Trump Coin Soars: Trump’s Cryptocurrency Sparks Market Frenzy Ahead of Inauguration.
US President-elect Donald Trump has unveiled a new cryptocurrency called $Trump, which rapidly surged in market capitalization to several billion dollars. This initiative aligns with his preparations to assume office on Monday as the 47th president of the United States.
The project, spearheaded by CIC Digital LLC—a Trump Organization affiliate—builds on the company’s history of selling Trump-branded products such as shoes and fragrances. CIC Digital LLC owns 80% of the tokens in collaboration with Fight Fight Fight LLC, a Delaware-based company established earlier this month.
Meme coins are cryptocurrencies created to amplify viral internet trends or movements. They lack inherent value and are notorious for their extreme price volatility. Despite this, $Trump has captivated investors, reaching a market capitalization of nearly $5.5 billion (£4.5 billion) just hours after its launch, as per CoinMarketCap.com.
According to the $Trump coin’s official website, 200 million tokens were initially released, with plans to issue another 800 million over the next three years. The website emphasized that the coin is not intended as an investment opportunity, a security, or a politically affiliated asset.
Trump introduced the coin on his platform Truth Social, describing it as a celebration of values like “winning.” His statement underscored the symbolism of resilience associated with the meme coin. The announcement highlighted that the project is apolitical and unconnected to any governmental agency or political campaign.
Critics have accused Trump of exploiting his presidency for financial gain. Crypto venture capitalist Nick Tomaino expressed concerns about the timing of the coin’s launch and its potential harm to investors. He remarked that Trump’s control of 80% of the tokens and the launch’s proximity to his inauguration were troubling signs of predatory practices.
Market Volatility and Risks
Speculative trading often drives meme coins, with hype inflating prices before sharp crashes. Previous examples, like the “Hawk Tuah girl” coin, highlight these risks. Investors’ hopes for favorable regulatory changes under the Trump administration may further fuel speculation, creating potential bubbles.
Trump’s stance on cryptocurrency has evolved. At a Bitcoin conference in Nashville last year, he envisioned the United States becoming “the crypto capital of the planet.” His administration has proposed measures to foster a crypto-friendly environment, including nominating crypto advocate Paul Atkins as SEC Chair and planning an executive order to establish a crypto advisory council.
Trump’s prior ventures, such as crypto trading cards generating over $4 million per release, have raised concerns about conflicts of interest. His sons, Eric and Donald Jr., launched World Liberty Financial in 2024, further intertwining the Trump family with the crypto industry. Leading crypto firms have contributed at least $10 million to Trump’s inauguration fund, intensifying scrutiny.
Finance expert Larisa Yarovaya warned that strong political endorsements of cryptocurrencies could threaten their decentralized ethos. Writing for The Guardian, she cautioned that lax regulations might leave consumers vulnerable to financial losses when speculative bubbles burst.
While $Trump has garnered significant attention and market activity, it has also reignited debates over the intersection of politics, personal gain, and cryptocurrency regulation. The long-term impact of this venture remains uncertain, with both opportunities and risks looming for investors.
