$TRUMP Memecoin Back in Market's Radar Despite Blowback on Capitol Hill

Even by cryptocurrency standards, the Trump memecoin decamillionaires are an odd bunch, with most being the token's creators, who have been the biggest winners.

While that alone is beyond outrageous, according to data analytics firm Inca Digital, the people who bought the $TRUMP meme coin spent over $140 million so they could have dinner with Trump.

The announcement that the top 220 holders, as of May 12, would be invited to a banquet with the President later this week, gave the memecoin a boost on April 23. Between the announcement and May 12, the value of the memecoin increased by over 40%, partially reversing an 88% decline in the weeks preceding.

According to Inca Digital's research, the top $TRUMP memecoin holders paid between $53,500 and $16.4 million to secure one of the dinner invitations with Trump.

At the same time, even before the window closed for the dinner invite, some investors cashed out at the top. Speculation suggests that, like the winners from the first surge, both the creators and top investors have cashed out during the second rush to crypto.

A legion of aviators, bots, and ravens flocked to the $Trump coin when it was issued. The meme coin's value soared to over $14.5 billion on the first day of its launch.

However, the crypto crashed within a week to about half its value.

The decline in value was before a slew of unscrupulous cryptocurrency traders snatched almost $133 million. The winners were clearly a small list. According to analytics firm Chainalysis, 58 cryptocurrency addresses generated over $10 million trading $TRUMP.

Naturally, the token's creators have been the biggest beneficiaries. Trump Trust-owned firms CIC Digital and Fight LLC, which created the token, made over $320 million in trading fees.

Retail investors, who staked large with the expectation of substantial returns, were the worst hit. The $TRUMP memecoin proposal has been largely unsuccessful, with a few notable exceptions.

As of last week, 764,000 of the approximately 2 million cryptocurrency wallets that purchased $TRUMP had lost money trading the token.

Trump's memecoin has turned Washington against the entire industry, while the Trump family has expanded their crypto empire since the token's debut in January.

The "gala dinner" at one of the President's golf clubs near Washington, DC, hosted by Trump himself, has brought the furor around the memecoin again.

But the crypto industry now faces a severe blowback on Capitol Hill.

Trump's Crypto Involvement Sparks Washington Backlash

An important stablecoin bill went from being a sure thing to rejection last week. Senate Democrats' focus on what they saw as corruption and Trump's "conflicts of interest" led to the rejection.

They chose not to proceed with the legislation, which reflects more support for the theory that Trump's involvement in crypto is delaying laws that the industry desperately needs.

This comes at a crucial juncture for investors. The industry's euphoria was largely based on Trump's pro-crypto policies, and if he is now standing in the way of the sector's progress, several more questions are bound to be asked.

Stablecoins are privately issued digital currencies. Supporters call them "digital dollars" and compare them to shop credits that customers may find at certain stores.

Most stablecoins are "pegged," or fixed, to real-world currencies like the US dollar, as opposed to other types of cryptocurrency, such as Bitcoin, whose values vary.

The Guiding and Establishing National Innovation for US Stablecoins Act (the GENIUS Act) aims to establish a method for incorporating stablecoins into the US financial system; however, Democrats have voiced worries about Trump's connections to crypto enterprises and have urged revisions to the bill.

The GENIUS Act, a groundbreaking law supported by the cryptocurrency industry, was defeated in a procedural vote in the Senate on Thursday by a 48-49 margin , although it would have needed 60 votes to be advanced.

Senator Mark Warner (D-VA), who voted against the bill, stressed that the United States must lead the way in responsible technological advancements related to online banking.