80% of Trump Coin for insiders, 100% grift: Coffeezilla

80% of Trump Coin for insiders, 100% grift: Coffeezilla

Stephen Findeisen, known for his YouTube channel Coffeezilla, has sharply criticized the recent launch of Donald Trump’s meme coin, calling it a “historic grift.” Findeisen’s commentary on the project, which Trump announced through posts on Truth Social and X (formerly Twitter), highlights concerns over the coin’s speculative nature and potential exploitation of Trump’s supporters.

Phantom, the non-custodial crypto wallet supported by Sequoia and Andreessen Horowitz, confirmed the meme coin’s authenticity, but Findeisen expressed disbelief, hoping it was a deepfake. Known for exposing crypto scams and unethical projects, Findeisen fears that Trump’s latest venture is designed to enrich insiders while taking advantage of his MAGA base just days before his inauguration.

Key Highlights from Coffeezilla’s Breakdown:

• Launch of Trump Meme Coin: Trump, who previously launched the World Liberty Financial (WLFI) token with his sons, introduced the “Official Trump” meme coin. Findeisen argues that the timing, just before Trump’s swearing-in, seems like a cynical effort to capitalize on political hype.

• Market Capitalization & Fees: The meme coin boasts a $13 billion market cap, but Findeisen points out its intrinsic value is zero. Additionally, over $12 million in fees has been made through trading volume, underscoring its speculative nature.

• 80% for Insiders, 100% Grift: Findeisen reveals that 80% of the meme coin is owned by Trump’s circle, with only 20% available to the public. Of the public allocation, 10% went to the liquidity pool, and another 10% was set aside for public purchase. The breakdown of the remaining 80% is unclear, with vague labels like “CIC Digital 1, 2, 3, etc.”

• Lock-Up Periods: The 80% held by insiders will be unlocked gradually over three years, with varying durations of 3 to 12 months. Findeisen suggests this unlock process, coinciding with Trump’s presidency, could lead to exploitation of the public.

• Likely Losses for the Public: According to Findeisen, insiders who got in early will be the ones profiting. The public is likely to lose money, as they are buying into a speculative asset that was already largely controlled by insiders.

Criticism of Insider Profits

Findeisen calls out the hypocrisy of using a presidential platform to promote a meme coin, labeling it an unprecedented conflict of interest. He suggests that promoting such a coin to enrich insiders while exploiting the public undermines trust in both the political and financial systems.

Findeisen speculates that the Trump camp may attempt to downplay or backtrack from their involvement once public backlash increases.

The Trump Family’s Previous Crypto Ventures

Before the launch of the meme coin, the Trump family was already involved in the crypto space through the WLFI platform. Despite not holding official roles, the family secured deals to promote the platform, which has raised ethical questions. The platform gained attention after crypto entrepreneur Justin Sun joined as an advisor, purchasing $30 million in tokens. However, the tokens are not resellable, leading to concerns about their actual value.

Trump’s Impact on the Crypto Market

Trump’s influence on the crypto market has been notable, especially when Bitcoin surpassed $100,000 after his nomination of Paul Atkins as SEC chair. Trump reportedly owns up to $5 million in Ethereum, which has seen a surge in value since the election. Under Atkins, the SEC may introduce regulations that could benefit cryptocurrencies, including tokens related to WLFI and Trump’s new meme coin, potentially leading to significant payouts for Trump and his family.

This latest venture into the crypto world has raised questions about the ethical implications of using political influence to promote speculative projects and enrich insiders.