Trump's Meme Coin Contest: Participants Spend $148 Million For Dinner With POTUS

MemeconxA $TRUMP meme coin contest drew an estimated $148 million in spending from participants vying for a dinner with U.S. President Donald Trump. The contest, which began in April 2024, offered top holders an exclusive invitation to a gala dinner at Trump's private golf club near Washington, D.C., scheduled for May 22. The top 25 participants were also promised a VIP reception and a private tour with Trump.

Launched by companies connected to Trump's family business, the $TRUMP coin experienced significant price fluctuations. The $TRUMP coin, which initially launched at an all-time high of $75.35 in January, dropped to as low as $7.40 in April before recovering. It is now trading at $13.58, up by 6.09 per cent, with a market capitalization of approximately $2.71 billion.

Reuters, citing crypto intelligence firm Inca Digital, reported that the top 220 holders spent a combined $147.6 million in time-weighted holdings.

While large investors profited by more than $10 million, roughly 600,000 wallets lost approximately $3.9 billion from the coin's January 2024 inception. Data shows that nearly half of the top holders who invested substantial amounts in the coin have incurred notable losses.

The event's terms and conditions mentioned that Trump's attendance Is not guaranteed and the dinner could be cancelled for any reason.

The $TRUMP coin's promoters have also earned substantial revenue from transaction fees, estimated at $320 million, with over $1 million of that coming after the dinner promotion was announced. Blockchain analytics firm Chainalysis observed that the increase in fees followed the promotional campaign.

Ethics experts have raised concerns about foreign influence and transparency due to the coin's political ties. Donald Sherman, senior vice president at Citizens for Responsibility and Ethics in Washington (CREW) told Reuters that such initiatives blur the lines between politics and private gain, emphasizing the need for greater evaluation and control.

Democratic lawmakers, including Senator Richard Blumenthal, have raised concerns over potential foreign influence and ethics violations related to Trump's $TRUMP meme coin. Blumenthal has launched an inquiry, while others have proposed bills to limit politicians' involvement in cryptocurrency ventures, reported Reuters.

The $TRUMP meme coin is part of Trump's growing cryptocurrency portfolio, which includes World Liberty Financial, Trump Media & Technology Group's crypto ETFs, and American Bitcoin.