Donald Trump, the President-elect of the United States, has introduced his cryptocurrency, rapidly increasing its market capitalization to several billion dollars.
The launch of the meme coin, $Trump, coincides with his upcoming inauguration on Monday, marking his entry as the 47th president of the United States.
The initiative was orchestrated by CIC Digital LLC, a subsidiary of the Trump Organisation, known for its past ventures in marketing Trump-branded footwear and fragrances.
Meme coins serve as a tool for generating buzz around viral internet trends or movements. However, they are characterized by a lack of intrinsic value and exhibit significant volatility as investments.
On Saturday afternoon, shortly after its launch, the market capitalization of $Trump soared to nearly $5.5 billion (£4.5 billion), as reported by CoinMarketCap.com.
CIC Digital LLC and Fight Fight Fight LLC, a newly established company in Delaware, hold an 80% stake in the tokens. The potential financial gains for Trump from the venture remain uncertain.
The latest official meme featuring Trump is now available for fans and followers. Now is the moment to honor all that we represent: SUCCESS! On Friday night, Trump took to his social media platform, Truth Social, to announce the launch of the meme coin.
The issuance of digital tokens has reached approximately 200 million, with an additional 800 million set to be released over the next three years, according to information provided on the coin’s official website.
The website stated, “This Trump Meme honours a leader who remains steadfast, regardless of the challenges faced.”
The statement featured a disclaimer clarifying that the coin is “not intended to be, or the subject of” an investment opportunity or a security. It further emphasized that the coin was “not political and has nothing to do with” any political campaign, political office, or government agency.
Critics have leveled accusations against Trump, alleging that he has exploited his position as president for personal financial gain.
“Trump’s ownership of 80 percent and the timing of the launch just hours before the inauguration raises concerns of predatory behaviour, and many individuals are likely to suffer as a result,” stated Nick Tomaino, a venture capitalist in the cryptocurrency sector, in a recent social media update.
Digital tokens have gained a reputation for attracting speculators who leverage hype to inflate their value, only to sell at peak market prices. This practice often leaves latecomers facing significant losses as prices subsequently plummet.
Investors in cryptocurrency are optimistic that the Trump administration will provide a favorable environment for the industry.
Regulators under President Joe Biden have raised alarms regarding potential fraud and money laundering, leading to legal action against cryptocurrency exchanges.
Former President Trump, who had previously expressed reservations about cryptocurrency, made a bold statement at a Bitcoin conference in Nashville last year, declaring that America would become “the crypto capital of the planet” upon his return to Washington.
Last year, Erik and Donald Jr, the sons of a prominent figure, unveiled their cryptocurrency venture.