While the price of Donald Trump's meme coin keeps dropping, the token might cause the US president even more problems. A consumer advocacy group is demanding an investigation into the Republican's crypto actions.
The 54-year-old nonprofit Public Citizen, which has 500,000 members and supporters, is asking the Department of Justice (DOJ) and the Office of Government Ethics (OGE) to investigate whether Trump has violated rules that bar the president from soliciting gifts.
According to the advocacy group, the President has violated these rules by promoting his meme coin, TRUMP, which was launched just days before his inauguration on January 20th.
Indeed, on social media, Trump promoted his token, urging people to join his "very special Trump Community" and "GET YOUR $TRUMP NOW," adding a link to the website that facilitates the purchase of the meme coin.
Public Citizen emphasized that Trump is the principal owner of the meme coin, which is 80% owned by CIC Digital LLC. This entity, in turn, is owned by the Donald J. Trump Revocable Trust, of which Trump himself is the sole beneficiary.
Moreover, the website of the meme coin confirms that "this is the only Official Trump Meme by President Donald J. Trump."
The nonprofit also noted that the website urges people to buy the token, claiming that this allows them to own "your piece of history" and that "This Trump Meme celebrates a leader who doesn't back down." However, the website also clarifies that the meme coin is not an investment contract or security.
"Accordingly, a person sending money for a Trump meme is not purchasing a tangible product. Instead, the person receives only a digital receipt (on a blockchain), which is similar to a donor sending a check and receiving digital confirmation that the check was received," Public Citizen concluded, adding that Trump is "asking for a gift that will benefit him personally."
Additionally, the consumer advocacy group reiterated previous concerns that foreign powers might use the meme coin to influence the president.
"Because of the nature of a cryptocurrency exchange, it is difficult to know whether foreign state actors are gifting the president by way of purchasing a Trump meme. We urge you to investigate this issue as well," Public Citizen said.
The organization is also asking the DOJ and OGE to stop selling the meme coin and refund buyers' money if they find that Trump is soliciting gifts.
However, returning the money might be challenging, as the price of TRUMP is down 74% from its highs on January 19th. Its market capitalization is still hovering near $3.8 billion.
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