Several Retailers Now Accepting $TRUMP As Payment

Several online stores selling Trump-branded merchandise have started accepting the TRUMP meme coin as payment. The move appears to target the president’s supporters and expand the token’s usage.

Websites such as GetTrumpWatches.com, GetTrumpFragrances.com, and GetTrumpSneakers.com, which operate under a licensing agreement for Trump-branded products, now allow customers to pay with TRUMP. Payments can also be made via credit cards and Bitcoin.

TRUMP meme coin is now entering the retail sector

The TRUMP meme coin launched on 17 January, with the president himself promoting it on social media. Its value has fluctuated significantly and is well below its peak. However, the token still held a market capitalization of $5.5billion as of Wednesday, according to CoinGecko.

Other businesses, including Binance-backed travel booking platform Travala.com, have recently started accepting the token. While speculation has driven most of the coin’s trading activity, these payment integrations offer some practical use for the meme coin.

Efforts to make crypto a standard payment method for online shopping have been ongoing for years. Stablecoins, pegged to traditional currencies, have gained traction for transactions. However, cryptocurrencies with volatile prices have struggled to achieve widespread adoption as a payment option.

This is more concerning for meme coins like TRUMP. Meme coins are extremely volatile, more so than the larger cryptocurrencies. At the same time, there are concerns that any adoption or expansion of TRUMP’s use case will directly benefit the president and his family, as 80% of the tokens are controlled by the creators.

Overall, the meme coin has the potential to generate massive revenue for the US president, raising concerns about conflicts of interest as his administration shapes crypto regulations. Entities linked to Trump are set to receive a significant portion of the tokens as they unlock over time.

Trading in the token has likely brought in at least $11.4million in fees for Trump-affiliated groups since its launch. Also, this should be illegal based on the US Constitution, as presidents are not allowed to engage in ventures profiting themselves.

According to Solscan, the meme coin debuted on a Solana-based exchange and has approximately 700,000 holders. Customers using the token for purchases on Trump-affiliated sites must select ‘Solana Pay’ at checkout.

Trump has long profited from branded merchandise and has recently embraced digital assets. He previously promoted NFT collections featuring his likeness in various poses. He and his sons have also announced their involvement with World Liberty Financial, a digital asset company that claims it will offer yield-earning opportunities for crypto holders.

A series of ethical concerns

This rapid adoption of the TRUMP meme coin raises several ethical concerns:

• Conflict of interest: President Trump’s direct involvement in launching and promoting TRUMP presents a conflict of interest, as his administration is responsible for regulating the cryptocurrency industry. Ethics experts warn that this dual role could lead to biased policy decisions favoring personal financial interests.
• Market manipulation: Reports indicate that Trump-affiliated entities hold a significant portion of the $TRUMP coin supply, granting them substantial influence over its market value. This concentration raises concerns about potential market manipulation, where strategic trading could unfairly benefit insiders at the expense of other investors.
• Foreign influence: The anonymous nature of cryptocurrency transactions allows foreign entities, including adversarial nations, to acquire TRUMP coins without detection. This scenario poses national security risks, as foreign actors might use such holdings to exert undue influence over U.S. policy decisions.
• Investor risk: Meme coins like TRUMP are known for their extreme price volatility and lack of intrinsic value. Investors, particularly those new to cryptocurrency, face a high risk of financial loss due to sudden market fluctuations or potential “pump-and-dump” schemes.

These ethical dilemmas underscore the need for careful consideration and regulatory scrutiny as the meme coin gains wider adoption.