Exclusive Invitation for Investors
An extravagant online promotion heralded “the most EXCLUSIVE INVITATION in the World,” offering a rare opportunity to enjoy a private dinner with former President Trump at his golf club in Virginia, followed by a tour of the White House. This invitation is specifically reserved for the top 220 investors in $TRUMP, a cryptocurrency launched by Trump just before he took office. In an unprecedented move to monetize crypto, a website dedicated to $TRUMP revealed on Wednesday that the largest purchasers of the coin would receive an invitation to meet the former president. Essentially, this initiative presents an opportunity to gain access to the White House in exchange for investing in one of Trump’s crypto endeavors.
Ethical Concerns Surrounding Crypto Ventures
The announcement of the dinner raised significant ethical questions, as Trump’s involvement in the cryptocurrency market creates conflicts that are largely without precedent in U.S. presidential history. While promoting digital currencies, Trump has also appointed regulators who are curtailing enforcement actions against crypto activities and has called for legislation aimed at enhancing the industry’s growth in the United States. As the invitation circulated on social media, the price of the memecoin surged over 60%, indicating that investors were eager to acquire enough coins to qualify for a seat at the dinner. “This is really incredible,” remarked Corey Frayer, who previously managed crypto policy at the SEC during the Biden administration. “They are making the pay-to-play deal explicit.”
Financial Implications for Trump
A business entity linked to Trump possesses a substantial amount of the $TRUMP coins, meaning that any increase in the coin’s value directly benefits him financially, at least on paper. Trump and his partners also profit from transaction fees associated with trading the coin, which yielded nearly $100 million shortly after its launch in January. Victoria Haneman, a law professor at Creighton University, expressed concerns regarding the potential for Trump and his businesses to exploit the presidency for profit. Earlier this year, the SEC released formal guidance stating that memecoins—cryptocurrencies based on internet jokes or celebrity figures—would not be subject to regulatory oversight. Critics of this policy warned that it could lead to increased fraud by memecoin promoters.
Presidential Immunity and Regulatory Challenges
As president, Trump benefits from broad immunity regarding conflicts of interest, a loophole he has previously highlighted. Requests for comments from White House representatives went unanswered. Eric Trump, who is involved with the Trump Organization, a sponsor of the $TRUMP coin, also chose not to make a statement. Initially skeptical about cryptocurrencies, Trump shifted his stance during his campaign last year, as crypto companies invested heavily in the upcoming 2024 election.
Expansion of Crypto Ventures
In the fall, Trump and his sons announced the establishment of World Liberty Financial, which offers a digital currency named WLFI. To date, $550 million worth of these coins have been sold, according to company reports. Additionally, Trump Media & Technology Group, Trump’s social media firm, is venturing into crypto-related financial products for everyday investors and has partnered with Crypto.com, a digital trading platform. However, the $TRUMP memecoin has attracted the most attention.
Fluctuating Market and Strategic Timing
Just three days prior to his inauguration, Trump announced the sale of the $TRUMP coin on his social platform, Truth Social, which resulted in a dramatic spike in sales, making him a crypto billionaire on paper. However, like many memecoins, $TRUMP’s value soon dropped, leading traders to face over $2 billion in cumulative losses. The recent dinner announcement appears to be a strategic move aimed at reigniting interest in the coin.
When $TRUMP was introduced in January, a substantial portion of the coins was allocated to its backers, but insider trading restrictions kept these investors from selling until recently, raising fears that their actions could further depress the coin’s price. Instead, the coin’s value increased in the days leading up to the dinner invitation’s release and soared once the announcement was made.
Investor Rankings and Exclusive Access
The promoters of $TRUMP created a leaderboard displaying the largest investors in the coin, essentially gamifying the investment experience and allowing buyers to monitor their standings. Invitations to the dinner will be extended to the “top 220 average $TRUMP owners” between April 23 and May 12, as stated on the website. The top 25 purchasers will gain access to a reception with Trump prior to the dinner, along with a VIP tour of the White House. As it stands, the 25th investor on the leaderboard possesses approximately 4,000 coins, valued at around $54,000. The website encourages, “The more $TRUMP you hold—and the longer you hold it—the higher Your Ranking will be.” The dinner with Trump is scheduled for May 22 at the Trump National Golf Club, touted as the “Most Exclusive Once in a Lifetime Invitation.”
