Donald Trump’s memecoin is attracting attention for more than its soaring price. A new report indicates that some of the coin’s largest holders do not reside within the United States. This is on the heels of a recent announcement that the largest 200 holders would be invited to a dinner with Trump, privately hosted.
The event is scheduled for May 22 at his Virginia golf course. Joining them would be the top 25 holders for a special reception and a VIP tour as well. Bloomberg News looked at the memecoin leaderboard. It discovered that 19 of the top 25 listed users have traded on exchanges abroad. These exchanges do not permit residents of the United States to use them.
In aggregate, well over half of the top 220 holders seem to have used the same foreign sites. This trend indicates that a large proportion of the largest purchasers may be foreign residents.
Foreign ties raise Memecoin fears
The memecoin began attracting attention after Trump started promoting it on the eve of his inauguration. Demand surged over the last few weeks with the dinner deal on the table. The promotion has made a niche token a national phenomenon. But the increase in foreign-linked purchases has become a source of new concern.
Members of Congress, predominantly the Democrats, have already expressed objections. They question the morality of granting entry to a former head of state through a cryptocurrency sale.
That people can remain largely anonymous contributes to these concerns. User usernames on the leaderboard only have a few letters. That makes it difficult to know who is really behind each of them. Organizers have made no comment on how they plan to authenticate those that attend.
Trump memecoin sparks ethics talk
Since several usernames are linked to foreign exchanges, the screening process is not clearly outlined. This creates both security and ethical issues. There are concerns that the arrangement could obscure where political involvement ends and financial rewards begin.
The episode illustrates how digital tokens may intersect with real-world events in peculiar ways. As cryptocurrency becomes increasingly mainstream within political circles, regulation is still unclear. Today, the Trump dinner invitation illustrates how much crypto is able to provoke, both within markets and at large within public discourse.
The guest list has not yet been made public. But with the date approaching, pressure could mount to ensure that the dinner guests pass legal and ethical muster. The question is no longer about money or value anymore. It is a matter of who gets to come in and why.
