What Happened?
Trump used a podium with the presidential seal at a private dinner, an act that allegedly violates federal law. While the White House claims this was Trump’s personal conduct, his arrival via military helicopter and comments on current politics have intensified concerns about conflicts of interest.
To attend this “exclusive” dinner, investors spent nearly $150 million purchasing $TRUMP meme coins, with the top 25 holders enjoying privileges like private meetings with Trump and limited-edition expensive watches. However, many guests who did not make the top 25 complained about a poor dinner experience, citing bad food, Trump’s brief appearance, and lack of interaction.
The launch of the $TRUMP meme coin and this dinner marks his deeper involvement in the cryptocurrency space. Notably, Justin Sun, who has faced SEC lawsuits for alleged issues like “manipulating ### trading,” is not only the largest holder of $TRUMP meme coins but also closely connected to the Trump family’s cryptocurrency financial platform, World Liberty Financial. His high-profile attendance further exacerbated concerns about regulatory issues and ethical standards in the industry.
What Can You Gain from the Meme Coin Dinner?
On May 22, former President Donald Trump held a much-anticipated meme coin dinner, attracting top holders of the Trump meme coin from around the world. This event not only provided a luxurious experience but sparked widespread discussions about political donations, foreign influence, and investor rights.
According to data from cryptocurrency intelligence firm Inca Digital, investors collectively spent around $148 million to secure seats at the dinner, with the top 25 holders contributing over $111 million.
These top buyers enjoyed a series of exclusive benefits:
- Private VIP Reception: The top 25 holders were granted a private VIP reception with Trump.
- Limited Edition Trump Tourbillon Watch: Four of the largest investors received a limited edition Trump tourbillon watch valued at $100,000.
- Lavish Dinner: The dinner menu featured organic garden salad, filet mignon, pan-seared halibut, garlic mashed potatoes, and vegetable medley, with a warm 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 cryptocurrency entrepreneur and billionaire Justin Sun, with a $18.5 million meme coin wallet, became the largest holder of Trump coins and received public recognition at the dinner. Sun is also the largest public investor and advisor of the Trump family’s crypto platform, World Liberty Financial. He not only shared videos of his attendance at the dinner on social media but also published footage of his visit to 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. Last year, he faced a lawsuit from the U.S. Securities and Exchange Commission (SEC) for allegedly “orchestrating the unregistered issuance and sale of cryptocurrency securities, manipulating ### trading, and illegal touting.”
However, just over a month after Trump took office, there was a complete shift in federal regulatory approaches to cryptocurrencies, with the SEC requesting to pause the case in late February.
Guest Reactions at the Dinner
Although the dinner was touted as “the most unique invitation in the world,” some attendees, particularly those outside the top 25, expressed disappointment with the event. Nicholas Pinto, 25, had his father drive him in a Lamborghini to the dinner but stated that the food was terrible, and aside from water and Trump’s wine, no other drinks were offered. Trump only stayed for 23 minutes, briefly reiterating some outdated cryptocurrency points before leaving by helicopter without taking pictures with or answering questions from holders outside the top 25.
Additionally, there were no RFID bags used to secure phones, and security measures were lax, with many guests checking their phones during dinner to monitor coin price fluctuations. Pinto noted, “In fact, many people don’t even hold this coin anymore. They were checking their phones during dinner to see if the coin price had fluctuated.”
Concerns and Legislative Actions from Democratic Lawmakers
The dinner immediately raised alarms among Democratic lawmakers and regulatory agencies. Senate Democrats held a press conference on the same day to condemn Trump’s cryptocurrency activities as a “corrupt extravaganza.”
Trump could face scrutiny for using the presidential seal at the meme coin investors’ dinner, potentially violating federal law. U.S. law prohibits the use of the presidential seal in any manner that could suggest government approval or sponsorship, with violators facing fines or up to six months in prison.
Although White House Press Secretary Karoline Leavitt claimed Trump’s actions were personal and “this was not a White House dinner,” Trump’s arrival via military helicopter and his praise for attendees while criticizing the Biden administration’s stance on cryptocurrencies raised eyebrows. This is not the first time Trump has used the presidential seal in his private ventures; Forbes previously reported that the seal was used as a golf ball marker at several of his golf clubs.
The dinner has garnered significant attention from lawmakers. 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 in the U.S. Constitution. According to the emoluments clause, the U.S. president may not accept any gifts from foreign entities without Congressional approval.
Profit and Loss Situations of the Meme Coin
Data shows that since its launch in January, profits from Trump coins have primarily flowed to large investors. As of May 8, over 60 large wallets have gained nearly $1.5 billion, with $48 million in profits realized after Trump announced the dinner on social media.
However, the situation is not optimistic for the vast majority of retail investors. Approximately 600,000 small wallets have incurred losses of $3.87 billion, with $117 million in losses occurring after the dinner announcement.
After the dinner, the price of Trump coins plummeted 16% on the 23rd, indicating a complex market reaction to the event. Although Trump’s cryptocurrency business continues to expand, including cryptocurrency exchanges, stablecoins, Bitcoin mining operations, and digital asset ETFs, the political controversies and regulatory challenges it brings are increasingly prominent.
This meme coin dinner was not only a social gathering but also a reflection of the intertwining of cryptocurrency and politics, conflicts of interest, and a regulatory vacuum. The subsequent developments will continue to attract attention from various sectors.
References: Reuters, CNBC, Cointelegraph