What happened?
Trump used a podium bearing the presidential seal at a private dinner, an act that allegedly violates federal law. Although the White House claims this was Trump’s personal conduct, his arrival by military helicopter and his comments on political affairs at the event deepened public concern about potential conflicts of interest.
To attend this “exclusive” dinner, investors lavishly spent nearly $150 million purchasing $TRUMP meme coins, with the top 25 holders enjoying privileges such as private meetings with Trump and limited edition expensive watches. However, many guests who did not make the top 25 complained about the lackluster experience, citing poor food, a brief appearance by Trump, and minimal interaction.
The launch of the $TRUMP meme coin and this dinner signify his deeper involvement in the cryptocurrency realm. Notably, Justin Sun, who faced an SEC lawsuit for allegedly “manipulating ### exchanges,” is not only the largest holder of $TRUMP meme coins, but also closely connected to the Trump family’s crypto financial platform, World Liberty Financial. His high-profile attendance further heightened concerns about regulatory issues and ethical standards in the industry.
What can be gained from the Trump meme coin dinner?
U.S. President Donald Trump held a much-anticipated meme coin dinner on May 22, attracting top holders of the Trump meme coin from around the world. This event not only provided a lavish experience but also sparked extensive discussions about political donations, foreign influence, and investor rights.
According to data from crypto intelligence firm Inca Digital, investors collectively spent approximately $148 million for seats at the dinner, with the top 25 holders contributing over $111 million.
The top buyers enjoyed a series of exclusive benefits:
- Private VIP Reception: The top 25 holders received a private VIP reception with Trump.
- Limited Edition Trump Tourbillon Watches: Four of the largest investors were gifted limited edition Trump tourbillon watches worth $100,000.
- Sumptuous Dinner: The dinner menu featured organic garden salad, filet mignon, pan-seared halibut, garlic mashed potatoes, and vegetable medley, with a molten lava cake for dessert.
Pleasure representing @KronosResearch at Trump dinner.
Simply by holding the Trump token, individuals have an unprecedented opportunity to meet the President of the United States and hear him speak in person. Tonight’s event has uniquely brought together crypto supporters from… .
Chinese crypto entrepreneur and billionaire Justin Sun became the largest holder of Trump coins with a $18.5 million meme coin wallet and received public recognition at the dinner. Sun is also the biggest public investor and advisor for Trump family’s crypto platform, World Liberty Financial. He not only shared a video of his attendance at the dinner on social media but also posted a video of his tour of the White House Executive Office Building.
As the top holder of $TRUMP and proud supporter of President Trump, it was an honor to attend the Trump Gala Dinner by @GetTrumpMemes. Thank you @POTUS for your unwavering support of our industry! #MakeCryptoGreatAgain .
Sun’s attendance at the event sparked controversy, as he was sued by the U.S. Securities and Exchange Commission (SEC) last year for allegedly planning the unregistered issuance and sale of crypto asset securities, manipulating ### exchanges, and illegal touting.
However, just over a month after Trump’s inauguration, federal agencies underwent a 180-degree turn in their regulatory approach to cryptocurrencies, with the SEC requesting a pause in the case in late February.
Guest Reactions at the Dinner
Despite the dinner being touted as “the most unique invitation in the world,” some participants, especially those outside the top 25, expressed disappointment with the event.
25-year-old Nicholas Pinto had his father drive him to the dinner in a Lamborghini but stated that not only was the food terrible, but there were no drinks offered other than water and Trump’s wine, and Trump only stayed for 23 minutes. He briefly reiterated some outdated cryptocurrency points and then left by helicopter, without taking photos with or answering questions from holders outside the top 25.
Moreover, no RFID bags were used to lock up phones, and security measures were lax, with many people checking their phones during dinner to monitor cryptocurrency price fluctuations. Pinto remarked, “Many people had already stopped holding those coins. They were looking at their phones during dinner, wanting to know if the coin prices had fluctuated.”
Concerns from Democratic Lawmakers and Legislative Push
The dinner immediately raised alarms among Democratic lawmakers and regulatory agencies. Senate Democrats held a press conference on the day of the dinner, condemning Trump’s cryptocurrency activities as a “corrupt festivity.”
Trump may face scrutiny for using a podium with the presidential seal at the dinner for $TRUMP investors, which could be a violation of federal law. U.S. law stipulates that the presidential seal cannot be used in any manner that may imply government approval or sponsorship, with violators facing fines or up to six months in prison.
While White House Press Secretary Karoline Leavitt claimed Trump’s actions were personal and “this was not a White House dinner,” Trump arrived at the club by military helicopter and praised attendees while criticizing the Biden administration’s cryptocurrency stance. This is not the first time Trump has used the presidential seal in his private ventures; Forbes previously reported that the seal was used at several of his golf clubs as a golf ball marker.
The dinner has elicited significant attention from Congress. On May 22, 35 House members sent a letter to the Department of Justice requesting an investigation into the meme coin dinner to determine if it violated federal bribery laws or the foreign emoluments clause of the U.S. Constitution. The emoluments clause prohibits the U.S. President from accepting any gifts from foreign entities without congressional approval.
Profit and Loss Situation of Meme Coins
Data shows that since the launch of Trump coin in January, profits have primarily flowed to large investors. As of May 8, over 60 large wallets have garnered nearly $1.5 billion in profits, with $48 million in profits realized after Trump posted about the dinner on social media.
However, the outlook for the vast number of retail investors is bleak. Approximately 600,000 small wallets have incurred losses of $3.87 billion, including $117 million in losses occurring after the dinner announcement.
Following the event, the price of Trump coin plummeted by 16% on the 23rd, reflecting a complex market reaction to the event. While Trump’s cryptocurrency endeavors continue to expand, including crypto exchanges, stablecoins, Bitcoin mining businesses, and digital asset ETFs, the associated political controversies and regulatory challenges are increasingly prominent.
This meme coin dinner was not just a social event but also a reflection of the intertwining of cryptocurrency with politics, conflicts of interest, and regulatory vacuums, with its subsequent developments likely to remain under scrutiny from various sectors.
Reference materials: Reuters, CNBC, Cointelegraph