Due to these concerns, both TRUMP and MELANIA tokens experienced large price fluctuations after their launch. Binance’s BNB Chain is making the best out of the situation, and launched a new guide for creating meme coins, inspired by TRUMP’s success. However, legal experts are very concerned about potential lawsuits related to the Trump meme coins. Ethereum co-founder Vitalik Buterin also criticized political tokens, and called them tools for bribery and threats to democratic integrity.
Controversy Deepens Over Trump Meme Coins
Senator Elizabeth Warren called on US financial regulators and the government ethics office to investigate the ethical and legal concerns surrounding the launch of two cryptocurrency tokens by former President Donald Trump and First Lady Melania Trump. In a letter dated Jan. 22, Warren shared that she is extremely alarmed about the launch of the Official Trump (TRUMP) and Melania Meme (MELANIA) tokens, and even sees them as mechanisms for personal enrichment and tools for speculative financial activities tied to Trump’s political career. The senator also raised concerns about potential foreign influence as people from hostile nations could covertly purchase these tokens and undermine US political integrity.
The TRUMP token was launched just days before Trump assumed office on Jan. 20, and quickly reached an all-time high of $73 before losing over 50% of its value. Melania Trump introduced her own token on Jan. 19, which peaked at $13 before falling .
TRUMP’s price action since its launch (Source: CoinmarketCap)
Warren pointed out that the Trump Organization has control of 80% of the TRUMP tokens, which leaves retail investors to bear the brunt of the asset’s volatility. She also mentioned a potential conflict of interest by pointing out that, as president, Trump is responsible for appointing leaders of agencies tasked with regulating the cryptocurrency sector.
The letter was addressed to several key officials, including Office of Government Ethics Director David Huitema and acting heads of the Securities and Exchange Commission (SEC), Treasury Department, and Commodity Futures Trading Commission (CFTC). Warren and Representative Jake Auchincloss requested responses by Feb. 4 with regards to the ethical rules governing the Trumps’ holdings, regulatory measures to address foreign purchases, the legal status of meme coins, and protections for retail investors.
Criticism of the tokens are not just limited to lawmakers. Representative Maxine Waters labeled the Trump meme coin as “the worst of crypto,” while ARK Invest CEO Cathy Wood stated that she would not invest in tokens without utility as she prefers to focus on more established cryptocurrencies. Legal experts now expect a wave of lawsuits related to the Trump family’s cryptocurrency ventures, which could make the controversy surrounding the tokens’ launch even worse.
Trump Token Inspires BNB Chain's Meme Coin Push
BNB Chain, which is a layer-1 blockchain that was developed by Binance, launched a seven-step guide to simplify the process of creating meme coins. The announcement was made by Binance founder Changpeng "CZ" Zhao on Jan. 24.
According to CZ, the guide provides detailed steps and strategies to help people and businesses create and deploy meme coins on the BNB Chain. According to a BNB Chain spokesperson, the initiative caters to a wide audience, including Web3 developers, business owners with no prior blockchain experience, and even public figures like political leaders or celebrities looking for engagement through meme coins.
Zhao previously posted on social media about his disapproval of meme coins, but seems to have changed his stance due to citing the success of the Official Trump (TRUMP) token. The new guide is designed to lower technical barriers, with support from tools like Four.Meme and Pinksale. While launching meme coins on the BNB Chain is permissionless, the ecosystem emphasizes smart contract security and encourages thorough due diligence, including evaluating project vision, tokenomics, and long-term plans before investing.
The meme coin creation guide generated positive attention from the crypto community for far, and investors seem eager to explore the new opportunities. Applicants interested in launching their own meme coins are advised to submit a form and await a decision.
On the other hand, some legal experts warn that meme coins, including those associated with the Trump family, could face litigation. However, these tokens are challenging to regulate as they are not classified as securities and lack ties to functional projects.
Warren Calls out Trump and Musk’s DOGE
Senator Warren also recently had a lot to say about Trump’s DOGE department. In fact, she wrote an open letter to Department of Government Efficiency (DOGE) Chair Elon Musk, proposing measures to reduce wasteful federal spending.
In the letter dated Jan. 23, Warren recommended fully funding the Internal Revenue Service (IRS), closing the carried interest loophole, and implementing a capital gains tax on estates. These proposals primarily target wealthy individuals, a group Warren mentioned multiple times in her call for cutting waste and abuse in the federal tax code.
Warren is especially concerned about the DOGE committee, and accused its leadership of failing to mitigate conflicts of interest and adhere to ethical standards. She also criticized policies that she believes led to reduced government revenues due to the estate tax exemptions introduced by Presidents George W. Bush and Donald Trump.
According to Warren, these changes lowered federal estate tax revenue by a lot, which could have been up to nine times higher in 2019 without the exemptions. She argued that eliminating the stepped-up basis for assets transferred at death could save over $60 billion annually.
Warren also advocated for fully funding the IRS, and believes it will help the government catch wealthy tax evaders, improve taxpayer services, and generate a 12:1 return on investment. However, the proposal faces challenges under the current administration. President Trump, on his first day in office, already issued a hiring freeze across government agencies. This could signal some resistance to increased funding for federal departments like the IRS.
Vitalik Buterin Calls Political Coins a Tool for Bribery
Vitalik Buterin, co-founder of Ethereum, is also not very happy with crypto's involvement in politics. He is especially unhappy about the rise of “political coins” and their potential consequences.
In a Jan. 23 post on X, Buterin warned that the regulatory landscape for digital assets shifted as influential figures now support the creation of tokens for virtually any purpose. While he did not directly name US President Donald Trump or his recently launched TRUMP token, Buterin suggested that these projects lack the potential to create any meaningful wealth.
Buterin criticized large-scale political tokens as vehicles for political bribery, including from foreign nations, which he argued crossed ethical boundaries. These tokens go beyond being a source of entertainment for voluntary participants and pose many serious risks to democratic processes.
His latest comments are very similar to his earlier warnings in a July 2024 blog post, where he urged voters to evaluate the core values of political candidates claiming to be “pro-crypto” rather than taking their support at face value. At the time, Buterin also warned people against aligning with authoritarian regimes that claimed to be crypto-friendly, though he did not mention any specific elections or candidates.
