The launch of the Trump meme coin has stirred up the crypto world, drawing attention to its rapid rise and controversial nature. Launched on January 17, the coin quickly gained billions in trading volume, fueled in part by support from Donald Trump himself. However, the speculative nature of the piece and potential conflicts of interest raised eyebrows. To add to the drama, Melania Trump introduced her own Melania coin shortly after, creating a frenzy in the market.
Despite its popularity, experts like Cathie Wood, CEO of ARK Invest, remain skeptical. Let’s take a look at her views and why she’s avoiding the Trump token.
Cathie Wood’s point of view: no use, no point
Cathie Wood dismissed the Trump coin as lacking real-world utility. In an interview with Bloomberg on January 22, she criticized the token as purely speculative, noting that while some claim it could grant exclusive access to Trump, there is little evidence to support its value beyond its meme status.
Wood’s skepticism isn’t limited to the Trump piece. It has always avoided meme corners, instead focusing on assets with clear use cases and long-term growth potential. She emphasized her preference for the “big three” of crypto: Bitcoin, Ethereum and Solana. According to her, these assets represent the future of decentralized finance (DeFi) and innovation in the blockchain space.
Concerns about concentration and handling
Wood’s concerns echo findings from blockchain analytics firm Chainalysis, which found that a small group of wealthy holders control 94% of Trump and Melania tokens. This concentration increases the risk of market manipulation, making these tokens even riskier for ordinary investors. Despite this, the Trump token has attracted a massive user base, with almost 790,000 wallets holding the token. Interestingly, almost half of buyers created new wallets on the day they purchased the token, indicating an increase in new crypto users.
A broader vision for crypto
Although Wood rejects the Trump coin, his outlook on the broader crypto ecosystem remains optimistic. She believes in the transformative power of DeFi, particularly projects based on Ethereum and Solana, which she describes as the backbone of future financial services.
For ARK Invest, the goal is clear: avoid short-term hype and invest in assets that drive real-world innovation. She is clear about choosing long-term assets over fake trending tokens that can disrupt the crypto market.
However, she is not the only one to criticize the TRUMP token. Critics outside the crypto industry have raised serious ethical and national security concerns about Trump’s coin. While Trump directly profits from the token, some fear this could create a conflict of interest, as his financial stake could prevent him from regulating the crypto industry.
Rep. Ro Khanna has even called for laws banning elected officials from owning meme coins. Additionally, there are concerns that foreign elements could control the industry and manipulate Trump’s decisions by purchasing or abandoning the token.
