The Wall Street Journal editorial board issued a harsh critique of President Donald Trump on Wednesday, condemning his recent launch of Trump-branded “meme coin” cryptocurrencies. The move has been widely panned as a potential scam, even within the cryptocurrency community.
The editorial follows previous criticism from the conservative-leaning board, including its disapproval of Trump’s mass pardons for January 6 rioters. This latest controversy centers around the $TRUMP coin, a cryptocurrency branded with the former president’s name, which has turned him into a nominal “crypto billionaire.” However, the board points out significant caveats to this success.
“Crypto markets have boomed since Mr. Trump’s election in part on expectations of friendlier regulation. And so be it. Animal spirits have been rising all around. But Mr. Trump and his family have tried to cash in on the mania by minting Trump-branded coins,” wrote the board.
While Trump-themed merchandise like tumblers and pickleball paddles are relatively benign, $TRUMP coins are speculative vehicles. Initially, the token surged tenfold in value after its launch but has since lost half its value, underscoring the volatility of such assets.
Adding to the controversy, only 20% of the $TRUMP coins are available for trade, with the remaining 80% held by Trump Organization affiliates. These reserved tokens are set to unlock over a three-year period, creating potential ethical conflicts and political risks.
“All of this creates flashing-red political risks and ethical conflicts,” the board warned. They expressed concerns about who might be purchasing the tokens, suggesting scenarios where businesses or foreign officials with interests before the federal government could use these coins to curry favor with Trump.
Such transactions, especially if conducted quietly due to the lack of crypto disclosure requirements, could raise allegations of self-dealing. The Journal also highlighted the potential for lawsuits if the currency’s value crashes or if it is accused of being fraudulent. They criticized Trump’s legal team for failing to deter such ventures, noting that in his first term, legal advisers often restrained some of his more impulsive decisions.
“No careful President would get anywhere near this kind of political risk, and we can’t recall any President who has,” the board concluded. The editorial painted Trump’s cryptocurrency venture as a reckless and politically dangerous gamble that could undermine his presidency and reputation.