On January 18, 2025, US President-elect Donald Trump unveiled a new cryptocurrency, $Trump, which rapidly skyrocketed in market capitalisation, reaching several billion dollars in mere hours.
The launch of the meme coin comes just days before Trump’s inauguration as the 47th President of the United States, scheduled for Monday.
This bold financial move is spearheaded by CIC Digital LLC, an affiliate of the Trump Organization, which has previously ventured into branded merchandise such as shoes and fragrances.
Meme coins, like $Trump, are often associated with viral internet trends or movements. However, they typically lack intrinsic value and are notorious for their extreme volatility, making them a risky choice for investors.
By Saturday afternoon, less than 24 hours after its debut, $Trump achieved a market capitalisation of nearly $5.5 billion, as reported by CoinMarketCap.com.
The coin’s ownership structure reveals that CIC Digital LLC and Fight Fight Fight LLC, a Delaware-based entity formed earlier this month, control 80% of the tokens.
However, it remains unclear how much profit Trump himself stands to gain from this venture.
Trump announced the launch of $Trump on his social media platform, Truth Social, writing: “My NEW Official Trump Meme is HERE! It's time to celebrate everything we stand for: WINNING!”
A promotional image of the Trump coin on its website highlights its symbolic significance, portraying it as a tribute to resilience and leadership.
According to the coin’s official website, 200 million tokens have already been issued, with an additional 800 million set to be released over the next three years.
"This Trump Meme celebrates a leader who doesn't back down, no matter the odds," the website proudly declares.
Interestingly, a disclaimer on the site emphasizes that the coin is neither an investment opportunity nor a security. It also distances the cryptocurrency from any political campaign, office, or government agency.
Despite this disclaimer, critics have accused Trump of exploiting his presidency for financial gain.
Nick Tomaino, a crypto venture capitalist, expressed concerns over the coin’s launch on social media, describing it as predatory.
"Trump owning 80 percent and timing launch hours before inauguration is predatory and many will likely get hurt by it," Tomaino posted.
The cryptocurrency space has often been criticized for speculative practices, where hype drives up the value of tokens, leading to massive sell-offs that leave late investors with significant losses.
Amidst the fanfare and controversy, the $Trump coin’s launch has also drawn attention to the broader cryptocurrency industry, with many speculating on how Trump’s administration might impact the sector.
President Joe Biden's tenure saw stringent regulatory actions against crypto firms, citing concerns over fraud and money laundering.
In contrast, Trump’s rhetoric has signaled a more supportive stance.
Speaking at a Bitcoin conference in Nashville last year, Trump proclaimed that America would become "the crypto capital of the planet" under his leadership.
The Trump family’s involvement in cryptocurrency isn’t new. Last year, Trump’s sons, Erik and Donald Jr, announced their own cryptocurrency ventures, further cementing the family’s growing presence in the digital asset space.
While cryptocurrency enthusiasts hope that Trump’s presidency will bolster the industry, skeptics warn of the potential pitfalls of such ventures.
The $Trump coin has already sparked protests, with thousands taking to the streets in Washington to voice their disapproval of the venture and its implications.
As the world watches, the launch of $Trump has ignited debates about the intersection of politics, finance, and digital innovation.
Whether this meme coin proves to be a groundbreaking financial endeavor or a fleeting trend remains to be seen.
What is certain, however, is that Donald Trump has once again captured the world’s attention, this time in the rapidly evolving world of cryptocurrency.
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