The memecoin sector is full of joke tokens offering little intrinsic value and lots of volatility, feeding criticism of the nascent industry as frivolous and risky.

Congresswoman Maxine Waters, the ranking Democrat on House Financial Services Committee, called Trump memecoin project a worst of crypto.

Memecoins have long traded in crypto markets, with Dogecoin perhaps the best-known example. Launched as a joke, the crypto has exploded in popularity over the years, with its price often riding on the whims of its backers — the best known of which is Elon Musk.