Outside Source
Representative Maxine Waters did not mince words discussing Trump’s official memecoin, calling it a rug-pull scheme that left investors unable to seek legal action.
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California Representative Maxine Waters, the top Democrat on the US House Financial Services Committee, echoed concerns from many crypto users and lawmakers accusing President Donald Trump of compromising legitimate projects in the industry by releasing his own memecoin.
In a Jan. 20 statement, Rep. Waters said the Official Trump (TRUMP) token represented the “worst of crypto” and provided an example for regulators and policymakers to be concerned about the future of the industry under the new presidential administration. The California lawmaker said investors would be “left holding the bag when Trump’s insiders sell,” alleging a rug pull.
“The coin’s terms and conditions block buyers from bringing class-action lawsuits even if they are swindled,” said Rep. Waters, adding:
“There is also a troubling lack of transparency around the buyers of this coin. Through his memecoin, Trump has created a way to circumvent national security and anti-corruption laws, allowing interested parties to anonymously transfer money to him and his inner circle.”
Related: What the release of Trump’s memecoin signals for crypto regulations
The token was launched on Jan. 17, the same day as Trump’s wife, Melania, introduced her own branded memecoin. It has received widespread criticism — even among some diehard supporters — for allegedly attempting to capitalize on the office of the presidency. In the last 24 hours, the price of the coin has fallen more than 40%, from $67.87 to $38.54 at the time of publication.
This article first appeared at Cointelegraph.com News
