Social media giant TikTok has refuted claims that its Chinese owners are purchasing ‘Trump Coins’, the official memecoin linked to President Donald Trump. The platform’s official policy account took to X to address the controversy, labeling the accusations as “patently false and irresponsible”.
The strong denial comes in response to statements made by California Democrat Representative Brad Sherman, who alleged that TikTok’s parent company, ByteDance, intended to buy $300 million worth of the TRUMP memecoin.
“Congressman, claiming that the owners of TikTok are buying ‘Trump Coins’ doesn’t even accurately reflect a letter you signed last month,” the TikTok Policy account posted, highlighting what it perceived as inconsistencies in Sherman’s remarks.
AI-enhanced content for TikTok
Sherman’s allegations reportedly stem from reports concerning GD Culture Group, a Nasdaq-listed technology company that produces AI-enhanced content for TikTok, suggesting its plans to invest $300 million in TRUMP memecoin and Bitcoin. While GD Culture Group operates significantly within the TikTok ecosystem, it has no known formal ties to TikTok or ByteDance.
Critics have voiced skepticism regarding both the accuracy of Sherman’s crypto claims and the rationale behind such a substantial investment in a memecoin by a major corporate entity.
The TRUMP memecoin, launched shortly before Trump’s second presidential inauguration in January, operates on the Solana blockchain and has seen its value fluctuate significantly. Approximately 80% of its supply is reportedly controlled by the Trump Organization and its affiliates, allowing the creators to earn fees from trading activities.
