COINTIKA.COM - TikTok denies purchasing $300 million in TRUMP memecoins to influence President Trump. "The claims are false and irresponsible, and intended to harm our reputation," stated TikTok in a June 19th public statement.
The accusation arose from U.S. Congressman Brad Sherman's suggestion that ByteDance, TikTok's parent company, made a significant TRUMP token purchase. Sherman implied this could financially benefit President Trump, who reportedly launched the token at no cost. TikTok vehemently denied this, attributing the claim to a misunderstanding of a previous letter. The company characterized the Congressman's statement as a misleading attempt to distort their actions.
These allegations surface amidst heightened tensions surrounding a new executive order giving TikTok 90 additional days to divest its U.S. operations, failing which could result in a ban. Critics question the legality of this extension, arguing it exceeds Congressional authorization and raises concerns about potential abuse of power.
The TRUMP memecoin itself, backed by President Trump and his family, is facing intense scrutiny. Experts raise ethical concerns about a sitting president's association with a digital token, citing potential for hidden profits, lack of transparency, and foreign interference risks. Calls for investigation into Trump's cryptocurrency involvement are growing, with many arguing that public officials should avoid association with tokens of unclear value or purpose. Senator Jon Ossoff even voiced support for impeaching President Trump over this connection. Currently, the TRUMP memecoin's price is significantly down, trading at approximately $9.37 according to CoinMarketCap, a considerable drop from its January high of $44.28, likely fueled by the escalating political and ethical controversies.
