Trump launches meme coin, $TRump days before return to White House
U.S. President-elect Donald Trump launched his own cryptocurrency, which quickly surged into billions of dollars in market capitalization.
As he prepares to be inaugurated as the 47th president of the United States on Monday, he launched the meme coin $Trump.
The venture is coordinated by CIC Digital LLC, a Trump Organization affiliate that has previously sold Trump-branded shoes and fragrances.
Meme coins are used to build popularity for viral internet trends or movements, but they lack intrinsic value and are extremely volatile investments.
By Saturday afternoon, hours after publication, $Trump had a market capitalization of nearly $5.5 billion (£4.5 billion), according to CoinMarketCap.com.
CIC Digital LLC and Fight Fight Fight LLC, which was incorporated in Delaware earlier this month, own 80% of the tokens. It’s unclear how much money Trump might make from the venture.
“My new official Trump meme is here! It’s time to celebrate everything we stand for: Victory!” Trump wrote Friday night when announcing the launch of the meme coin on his social media platform, Truth Social road.
The token website states that approximately 200 million digital tokens have been issued and 800 million more will be issued in the next three years.
“This Trump meme celebrates a leader who never backs down, no matter the odds,” the site said.
It includes a disclaimer stating that the token is “not intended to be the subject of an investment opportunity or security” and is “not political and not affiliated with any political movement, political office or government agency.”
Critics accuse Trump of using the presidency to make money.
Cryptocurrency venture capitalist Nick Tomaino said in a social media post: “Trump owns 80% of the shares and timing the release just hours before the inauguration is a predatory behavior that many people may be affected by. harm.”
Such digital tokens are notorious for speculators using hype to drive up their value before selling off at the top of the market, leaving latecomers to count their losses as prices plummet.
Cryptocurrency investors hope the Trump administration will boost the industry.
President Joe Biden’s regulators have cited concerns about fraud and money laundering as they crack down on cryptocurrency companies by prosecuting exchanges.
Trump has previously been uneasy about cryptocurrencies, but at a Bitcoin conference in Nashville last year, he said that once he returned to Washington, the United States would become the “crypto capital of the earth.”
His sons Erik and Donald Jr announced their cryptocurrency ventures last year.
