TikTok has firmly rejected allegations that it purchased $300 million worth of TRUMP memecoins in an attempt to influence U.S. President Donald Trump.

On June 19, the company published a statement in response to the claims on X (previously known as Twitter), characterizing the accusation as false and irresponsible and having been made with the intention of distorting its activities.

TikTok Rejects Sherman’s Token Allegations

The rejection was following the U.S. Congressman Brad Sherman alleging that ByteDance, the parent company of TikTok, bought a substantial amount of the TRUMP token.

Sherman described the reported purchase as a straight financial gain to the president, pointing out that it could technically qualify as a bribe.

TikTok rejected Sherman’s statement, claiming that his understanding of a recent letter was misguided. This company once again stressed that no such transaction was made and called the allegations absolutely untrue.

The dispute arises because the White House signed a new Executive Order giving TikTok an extension of 90 days to sell its U.S. operations or face a nationwide ban. The validity of this second extension has been challenged by critics who have pointed out that the original act only permitted a single penalty period extension.

TRUMP Token Linked to Conflict of Interest

In the meantime, the TRUMP memecoin becomes more and more questioned. Advocated by Trump family members, the token has attracted attention of industry analysts and ethics watchdogs due to the perceived conflicts of interest.

There is caution against an incumbent president having a direct or indirect financial interest in cryptocurrencies due to the ethical and legal issues of transparency and unfair influence.

Numerous politicians and charity groups have expressed concerns regarding the possibility of political power being corrupted into selfish benefit, often in assets with little to no instrumental value beyond their speculative importance.

Market performance of the token has not been impressive as well. Based on current trading statistics, the TRUMP memecoin has been down by more than 34 percent in the last one month. At the time of writing, it was valued at around $9.43, way lower than its best record of $44.28 in January.