Despite claims of rigorous listing procedures, major crypto exchanges — including Coinbase — rushed to list President Donald Trump’s $TRUMP memecoin in record time, raising concerns about investor protection, transparency, and regulatory integrity.
Coinbase, which prominently states it applies a “rigorous” vetting process before allowing any new token to trade, listed $TRUMP just three days after adding it to its roadmap — faster than almost any othermemecoin in its history. Eight of the ten largest exchanges listed the token within 48 hours of its launch in January, a stark contrast to the average 129-day listing timeline for other large memecoins like Pepe, Bonk, Fartcoin, and dogwifhat, a Reuters analysis found.
Unlike traditional cryptocurrencies, memecoins often have no intrinsic value and are prone to extreme volatility. $TRUMP followed the pattern: after hitting an all-time high of $75.35 on April 19—just two days after launch—it plummeted to under $10, leaving many investors with steep losses.
Adding to investor concerns, 80% of $TRUMP’s token supply was reportedly controlled by Trump and his close partners. Experts typically view such a high concentration as a red flag due to the risk of price manipulation or “dumping” by insiders. Despite that, several exchanges, including MEXC and Bitget, acknowledged the red flag but said strong market demand compelled them to proceed.
Bitget CEO Gracy Chen said Trump’s public promotion of the coin helped justify its quick listing. “The fact that he’s the president of the United States should kind of solve the compliance issue,” she stated.
Coinbase’s Chief Legal Officer confirms
Coinbase’s Chief Legal Officer, Paul Grewal, insisted the exchange followed its standard process, albeit with “many people working over the weekend” to get it done quickly. He emphasized the coin was labeled “experimental” to warn users of its risks.
The political implications are significant. Critics argue that exchanges, eager to capitalize on the buzz surrounding the sitting president’smemecoin, may have prioritized profits over investor protection. Former SEC crypto advisor Corey Frayer called the situation “a conflict of interest waiting to happen,” pointing out that “the president controls who oversees your business and how they enforce the law.”
Since taking office, President Trump has positioned himself as the “crypto president,” leading to a regulatory U-turn. The SEC, under his administration, has paused enforcement actions and declared thatmemecoins are not securities—benefiting both the exchanges and Trump’s ventures.
Reuters’ data shows $TRUMP generated more than $172 million in trading fees across the ten exchanges, while analysis by Bubblemaps revealed a staggering disparity in profits: 45 wallets cleared $1.2 billion in gains, while over 700,000 wallets lost $4.3 billion collectively.
Some exchanges, like Coinbase, blocked access to the token for New York residents due to the state’s strict regulations. Others acknowledged they relaxed standards due to shifting market dynamics.
Memecoins
As memecoins continue to blur the line between hype and financial risk, the $TRUMP case underscores the tension between regulation, politics, and profit in the rapidly evolving crypto landscape.
