, listed in Trump’s Financial disclosure If his company, and Fight Fight Fight LLC collective control of the vast majority of the offer of token, according to the official project officer documentation.
These entities will benefit financially from increased trading activities and price valuation.
Federal ethical laws “forbid officials to enter into activities that create conflicts between their public duties and private interests,” Rossow explained. Due to the ownership of the affiliated entities of 80% of the token stock, Trump’s involvement “directly contrary to his role as president” and the public undermines trust in impartial board. “
Earlier this month, World Liberty Financial, a decentralized financing project associated with the Trump family and clients of DT Marks Defi LLC, benefited around $ 390 million From the second round of token sale.
The launch of the Trump -Toks follows the president’s campaign to make the US a leader in crypto, including initiatives To one Strategic Bitcoin -Reserve and one ending the federal reserve independence Via Select Crypto Policy.
Representatives of President Trump did not respond immediately Decrypts Request for comments.
Published by Sebastian Sinclair
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