Trump launches cryptocurrency with price rocketing

Trump launches cryptocurrency with price rocketing

US President-Elect Donald Trump Launches $Trump Meme Coin Amid Inauguration Plans

US President-elect Donald Trump has launched his own cryptocurrency, the $Trump meme coin, which quickly surged in market capitalization to several billion dollars just hours after its release. This development comes as Trump prepares to take office as the 47th president of the United States.

The cryptocurrency venture, spearheaded by CIC Digital LLC—a subsidiary of the Trump Organization—has been coordinated with the goal of capitalizing on the viral meme coin trend. CIC Digital has previously been involved in selling Trump-branded products such as shoes and fragrances. Meme coins, like $Trump, are typically used to create online buzz and generate attention for a particular trend or movement. However, these coins often lack real-world value and are notoriously volatile investments.

By Saturday afternoon, just hours after the coin's launch, $Trump's market capitalization had already reached nearly $5.5 billion (£4.5 billion), according to CoinMarketCap.com. CIC Digital LLC and a newly-formed entity, Fight Fight Fight LLC, are responsible for owning 80% of the digital tokens, though it is unclear how much profit Trump may make from the venture.

The release of $Trump was announced on Trump's social media platform, Truth Social, with the former president exclaiming, "My NEW Official Trump Meme is HERE! It's time to celebrate everything we stand for: WINNING!"

As of the launch, 200 million tokens have been issued, with another 800 million set to be released over the next three years. The $Trump coin's website states that it is intended to “celebrate a leader who doesn't back down, no matter the odds.” Despite the coin's marketing, it also includes a disclaimer clarifying that the token is not meant to be an investment opportunity, a security, or associated with any political campaign or government agency.

Critics have expressed concerns over the timing of the coin's launch, pointing out that Trump stands to benefit significantly from its success, with some accusing him of exploiting his presidential status. Nick Tomaino, a crypto venture capitalist, commented on social media, “Trump owning 80% and timing launch hours before inauguration is predatory and many will likely get hurt by it.” Meme coins, in particular, are known for attracting speculative investors who buy based on hype and sell at the peak, often leaving latecomers with significant losses once prices inevitably crash.

Despite the criticism, cryptocurrency investors are hopeful that the Trump administration could provide a boost to the crypto industry. Under the Biden administration, regulators have cracked down on crypto companies amid concerns about fraud and money laundering. However, Trump has previously expressed support for cryptocurrencies. At a Bitcoin conference in Nashville last year, he stated that under his leadership, the U.S. would become "the crypto capital of the planet." Trump’s sons, Eric and Donald Jr., also launched their own crypto venture last year.

The $Trump meme coin’s rapid rise and controversial launch illustrate the ongoing intersection of politics and the volatile world of cryptocurrency, highlighting both the enthusiasm and skepticism surrounding new digital tokens in the marketplace.