NAIROBI (CoinChapter.com)—The launch of Official Trump (TRUMP) and Official Melania (MELANIA) meme coins has sparked controversy, with lawsuits expected against the tokens and their creators. Amid growing legal scrutiny, TRUMP’s price has fallen sharply, currently trading at $36.52, down 11.95% in the past day.
Meme Coins, Profits, and Conflicts of Interest
James Thurber, former director of the Center for Congressional and Presidential Studies, accused Trump of profiting from pro-crypto policies. He called these actions a “blatant conflict of interest,” arguing that they enrich Trump’s family while shaping national cryptocurrency discourse.
Crypto analyst Ryan Lee noted TRUMP has drawn new investors into the crypto space. However, over 570,000 wallets have reportedly incurred losses, compared to 330,000 profiting. The fluctuating fortunes of TRUMP have led many to question its viability as an investment.
Trump Meme Coins: Legal Ambiguities and Potential Lawsuits
Legal experts like Aaron Brogan assert that meme coins often escape regulatory scrutiny because they lack utility and aren’t tied to development projects. However, crypto lawyer Preston Byrne predicts a surge of lawsuits against TRUMP.
Byrne believes the project’s terms of service—specifically the arbitration clause—may shield it from initial purchasers. However, secondary market token holders could argue they aren’t bound by these terms, paving the way for legal action. Byrne forecasts a “100% chance” of a civil lawsuit within two months.
Josh Lawler highlighted a broader regulatory challenge, questioning whether meme coins linked to high-profile figures like Trump should face stricter oversight. Without explicit investment value or functionality, TRUMP remains in a legal gray area.
Political and Legal Implications
The potential lawsuits may have limited practical outcomes. Constitutional protections and Trump’s crafted legal defenses could make it difficult to hold him accountable. Crypto lawyer Aaron Brogan noted that while civil suits may proceed, they are unlikely to inflict lasting damage.
Trump’s influence on crypto regulation could also complicate efforts to regulate politically charged tokens. Preston Byrne observed that TRUMP’s market performance could serve as a barometer of American political sentiment, reflecting not only financial trends but societal divisions.
The legal and political future of Trump-linked meme coins remains uncertain. While lawsuits appear inevitable, their outcomes may amount to little more than political theater.