President Trump is holding a private dinner at his golf club in Virginia–with a visit to the White House as a reward–to the top 220 people who have invested in his cryptocurrency, $TRUMP, launched on the eve of his return to Washington DC.
“Have Dinner with President Trump and the $TRUMP Community!” reads the invitation launched on his webpage, “Let the President know how many $TRUMP coins YOU own!”. The event has also been described as the most exclusive in the world. When news of the dinner invitation spread on social media, the price of memecoin rose by more than 60 percent, suggesting that investors were rushing to accumulate enough coins to qualify for a seat at the dinner.
After an initial pre-Inauguration Day boom, the price of $TRUMP subsequently collapsed. Traders who had accumulated the coin suffered cumulative losses of more than $2 billion. With the new event scheduled, however, the value of the virtual coin has risen upward again.
A business entity linked to Trump owns a large tranche of coins, meaning that the president personally gains every time the price rises. Trump and his business partners also collect commissions when the coins are traded, a windfall that netted nearly $100 million in the weeks after the president returned to the White House.
Earlier this year, the S.E.C. issued official guidance stating that memecoins, would not be subject to the agency’s oversight. Skeptics have criticized the policy, seeing it as a risky move that could open the door to numerous frauds.
In the fall, Trump and his sons, Donald Jr., Eric and Barron, announced that they would establish a company, World Liberty Financial, which offered a digital currency called WLFI. So far, according to the company, $550 million of these cryptocurrencies have been sold. Not long after, Trump’s social media company moved to offer cryptocurrency-related financial products to amateur investors as well and announced a partnership with Crypto.com.
On the memecoin website, the promoters of $TRUMP have created a ranking of the coin’s top investors. The top 25 buyers will win access to a reception with Mr. Trump before the dinner, and a V.I.P. tour of the White House.
