Outside Source
Donald and Melania Trump’s entry into the crypto space with their meme tokens has sparked debate over regulatory strategy.
Zach Burks, CEO and founder of Mintology, a blockchain service provider, believes that by branding their tokens as “memes” rather than “coins,” Trump appears to be positioning them outside the scope of securities laws, an approach he described as a “masterclass in compliance in meme marketing.”
“By advertising their tokens simply as ‘memes’ instead of using the term ‘coin’, the Trumps are blatantly attempting to avoid their tokens being classified as securities,” Burks wrote in a note to crypto.news. “This is a masterclass in compliance in meme marketing and is a clear move to futureproof themselves from inevitable accusations of pump-and-dump schemes.”
An unexpected surge in demand for Trump’s token prompted the quick launch of a Melania-themed meme token, which some speculate was intended to diffuse scrutiny surrounding Trump’s own token, according to Burks.
By avoiding language that could trigger enforcement by the Securities and Exchange Commission , Trump’s approach highlights a broader trend in the evolving relationship between crypto and regulation, Burks added.
Trump’s meme affair
The Trump family launched two meme coins, TRUMP (TRUMP) and MELANIA (MELANIA), in quick succession, sparking market volatility and backlash.
On Jan. 17, Donald Trump announced the TRUMP token on the Solana (SOL) blockchain via Truth Social, urging supporters to join his “Trump Community.”
Two days later, Melania Trump introduced her own token, MELANIA, also on Solana.
TRUMP’s price skyrocketed, reaching a peak of $75 with a $15 billion market cap. The token surged 840% from its $6.24 low on Jan. 18, making it the 18th largest cryptocurrency.
This article first appeared at crypto.news
