The two separate cryptocurrency-themed dinners that President Donald Trump will hold in May have intensified criticism regarding his relationship with TRUMP memecoin holders and potential conflicts of interest.
Despite criticism regarding his and his family’s connections to cryptocurrencies, President Donald Trump announced plans to hold two separate crypto-themed dinners in May. In a post on Truth Social on Monday, President Trump revealed that in addition to a dinner for the top 25 holders of the official TRUMP memecoin he previously announced, he would also organize a new event titled "Crypto and Artificial Intelligence Innovators Dinner."
This news came after Massachusetts Democratic Senator Elizabeth Warren and California Democratic Senator Adam Schiff characterized the Trump family's cryptocurrency transactions as "suspicious." Lawmakers expressed their concerns, claiming that Trump's currency memecoin has the potential for bribery and corruption.
"1.5 million dollars per plate"
The dinner on Monday, organized to raise funds for the MAGA Inc. super PAC, will feature technology investor David Sacks, known as the "Crypto Baron," as a special guest. According to CNBC, the participation fee for the dinner starts at 1.5 million dollars per plate, making it one of the "most expensive political fundraising events in recent history."
The gala dinner scheduled for May 22, organized for the TRUMP memecoin, created significant commercial activity for the token. After the gala, the token gained more than 50% in value. Senators Schiff and Warren mentioned in their joint letters that "in President Trump’s announcement, special access to the presidency is promised in exchange for a significant investment in one of the President’s business ventures."
Mixed Reactions and Ethical Issues
In a controversial interview with NBC News reporter Kristen Welker, Trump downplayed allegations of potential conflicts of interest related to providing access to token holders. "I don't profit from anything. All I'm doing is starting this long before the election. I want crypto. I think crypto is important because if we don't do it, China will," Trump said.
However, according to the project's website, approximately 80% of the token supply is controlled by the Trump Organization and its affiliates. According to a Chainalysis report, around $325 million in transaction fees has been directed to wallets controlled by the project through an established mechanism that directs a percentage of every transaction since its launch in January.
Opinions are also divided among experts in the cryptocurrency sector. Wormhole's general counsel Cathy Yoon stated, "I don't think the nature of promoting $TRUMP is inherently illegal, but I can say it raises issues of integrity and a lot of ethical questions," while crypto lawyer Olta Andoni noted that it is "a memecoin like other memecoins" and does not consider it illegal.