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Sohrab Khawas
Sohrab Khawas
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Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Jan 23, 2025 14:48 UTC
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Trump Meme Coin Sparks Debate, Cathie Wood Weighs In
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TRUMP $ 11.29 (-5.61%) 
Cathie Wood dismisses Trump coin as speculative, focusing on Bitcoin, Ethereum, and Solana for real-world DeFi innovation.
Experts warn of Trump token risks, citing 94% holder concentration and ethical concerns over conflicts of interest in regulation.
The launch of the Trump meme coin has stirred the crypto world, drawing attention to its rapid rise and controversial nature. Debuting on January 17, the coin quickly gained billions in trading volume, partly fueled by endorsements from Donald Trump 
Donald Trump
Donald J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.
Quick Facts
Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician
Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.
Donald Trump - Career Highlights & Events
2016 – Elected as the 45th President of the United States from the Republican Party. 2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments 2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money" 2024 – Campaign signals potential openness to crypto-friendly reforms 2025 – Elected as the 47th President of the United States from the Republican Party.
A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture.
President 
himself. However, the coin’s speculative nature and potential conflicts of interest have raised eyebrows. Adding to the drama, Melania Trump introduced her own Melania coin shortly after, creating a frenzy in the market.
Despite its popularity, experts like Cathie Wood, CEO of ARK Invest, remain skeptical. Let’s dive into her perspective and why she’s steering clear of the Trump token.
Cathie Wood’s Take: No Utility, No Interest
Cathie Wood has dismissed the Trump coin as lacking real-world utility. In a January 22 interview with Bloomberg, she critiqued the token for being purely speculative, noting that while some claim it might grant exclusive access to Trump, there’s little evidence to support its value beyond its meme status.
Wood’s skepticism isn’t limited to the Trump coin. She has consistently avoided meme coins, focusing instead on assets with clear use cases and long-term growth potential. She emphasized her preference for the “big three” of crypto: Bitcoin, Ethereum, and Solana. These assets, she believes, represent the future of decentralized finance (DeFi) and innovation in the blockchain space.
Concerns About Concentration and Manipulation
Wood’s concerns echo findings from blockchain analytics firm Chainalysis, which revealed that a small group of wealthy holders controls 94% of the Trump and Melania tokens. This concentration raises the risk of market manipulation, making these tokens even riskier for everyday investors. Despite this, the Trump token has attracted a massive user base, with nearly 790,000 wallets holding the coin. Interestingly, almost half of the buyers created new wallets on the day they purchased the token, indicating a surge of first-time crypto users.
A Broader Vision for Crypto
While Wood dismisses the Trump coin, her outlook on the broader crypto ecosystem remains bullish. She believes in the transformative power of DeFi, particularly projects built on Ethereum and Solana, which she describes as the backbone of future financial services.
For ARK Invest, the focus is clear: avoid short-term hype and invest in assets that drive real-world innovation. She is clear about choosing long-term assets rather than fake trending tokens which can disrupt the crypto market.
However, she is not alone in criticizing the TRUMP token. Outside crypto industry critics have raised serious ethical and national security concerns over Trump’s meme coin. With Trump directly profiting from the token, some worry this creates a conflict of interest, as his financial stake could stop him from regulating the crypto industry.
Representative Ro Khanna even called for laws banning elected officials from owning meme coins. Plus there is fear that foreign elements can control the industry and manipulate Trump’s decisions by buying or dumping the token.
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