Caffeine Addiction: 80% of Trump Coin Goes to Insiders

by

Stephen Findeisen, more commonly recognized as Coffeezilla on YouTube, scrutinized Donald Trump’s latest introduction of a meme coin, referring to it as a “notable swindle in history.

Certainly, the President-elect, Trump, shared a post about the meme coin on his Truth Social platform. Additionally, he released a statement regarding X, which was previously known as Twitter.

As a financial analyst, I’ve confirmed that the decentralized cryptocurrency wallet, Phantom, which has the backing of prominent venture capital firms like Sequoia and Andreessen Horowitz, indeed exists. However, I wishfully think otherwise due to certain reservations, as represented by Findeisen.

“I hope to everything that I will wake up and find I’ve been deep faked,” he said.

Check out my latest Official Trump Meme! It’s a time to rejoice and uphold our values – victory! Join our unique Trump-focused community. Secure your $TRUMP today. Head over there for some fun!

— Donald J. Trump (@realDonaldTrump) January 18, 2025

A YouTube investigator, famous for his critical videos on suspected cryptocurrency scams (like Hawk Tuah Girl and Andrew Tate), expresses concern that the newest crypto venture by Donald Trump might primarily benefit insiders at the expense of MAGA supporters, who are just hours away from the inauguration.

Below are the key takeaways from Findeisen’s breakdown:

  • Launch of Trump Meme Coin: Trump — who already launched the World Liberty Financial (WLFI) toekn with his sons last year — unveiled a new meme coin, dubbed “Trump Coin.” Findeisen criticizes the timing, suggesting it was a cynical attempt to profit off the political hype ahead of the swearing-in ceremony on Jan. 20.
  • Market Cap & Fees: The meme coin currently boasts a market cap of $13 billion. Despite this, Findeisen points out that its intrinsic value is zero. Additionally, over $12 million has been made in fees just from trading volume, highlighting the coin’s speculative nature.

  • Lack of Transparency: 80% of the coin is owned by Trump’s camp, Findeisen points out. Only 20% of ‘Official Trump’ is available to the public. Of that 20%, 10% went to the liquidity pool, and another 10% went to public allocation. The allocation breakdown for the remaining 80% is notably vague, with obscure labels like “CIC Digital 1, 2, 3, etc.”
  • Lock-up Periods: The 80% owned by insiders will gradually be unlocked over a three-year period, with different groups experiencing varying lock-up durations of three to 12 months. This unlock will coincide with Trump’s presidency, which he believes adds a layer of exploitation.
  • Losses Likely: The real money will be made by insiders who knew about the launch in advance and got in at the ground level, Findeisen explains. The remaining public will likely lose money.

Criticism of insider profits

Findeisen points out the contradiction in leveraging the presidency for the promotion of a meme currency, which he considers as a significant conflict of interest, given its novelty.

Findeisen explains that labeling it as a conflict of interest is like casting blame on everyone who has faced such situations before. He finds it absurd to exploit the presidency for self-enrichment by promoting a meme coin in this manner, benefiting insiders and others, but not the general public.

According to Findenise, it’s possible that the Trump team may try to minimize or deny their involvement as the criticism intensifies.

Watch the full video below.

Prior to the debut of Trump’s meme token, the Trump family’s presence in the cryptocurrency sector had previously sparked concerns about ethics, as reported by The New York Times.

Last autumn, my family played a part in kickstarting WLFI, a digital currency platform facilitating loans and lending. While we don’t hold any ownership or executive positions, we do have an arrangement that remunerates us for endorsing this platform under Trump’s name.

The business saw significant growth following the involvement of cryptocurrency tycoon, Justin Sun, as an advisor, and his investment of $30 million in the company’s tokens.

The business asserts it has approximately 20,000 token owners, yet these tokens cannot be re-sold, rendering them devoid of instant monetary worth. However, transactions carried out by clandestine investors are expected to result in a massive sum of money going towards the Trump family.

Trump, Bitcoin and Ethereum

As a researcher examining the intersection of traditional finance and cryptocurrencies, I’ve observed an intriguing correlation between significant figures in traditional finance and the fluctuation of Bitcoin (BTC) prices. For instance, when President Trump appointed Paul Atkins as chair of the Securities and Exchange Commission, there was a notable surge in BTC price that culminated in its passage beyond $100,000. While it’s essential to emphasize that causality cannot be definitively established from this observation alone, the timing of these events suggests a potential link between high-level financial appointments and market dynamics.

Trump is reported by The New York Times to hold approximately $5 million worth of Ethereum (ETH), a cryptocurrency that has seen an increase in value following his election.

According to Atkins, it’s anticipated that the Securities and Exchange Commission (SEC) may establish new regulations which might enhance the overall worth of cryptocurrencies, with a particular focus on tokens associated with World Liberty Financial and Donald Trump’s official meme token.

These alterations might possibly result in extra earnings totaling hundreds of millions for Trump and his kin.

Read More

2025-01-18 17:08