Trump Meme Coin Extends Decline As Consumer Watchdog Calls for Federal Probe: Retail Braces For Bigger Drop

Public Citizen stated that federal law strictly regulates payments to government officials and bars gift solicitation in its complaint to the DOJ and OGE.

The Official Trump token (TRUMP) slid another 6.2% in the past 24 hours, extending its losses since President Donald Trump’s inauguration. The decline follows increased scrutiny over the token’s legality and ethical implications.

Consumer advocacy group Public Citizen on Wednesday filed a complaint with the Department of Justice (DOJ) and the Office of Government Ethics (OGE), urging an investigation into whether Trump violated federal laws prohibiting the solicitation of gifts in connection with his official capacity.

The watchdog raised concerns that, due to the pseudonymous nature of cryptocurrency transactions, foreign state actors could potentially be "gifting the president by way of purchasing a Trump meme," calling for authorities to examine potential conflicts of interest.

The Trump-themed token has drawn criticism from both retail investors and political analysts, with concerns that its existence presents a conflict of interest for a sitting U.S. president.

A recent Stocktwits poll even suggested that the launch of Trump's meme coin has increased skepticism toward cryptocurrency among investors.

“Federal law strictly regulates payments to government officials, including gifts,” Public Citizen's Bartlett Naylor and Dr. Craig Holman wrote in the letter. 

“Although the president may receive gifts, he may not ‘solicit’ gifts,” they added, emphasizing that while exemptions exist, none allow for the solicitation of purchases for personal financial gain.

The DOJ has yet to comment on whether it will open an investigation.

On Stocktwits, retail sentiment around the TRUMP token continues to be ‘extremely bearish’ accompanied by ‘low’ levels of chatter. 

An overwhelming number of users are expecting the meme coin to drop to $10.

The high-profile launch of Trump’s Solana-based meme coin coincided with the Crypto Ball in Washington, held on the Friday night before his Jan. 20 inauguration.

Initial excitement pushed the TRUMP token’s valuation above $75 billion at one point, briefly surpassing Dogecoin (DOGE) as the largest meme coin. However, the rally was short-lived.

The introduction of First Lady Melania Trump's own meme coin, MELANIA, triggered a steep selloff in TRUMP, accelerating its decline. 

According to CoinGecko data, TRUMP and MELANIA have plunged approximately 76% and 88%, respectively, from their peaks.

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