In an unprecedented move, former President Donald Trump has officially launched his own cryptocurrency, known as $Trump, which saw a steep increase in market capitalisation to nearly $5.5 billion shortly after its launch. This cryptocurrency was unveiled just before Trump officially assumes office as the 47th president of the United States on Monday.
The cryptocurrency, branded as a meme coin, was developed by CIC Digital LLC, which is affiliated with the Trump Organization; the company has previously marketed various products including Trump-branded shoes and fragrances. Meme coins are typically tied to viral trends but tend to lack intrinsic value, making them highly volatile investments.
The launch of $Trump was announced on Trump's social media platform, Truth Social, where he characterized the coin as a celebration of "winning." He emphasized that the coin reflects a leader who remains steadfast against challenges. Approximately 200 million tokens were initially issued, with plans to release another 800 million over the next three years.
However, the response to the launch has been mixed. Critics have raised alarms about the potentially exploitative nature of the launch, claiming it seems to capitalize on Trump's position and status. Crypto commentator Nick Tomaino pointed out that the timing of the launch, just hours before the inauguration, could be seen as predatory, suggesting that many new investors could face financial repercussions as the volatile nature of meme coins often leads to significant losses.
In a disclaimer on the coin's website, it is stated that $Trump is "not intended to be, or the subject of" an investment opportunity or security and has no ties to political campaigns or governmental entities. Despite previous hesitations towards cryptocurrency, Trump expressed optimism about America's potential to become a global leader in the crypto market during a Bitcoin conference last year. His two sons, Erik and Donald Jr., also ventured into the cryptocurrency industry last year.
As the cryptocurrency landscape evolves, many investors are watching closely, hoping the incoming Trump administration will provide a conducive environment for growth, particularly in light of recent crackdowns by the Biden administration over concerns related to fraud and money laundering in the sector.
