TikTok, the Chinese-owned social media platform, has firmly denied explosive allegations by U.S. Representative Brad Sherman that the platform’s Chinese owners invested $300 million in a cryptocurrency tied to former President Donald Trump in an effort to influence policy and avoid a nationwide ban.
In a statement issued Friday via its official policy account on X, the company labelled the accusation “false and irresponsible.”
“Congressman, claiming that the owners of TikTok are buying ‘Trump Coins’ is patently false and irresponsible and doesn’t even accurately reflect a letter you signed last month,” the platform said in a statement.
TikTok calls accusations false and irresponsible
The statement comes after Rep. Sherman, a Democrat from California, alleged that “the Chinese owners of TikTok have announced they are buying Trump Coins for $300 million.” He framed the alleged investment as a form of bribery intended to influence Trump, who recently delayed a previously ordered ban on the app.
President Trump’s third executive order granted TikTok a 90-day reprieve to find a U.S. buyer or face expulsion from the American market. Sherman criticised the delay, claiming it exceeds legal limits and could reflect improper influence.
He argued that the federal law permits only one extension and insisted that Trump’s postponement of the ban violates existing legislation.
Sherman also cited a May announcement from GD Culture Group, a Nasdaq-listed firm with ties to TikTok content creation, which said it planned to invest $300 million in the TRUMP memecoin and Bitcoin. He asserted that this amounted to “a $300 million bribe that goes right into his (Trump’s)pocket.”
However, no formal relationship exists between GD Culture Group and ByteDance, TikTok’s Beijing-based parent company.
Analysts believe the confusion stems from GD Culture’s focus on AI-generated content distributed on platforms like TikTok—leading to the assumption of a direct business link.
“Trump creates ‘Trump Coins’ at no cost, meaning this is just a $300 million bribe that goes right into his pocket,” Sherman alleged, further intensifying the controversy surrounding the token’s purpose and funding.
What really is TRUMP memecoin?
The cryptocurrency, officially titled TRUMP, was launched just two days before Donald Trump’s return to the White House on January 20. Trump’s own X account promoted the token as a “digital symbol” of his values and the ideals of his supporters.
Billed as a political statement rather than an investment vehicle, the token is based on the Solana blockchain, chosen for its high-speed and low-fee capabilities. With a total supply of 1 billion tokens, 200 million were made available at launch, with the remaining tokens scheduled for gradual distribution over a three-year period.
Despite not offering any groundbreaking technology, the TRUMP token quickly soared in popularity. Within 48 hours of launch, it reached over $75 per token and hit a market cap exceeding $14 billion, although it later stabilised around $40–$50 by inauguration day.
Supporters can purchase TRUMP on various decentralised exchanges and memecoin platforms such as Moonshot. Major exchanges, including Coinbase and Binance, have also announced plans to list the token to meet global demand.