US President-elect Donald Trump has launched his own cryptocurrency, $Trump. The coin quickly gained traction, with its market capitalization soaring to billions of dollars.
The launch was coordinated by CIC Digital LLC, an affiliate of the Trump Organization. Previously, the organization has sold Trump-branded products, including shoes and fragrances, which set the stage for this new venture.
Meme Coin with Volatile Value
$Trump is a meme coin, designed to capitalize on viral internet trends. However, like most meme coins, it lacks intrinsic value and is known for its extreme volatility. Within just hours of its launch, $Trump’s market capitalization reached nearly $5.5 billion, according to CoinMarketCap.com.
Ownership and Token Release
CIC Digital LLC and Fight Fight Fight LLC own 80% of the tokens. According to the coin’s website, 200 million tokens have been issued so far, with an additional 800 million set to be released in the next three years.
Trump’s Announcement
Trump made the announcement via his social media platform, Truth Social. He shared, “My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING!”
Disclaimer on Investment Intent
The website includes an important disclaimer. It emphasizes that the coin is “not intended to be, or the subject of” an investment opportunity or security. Moreover, it clarifies that the coin is “not political and has nothing to do with” any political campaign.
Critics Accuse Trump of Exploitation
However, critics have raised concerns. Crypto venture capitalist Nick Tomaino remarked, “Trump owning 80 percent and timing launch hours before inauguration is predatory and many will likely get hurt by it.”
Speculative Nature of Meme Coins
As a result, meme coins like $Trump are notorious for their speculative nature. They often experience an inflated value due to hype, only to leave late investors with significant losses once the price inevitably crashes.
Impact of the Trump Administration on Crypto
On a broader scale, cryptocurrency investors are hopeful that Trump’s administration will create a more favorable environment for the industry. Under President Biden, regulatory crackdowns on crypto companies have intensified, focusing on concerns over fraud and money laundering.
Trump’s Evolving Stance on Crypto
Interestingly, Trump’s stance on cryptocurrency has evolved. Although he was previously skeptical, he expressed support at a Bitcoin conference last year, stating that America would become “the crypto capital of the planet” once he returns to Washington.
Trump’s Sons Enter Crypto Market
In addition, Trump’s sons, Erik and Donald Jr, ventured into the crypto market last year with their own project, further expanding the Trump family’s involvement in the industry.