TikTok has publicly pushed back against claims that its Chinese owners are buying “Trump Coins,” the official meme coin linked to President Donald Trump.
Key Takeaways:
TikTok has denied accusations that its owners are buying Trump’s official meme coin. Representative Brad Sherman claimed a $300M Trump Coin purchase tied to TikTok, citing GD Culture Group. Critics questioned both Sherman’s crypto claims and the logic behind the alleged meme coin investment..The social media platform’s official policy account addressed the controversy on Thursday through a post on X, calling the accusations “patently false and irresponsible.”
The remarks came in response to statements by California Democrat Brad Sherman, who alleged that TikTok’s parent company had plans to purchase $300 million worth of the Trump (TRUMP) meme coin.
“Congressman, claiming that the owners of TikTok are buying ‘Trump Coins’ doesn’t even accurately reflect a letter you signed last month,” the platform responded, highlighting inconsistencies in Sherman’s comments.
Trump Grants TikTok Third Extension Amid Rising Political Tensions
The allegations emerged shortly after Trump signed an executive order granting TikTok a 90-day extension to find a U.S. buyer, marking the third such delay in the ongoing standoff over national security concerns tied to the app’s Chinese ownership.
Sherman, a vocal critic of both TikTok and cryptocurrencies, cited reports involving GD Culture Group, a Nasdaq-listed firm that produces AI-driven content on TikTok.
The company reportedly announced plans in May to invest $300 million into both TRUMP and Bitcoin. Despite its presence on the platform, GD Culture has no formal ties to TikTok or its parent company ByteDance.
Sherman characterized the meme coin investment as a “$300 million bribe” to Trump, asserting that the coin was created “at no cost.”
Critics swiftly challenged both the legal foundation of his TikTok-related claims and the economic logic behind the meme coin remarks.
The backlash online was swift. Some users questioned Sherman’s credibility and accused him of pushing political narratives.
Others cast doubt on the feasibility of creating a cryptocurrency without incurring development or liquidity costs.
Sherman has long campaigned against the crypto sector, having previously called for a total ban on digital assets.
In contrast, Trump and his allies have recently embraced crypto, advocating for stablecoins as tools to reinforce the U.S. dollar’s global position.
Trump Continues to Capitalize on Crypto Market Momentum
Meanwhile, Donald Trump continues to capitalize on crypto market momentum.
According to financial disclosures released last Friday, the former president pulled in $58 million from crypto ventures in 2024, primarily through WLFI token sales.
That total trailed only his hospitality income and is expected to climb further in 2025 with an anticipated $390 million token sale and gains from his meme coin, launched in January.
His involvement in Bitcoin mining, tokenized assets, and digital ETFs is raising concerns about potential conflicts of interest.
Critics have pointed out that some of his businesses have seen tailwinds from favorable policy decisions during his time in office.
As reported, the SEC has approved Trump Media and Technology Group’s (TMTG) registration statement tied to a $2.3 billion Bitcoin treasury initiative.
The June 13 filing covers 85 million shares, including 29 million linked to convertible notes.
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