On May 6, 2025, the TRUMP Token, a meme coin associated with President Donald Trump, is at the center of an ethics probe and a dramatic market crash. The token’s price, which peaked at $75 following an announcement of a “Dinner with the President” event for top holders, has collapsed to $11, marking an over 85% decline. This situation has sparked significant debate over the intersection of cryptocurrency, politics, and ethics.
The ethics probe was initiated by U.S. Senators Elizabeth Warren and Adam Schiff, who sent a letter to the Office of Government Ethics on April 25, 2025, demanding an investigation. They argue that Trump’s promotion of the TRUMP Token, especially the dinner event offering exclusive access to the presidency, raises serious legal and ethical concerns. The Senators highlighted the potential for foreign entities to influence the President through token purchases, noting, “This creates a volatile financial asset that allows anyone in the world to speculate on Trump’s political fortunes” (Elizabeth Warren joins call for probe of Trump over crypto tokens – Cointelegraph).
Even Republican Senator Cynthia Lummis expressed unease, stating, “This gives me pause,” despite her support for Trump and Bitcoin, adding to the controversy (TRUMP Token Faces Ethics Probe, Price Collapses From $75 to $11 – CoinEdition).
Price Collapse and Market Dynamics
The TRUMP Token’s price surged by 70% last week after the dinner announcement, reaching $75, but then crashed to $11, as reported on May 6, 2025. This volatility has raised suspicions of “pump-and-dump” tactics, where the price is artificially inflated before being sold off, causing losses for other investors. Current trading data shows the token at around $11, with key support levels at $10.32, according to recent analyses (OFFICIAL TRUMP Price, TRUMP Price, Live Charts, and Marketcap – Coinbase).
The crash follows a pattern seen in other meme coins, exacerbated by the token’s ties to Trump’s political influence. Reports indicate that about 80% of the token supply is controlled by the Trump Organization and affiliates, adding to concerns about market manipulation (Trump’s First 100 Days: Crypto Gains, Controversy, and Chaos – CoinBackyard).
Broader Implications
This situation underscores the risks of meme coins tied to public figures, especially in the context of regulatory scrutiny. The ethics probe could lead to tighter regulations on cryptocurrency promotions by political figures, impacting the broader crypto market. Investors are advised to approach such assets with caution, given the volatility and potential for regulatory action.
The TRUMP Token’s collapse also highlights the challenges of balancing innovation in digital assets with ethical governance, prompting calls for greater transparency and oversight in the crypto space.
