In an unexpected step before of his inauguration, President-elect Donald Trump launched a new cryptocurrency, $TRUMP, which swiftly gained value. Launched on Friday, the meme coin’s market valuation has risen to roughly $12 billion by Monday, attracting billions in trading volume.
The $TRUMP currency, which runs on the Solana blockchain, is mostly controlled by businesses associated with the Trump Organization. Specifically, CIC Digital LLC and Fight Fight Fight LLC, both affiliated with the Trump Organization, possess 80% of the tokens.
The coin’s website emphasizes that $TRUMP is intended as a digital collectible and not an investment opportunity.
Shortly after $TRUMP’s launch, incoming First Lady Melania Trump unveiled her own cryptocurrency, $MELANIA, on Sunday. This introduction led to a significant market reaction, with $TRUMP’s value experiencing a sharp decline of over 40%, dropping from approximately $72 to below $39.
Despite this volatility, $TRUMP’s market capitalization remains substantial, and $MELANIA has achieved a market cap of $8.5 billion within hours of its launch.
These developments mark a notable shift in the Trumps’ stance on digital assets. Previously, Donald Trump had been critical of cryptocurrencies, labeling them a “scam.”
However, during his 2024 campaign, he accepted digital assets and has proposed creating a bitcoin reserve and appointing pro-crypto financial regulators.
The rapid rise and fluctuation in the value of these meme coins have raised concerns among financial experts. Critics argue that the high insider ownership and potential conflicts of interest could lead to market manipulation. Additionally, the lack of intrinsic value in meme coins makes them highly susceptible to speculative trading and volatility.
As the inauguration approaches, the cryptocurrency market is closely monitoring these developments, anticipating potential policy changes under the new administration that could impact the broader digital asset landscape.
