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New meme coins launched by President Trump and First Lady Melania Trump might put retail investors at risk, warns Anthony Scaramucci, founder of Skybridge Capital. Speaking to Yahoo Finance at the World Economic Forum in Davos, Switzerland, Scaramucci described the new cryptocurrency as “a gambling token,” emphasizing that while gambling and vices like alcohol and smoking are a part of society, a figure like Trump, the leader of the U.S., should be cautious with such ventures.

Retail investors, according to Scaramucci, could end up “holding the bag” with these volatile meme coins, which can be highly unpredictable. Last Friday, Trump surprised the crypto community by launching the Trump Coin (TRUMP-OFFICIAL-USD), with the slogan “Join the Trump Community. This is History in the Making!”

The Trump Coin was developed by CIC Digital, an affiliate of the Trump Organization, which owns 80% of the coin’s total supply. New tokens will be introduced gradually over the next three years, with CIC Digital and its affiliates profiting from trading revenue as the tokens are sold.

Melania Trump also entered the meme coin space with her own coin (MELANIA-USD), which debuted on the eve of Trump’s inauguration.

Scaramucci, who briefly served as White House Communications Director during Trump’s first term, is now a vocal critic of the former president and his circle. He believes the launch of these meme coins by such a significant political figure marks a major shift in how governments view cryptocurrency—possibly opening a new regulatory era. According to a digital assets analyst at Bernstein, this could signal that governments are starting to see crypto as a tool to connect with the masses.

In 2021, Skybridge launched its Bitcoin Fund to allow affluent investors a way to invest in bitcoin. Scaramucci declined to comment on a new crypto fund but mentioned that his alternative coin fund performed exceptionally well in 2024, with several hundred million dollars invested.

As for the Trump coins, they gained immense attention, with Trump Coin’s market cap reaching $73 billion in just two days, surpassing Dogecoin as the largest meme coin. However, its market cap has since fallen to $7.3 billion, while Melania Coin sits at a market cap of $732 million.

In this volatile crypto landscape, Scaramucci remains optimistic about the future of bitcoin, predicting it could hit $170,000 this year. Currently, the cryptocurrency is trading at around $109,000 after a significant surge following the election.

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