Trump's memecoin gala dinner draws crypto tycoons, a basketball star and protests

His message: He was fulfilling his promise to make the U.S. the world’s “crypto capital."

“And we’re doing it. Rapidly." he said in remarks at the dinner at his golf club outside Washington, D.C., according to a recording captured by one of the attendees.

In the ballroom, a crowd of admirers cheered on Trump and the fledgling market’s ascendance since his election. Among them was the crypto billionaire Justin Sun, whose large stake of $TRUMP coins assured him a spot in Trump’s VIP reception at the event, and former basketball star Lamar Odom, who recently launched a memecoin of his own.

Outside, on a damp spring evening, protesters waved signs highlighting the unusual circumstances that brought the president and the crypto industry together: A dinner exclusively for those who bought digital coins Trump issued earlier this year. “Stop Crypto Corruption," one sign read. Sen. Jeff Merkley (D., Ore.) joined protesters’ chants, calling the dinner “the Mount Everest of Corruption," according to video clips on X.

Unveiled in late April, the dinner was thrown open to the 220 largest holders of the memecoin. The 25 largest holders were eligible for a short VIP reception with Trump before the dinner. It was unclear if all of the spots at the dinner were taken. At least one guest said he dropped out because of fears for his security if his identity were unmasked, a common concern among the crypto crowd. Guests also had to pass background checks.

Government watchdog groups have said the dinner could potentially violate federal rules against soliciting gifts. Some $148 million worth of $TRUMP was purchased by investors to win spots at the dinner, according to Inca Digital, a blockchain analytics firm.

An affiliate of the Trump Organization, the president’s family business, and a firm registered by entrepreneur Bill Zanker, who has previously done business with Trump, own 80% of the supply of the memecoin. At current prices, that stash of $TRUMP is worth more than $10 billion, at least on paper. Insiders have also earned over $300 million by collecting fees from trading in the memecoins, according to Chainalysis, a blockchain analytics firm.

At a news conference earlier on Thursday, White House press secretary Karoline Leavitt said “the president is attending it in his personal time." She denied that his dinner would trigger any ethics violations because “all the president’s assets are in a blind trust which is managed by his children."

Crypto is riding high under the Trump administration. Bitcoin hit a record high of above $111,000 on Thursday, and Congress is expected to advance legislation favored by the industry.

Addressing the audience, Trump took a potshot at the Biden administration, which was deeply unpopular with the crypto industry. Biden’s regulators pursued lawsuits against crypto firms in an effort to force them to comply with existing rules governing securities, pushing some companies to go overseas or avoid certain types of businesses in the U.S.

“The Biden administration persecuted crypto innovators, and we’re bringing them back into the U.S.A. where they belong," Trump told the audience, according to the recording.

His remarks then meandered through more familiar terrain. Transgender athletes. The Jan. 6 riot. The development of his golf club. “Pretty nice view, nice place," he said, according to another recording of his speech. “Who owns this place?" he joked, drawing a laugh.

Reporters weren’t allowed into the event, but the crypto fans inside, many of them prolific posters on social media, were quick to broadcast their attendance from their phones.

“It’s really nice to be here today with, like, everyone in crypto," Sun, the billionaire and top holder of $TRUMP, said in a video of himself posted on X that he recorded at the event, with a presidential podium in the background.

During the Biden administration, the Securities and Exchange Commission sued Sun for alleged market manipulation. The agency moved to resolve the lawsuit after Trump took office.

Other crypto luminaries who showed up at the dinner included Jeffrey Zirlin, a member of the team behind Axie Infinity, a once-popular online game that rewarded its players in digital currencies. Hackers stole more than $500 million worth of crypto from Axie in 2022.

Odom, the former pro basketball player who had a long stint with the Los Angeles Lakers, attended the dinner after launching an “anti-addiction" memecoin earlier this month. “I’m fired up," he posted on X ahead of the dinner.

Many attendees were foreigners, such as Australian crypto entrepreneur Kain Warwick and Evgeny Gaevoy, the U.K.-based head of crypto trading firm Wintermute. Gaevoy turned up at the dinner just days after his firm expanded into the U.S. and established a New York office.

“Attending this event shows just how far crypto has come from challenging the elite to now building alongside them, driving digital assets into the heart of mainstream finance," said Vincent Liu, chief investment officer at Taiwan-based crypto trading firm Kronos Research, who also attended the dinner.

Some 100 protesters lined both sides of the street outside the entrance to the golf club, shouting “Shame, shame, shame" as guests arrived. Signs featured slogans such as “America isn’t for sale."

Memecoins are speculative tokens whose value is largely based on the fleeting popularity of internet memes. They often enrich insiders and opportunistic traders who buy early and sell before the inevitable crash.

Launched just before Trump’s inauguration, $TRUMP quickly soared in value before crashing. Blockchain data suggests that a small number of savvy traders made millions of dollars on the coin by buying early and selling near the peak, while hundreds of thousands of smaller investors lost money. The memecoin’s price is down around 80% from its January peak.

A few minutes past 8 p.m., the president left the golf club. His crypto admirers stayed behind, watching as he boarded a helicopter nearby. Some said they planned to tour the White House on Friday afternoon.

After his remarks, the first course was served: Trump Organic Field Green Salad.

Write to Alexander Osipovich at alexo@wsj.com and Vicky Ge Huang at vicky.huang@wsj.com