What happened?
Trump used a podium with the presidential seal at the private dinner, which is suspected of violating federal law. Although the White House claims this was Trump's personal action, his arrival by military helicopter and comments on current affairs have deepened suspicions about conflicts of interest.
To attend this 'exclusive' dinner, investors splurged nearly $150 million to buy $TRUMP meme coins, with the top 25 holders enjoying private receptions with Trump, limited edition expensive watches, and other privileges. However, many guests who did not make the top 25 complained about a poor dinner experience, bad food, and Trump's brief appearance with little interaction.
$TRUMP meme coin's launch and this dinner signify his deep involvement in the cryptocurrency space. Notably, Sun Yuchen, who faced SEC lawsuits for issues including 'manipulative trading,' is not only the largest holder of $TRUMP meme coins but also closely linked to Trump family's crypto financial platform World Liberty Financial. His high-profile attendance further exacerbates concerns about regulatory issues and ethical standards in the industry.
What can you get from the Trump meme coin dinner?
U.S. President Donald Trump hosted a highly publicized meme coin dinner on May 22, attracting top holders of Trump meme coins from around the world. This event not only provided a luxurious experience but also sparked extensive discussions about political donations, foreign influence, and investor rights.
According to data from crypto intelligence company Inca Digital, investors collectively invested approximately $148 million to purchase Trump coins for seats at the dinner, with the top 25 holders contributing over $111 million.
And these top buyers enjoyed the following exclusive benefits:
Private VIP reception: The top 25 holders received a private VIP reception with Trump.
Limited edition Trump tourbillon watch: Four of the largest investors will receive a limited edition Trump tourbillon watch valued at $100,000.
Sumptuous dinner: The dinner menu includes organic garden salad, filet mignon, pan-seared halibut, garlic mashed potatoes, and mixed vegetables, with a warm lava cake for dessert.
Chinese crypto entrepreneur and billionaire Sun Yuchen became the largest holder of Trump coins with a meme coin wallet worth $18.5 million and received public recognition at the dinner. Sun Yuchen is also the largest public investor and advisor of the Trump family's crypto platform World Liberty Financial. He not only shared videos of himself at the dinner on social media but also released videos of visiting the White House Executive Office.
Sun Yuchen's attendance at the event sparked considerable controversy. Last year, he was sued by the U.S. Securities and Exchange Commission (SEC) for allegedly 'orchestrating the issuance and sale of unregistered crypto asset securities, manipulative trading, and illegal touting.'
However, just over a month after Trump's inauguration, federal agencies made a 180-degree turn in their approach to cryptocurrency regulation, with the SEC requesting a delay in the case in late February.
Guest reactions at the dinner
Despite the dinner being touted as 'the most unique invitation in the world,' some participants, especially those who did not make the top 25, felt disappointed with the event.
25-year-old Nicholas Pinto asked his dad to drive him to the dinner in a Lamborghini but reported that not only was the food terrible, with no drinks other than water and Trump's wine, but Trump also only stayed for 23 minutes. Trump briefly reiterated some outdated cryptocurrency points before leaving by helicopter, without taking photos or answering any questions from holders outside the top 25.
Additionally, no RFID bags were used to secure phones on-site, and security measures were lax, with many people checking their phones during dinner to monitor coin price fluctuations. Pinto stated, 'In fact, many people don't even hold this coin anymore. They were looking at their phones during dinner, wanting to know if the coin price had fluctuated.'
Concerns of Democratic lawmakers and promotion of legislation
The dinner immediately raised alarms among Democratic lawmakers and regulatory agencies. Senate Democrats held a press conference on the day of the dinner, condemning Trump's cryptocurrency actions as a 'corrupt carnival.'
Trump may face scrutiny for potentially violating federal law by using the presidential seal podium at the Trump coin investors' dinner.
U.S. law prohibits the use of the presidential seal in any way that might suggest government approval or sponsorship, with violators facing fines or up to six months in jail.
Although White House press secretary Karoline Leavitt claimed that Trump's actions were personal and 'this is not a White House dinner,' Trump arrived at the club via military helicopter and praised attendees while criticizing the Biden administration's stance on cryptocurrency. This is not the first time Trump has used the presidential seal in his private ventures, as Forbes previously reported its use as a golf ball marker at several of his golf clubs.
The dinner has drawn significant attention from Congress members. On May 22, 35 House members sent a letter to the Department of Justice requesting an investigation into the meme coin dinner to determine if it violated federal bribery laws or the foreign emoluments clause in the U.S. Constitution. According to the emoluments clause, the U.S. president may not accept any gifts from foreign sources without congressional approval.
Profit and loss situation of meme coins
Data shows that since its launch in January, profits from Trump coin have primarily flowed to large investors. As of May 8, more than 60 large wallets have gained nearly $1.5 billion, of which $48 million in profits were realized after Trump announced the dinner on social media.
However, for the vast number of retail investors, the situation is not optimistic. About 600,000 small wallets have incurred losses of $3.87 billion, with $117 million in losses occurring after the dinner announcement.
After the dinner ended, the price of Trump coin plummeted 16% on the 23rd, indicating a complex market reaction to the event. While Trump's cryptocurrency ventures continue to expand, including crypto exchanges, stablecoins, Bitcoin mining operations, and digital asset ETFs, the political controversies and regulatory challenges it brings are becoming increasingly prominent.
This meme coin dinner is not just a social event, but a mirror reflecting the intertwining of cryptocurrency and politics, conflicts of interest, and regulatory vacuums, with its subsequent developments continuing to attract attention from various quarters.
References: Reuters, CNBC, Cointelegraph
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