TLDR
- President Trump’s meme coin ($TRUMP) has delayed insider token unlocking by 90 days
- The token surged 50% after announcing a dinner with Trump for top 220 token holders
- Senators Warren and Schiff are calling for an ethics investigation, citing “pay to play” concerns
- The $TRUMP token has generated over $350 million in fees for insiders despite no underlying product
- With Republicans controlling Congress and the White House, ethics complaints are unlikely to succeed
President Donald Trump will need to wait longer before selling his cryptocurrency tokens, as the $TRUMP token project announced a 90-day delay for insider sales that were set to begin this month. This development comes amid growing controversy over the token’s connection to presidential access and ethics concerns.
The $TRUMP token, which launched in January ahead of Trump’s inauguration, was scheduled to begin unlocking a major portion of insider-held tokens. However, the project’s official X account announced that all major unlocks would be delayed by an additional three months.
Currently, only 20% of the total $TRUMP token supply is available for trading. The remaining 80% is held by insiders and locked under a three-year vesting schedule designed to prevent what cryptocurrency enthusiasts call a “rug pull” – a scheme where insiders quickly cash out while leaving other investors with losses.
The token made headlines this week when it surged more than 50% after announcing an exclusive dinner with President Trump. The project’s website offered the top 220 holders of the $TRUMP token dinner with the president on May 22 at his golf club near Washington, D.C.
Ethics Investigation Demanded
This dinner promotion has drawn sharp criticism from Democratic lawmakers. Senators Elizabeth Warren of Massachusetts and Adam Schiff of California have called on the U.S. Office of Government Ethics to investigate whether the promotion constitutes “pay to play” corruption.
In their letter to the ethics office, the senators expressed concern that this arrangement could allow foreign nationals and corporate actors with interests in federal action to gain access to the president simply by investing in his crypto projects. Senator Jon Ossoff joined Warren and Schiff in their criticism, calling for Trump’s impeachment over the dinner invitation.
The senators questioned whether Trump or his family had received ethics guidance about profiting from digital assets while in office. They also asked what safeguards exist to prevent individuals seeking political favors from using crypto investments to buy influence.
Despite these concerns, experts note that with Republicans now controlling both the White House and Congress, and with the OGE director appointed by Trump himself, the senators’ demands for accountability may go unheeded. The Office of Government Ethics can issue recommendations but lacks enforcement power over sitting presidents.
The $TRUMP token, like most meme coins, has no underlying product or service. Following its January launch, First Lady Melania Trump introduced her own token — $MELANIA — which briefly exceeded $2 billion in market value before declining along with $TRUMP.
According to blockchain analysis firm Chainalysis, the main wallet behind $TRUMP has earned more than $350 million in USDC stablecoin by acting as a market maker and collecting fees on trades.
Shortly after the release of the $TRUMP and $MELANIA coins, the Securities and Exchange Commission issued guidance stating that meme tokens don’t qualify as securities. This effectively shields the projects from immediate regulatory scrutiny.
The Trump family has yet another crypto project underway. World Liberty Financial, a decentralized finance venture backed by the first family, has raised $550 million across two token sales since October. Buyers are barred from reselling their tokens and receive no share of profits, while a Trump-affiliated entity is entitled to 75% of net revenue, including token sale proceeds.
The $TRUMP token is currently trading at around $14, down nearly 6% in the last seven days, according to market data. The token’s market cap had previously surged to $15 billion, fueled by Trump’s social media posts celebrating “WINNING!”
The exclusive dinner for token holders will take place at Trump National Golf Club, with strict security measures including background checks and wallet compliance verifications. As the event approaches, the debate over presidential ethics and cryptocurrency continues to intensify in Washington.
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