Is the Trump memecoin securities-compliant...and does it have illegal elements? The Trump family's memecoin has hit the altcoin market hard.

Alexandra Andhov, a law professor at Auckland, wrote in a Forbes article that “the memecoin TRUMP issued by US President-elect Donald Trump may be considered a security under the lower test (the test for the application of securities laws).” The lower test presents four criteria for securities: monetary investment, joint business, expectation of investor's profit, and efforts of others. Professor Andhrov said, “The fact that the public can purchase tokens with fiat money or other cryptocurrencies makes it a ‘financial investment.’” In addition, the fact that the Trump family-affiliated companies hold 80% of the token supply and that the supply is expected to expand from 200 million to 1 billion over the next three years suggests that this is a joint venture in which investor funds are tied to the project's performance. Finally, he criticized that “the token was launched four days before Trump's inauguration, there were dramatic price fluctuations, and the Trump family was actively involved in the token's supply and marketing, which meets the remaining conditions.” He then pointed out that “the SEC's approach to cryptocurrency regulation will change significantly after Trump takes office, but even so, existing securities laws cannot be ignored.”

Meanwhile, Ublockchain diagnosed that “the issuance of memecoins by the family of US President-elect Donald Trump has caused other altcoins to generally decline.” He also explained that “Artificial Intelligence (AI) Agent Theme Coin fell 12.08%, DeFi AI fell 14.90%, DeFi fell 6.94%, Layer 1 fell 6.99%, Memecoin fell 7.53%, and Layer 2 fell 10.59%.” Earlier, President-elect Trump issued his meme coin TRUMP and his wife, Melania, issued MELANIA.