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Stephen Findeisen, better known as Coffeezilla on YouTube, took a critical look at Donald Trump’s recent launch of a meme coin, which he dubbed a “historic grift.”
Indeed, President-elect Trump published a Truth Social post about the meme coin. He also issued a statement on X, formerly Twitter.
Phantom, the non-custodial cryptocurrency wallet backed by Sequoia and Andreessen Horowitz, verified that it’s real. Still, Findeisen wishes it weren’t true.
“I hope to everything that I will wake up and find I’ve been deep faked,” he said.
The YouTube sleuth, known for his scathing exposé videos aimed at alleged crypto scams (i.e. Hawk Tuah Girl and Andrew Tate), fears that the latest crypto project from Trump is aimed solely at enriching insiders while exploiting the President-elect’s MAGA supporters just less than two days before the inauguration.
Below are the key takeaways from Findeisen’s breakdown:
- Launch of Trump Meme Coin: Trump — who already launched the World Liberty Financial (WLFI) toekn with his sons last year — unveiled a new meme coin, dubbed “Trump Coin.” Findeisen criticizes the timing, suggesting it was a cynical attempt to profit off the political hype ahead of the swearing-in ceremony on Jan. 20.
- Market Cap & Fees: The meme coin currently boasts a market cap of $13 billion. Despite this, Findeisen points out that its intrinsic value is zero. Additionally, over $12 million has been made in fees just from trading volume, highlighting the coin’s speculative nature.
Source: CoinGecko
- Lack of Transparency: 80% of the coin is owned by Trump’s camp, Findeisen points out. Only 20% of ‘Official Trump’ is available to the public. Of that 20%, 10% went to the liquidity pool, and another 10% went to public allocation. The allocation breakdown for the remaining 80% is notably vague, with obscure labels like “CIC Digital 1, 2, 3, etc.”
- Lock-up Periods: The 80% owned by insiders will gradually be unlocked over a three-year period, with different groups experiencing varying lock-up durations of three to 12 months. This unlock will coincide with Trump’s presidency, which he believes adds a layer of exploitation.
- Losses Likely: The real money will be made by insiders who knew about the launch in advance and got in at the ground level, Findeisen explains. The remaining public will likely lose money.
You might also like: MrBeast, Andrew Tate and 8 other celebrities with messy crypto promotions
Criticism of insider profits
Findeisen calls out the hypocrisy of using the presidency to promote a meme coin, stating that it’s an unprecedented conflict of interest.
“To say it’s a conflict of interest is like insulting all the people who’ve had conflicts of interest before,” Findeisen says. “It’s so crazy to use the presidency in this manner to pump a meme coin to enrich yourself, insiders, and basically everyone but your standard base.”
Findeisen also speculates that the Trump camp might backtrack or downplay their involvement once the backlash grows.
Watch the full video below.
Even before the launch of Trump’s meme coin, the Trump family’s involvement in the crypto world has already raised ethical questions, according to the New York Times.
The family helped launch WLFI, a crypto platform for borrowing and lending, last fall. Though they aren’t owners or officers, the Trump family has a deal to be paid for promoting it.
The company gained traction after crypto entrepreneur Justin Sun joined the venture as an advisor and purchased $30 million in tokens.
The company claims to have 20,000 token holders, but the tokens are not resellable, meaning they hold no immediate value. Despite this, purchases made by unpublicized investors should generate millions of dollars in payments to the Trump family.
Trump, Bitcoin and Ethereum
Trump has already shown his influence in the crypto market, notably claiming credit when Bitcoin (BTC) surpassed $100,000 after he nominated Paul Atkins as chair of the Securities and Exchange Commission.
Trump also owns up to $5 million in Ethereum (ETH), which has also surged in value since the election, the New York Times reported.
Under Atkins, the SEC will likely to introduce rules that could boost the value of cryptocurrencies in general, specifically tokens related to World Liberty Financial and Trump’s official meme coin.
These changes could potentially lead to hundreds of millions in additional payouts for Trump and his family.
Read more: Coffeezilla vs. Andrew Tate: YouTuber blasts influencer for shifting crypto stance from critic to promoter
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